PARIS — Henkel AG posted a 10.3 percent gain in second-quarter net profits, spurred by all three of the company’s business units — beauty care, laundry and home care, and adhesive technologies.
Net income for the three months ended June 30 reached 631 million euros, while sales for the maker of Dial, Persil and Loctite grew 9.6 percent to 5.1 billion euros.
“This is a strong performance in a highly challenging market environment,” chief executive officer Hans Van Bylen said in a statement on Thursday.
“We expect an overall volatile and uncertain market environment throughout the year,” he continued. “Currency fluctuations are likely to continue, and we anticipate the difficult conditions in the consumer goods markets to persist. We are fully committed to continue our successful development and implement our strategic priorities.”
During the first half, the Düsseldorf, Germany-based company’s net income rose 11.5 percent to 1.11 billion euros, and its adjusted operating profit improved 12.3 percent to 1.76 billion euros.
Group sales in the period advanced 11.5 percent to 10.16 billion euros — marking the first time Henkel’s half-yearly sales exceeded 10 billion euros.
The company’s beauty care division, which includes brands such as Schwarzkopf, Fa and Syoss, registered a 5.8 percent gain in adjusted operating profit to 348 million euros. The branch’s sales rose 3.6 percent to 2.01 billion euros.
Revenues for Henkel’s adhesive technologies business advanced 5.2 percent to 4.67 billion euros, while the group’s laundry and home care activity posted a 28.1 percent gain in sales to 3.43 billion euros.
Looking ahead, Van Bylen confirmed guidance for the full year. Henkel anticipates organic sales growth of 2 percent to 4 percent, adjusted earnings before interest and taxes (EBIT) margin to increase to more than 17 percent, and adjusted earnings per preferred share to grow between 7 percent and 9 percent in 2017.