BERLIN — Despite difficult market conditions, third-quarter adjusted net profits for Henkel AG grew by 11 percent to 564 million euros, or $627.3 million. After deductions attributable to non-controlling interests, quarterly net profits amounted to 484 million euros, or $538.4 million.

Growth was largely driven by sales in emerging markets, the company said.

Adjusted operating profit (EBIT) for the Düsseldorf-based consumer goods firm rose by 12.3 percent to 778 million euros, or $865.4 million, a record figure for Henkel.

Group sales for the maker of Schwarzkopf hair care, Dial soap, and Loctite adhesives, improved by 8.4 percent to 4.6 billion euros, or $5.1 billion.

Dollar figures are converted at average exchange rates for the period to which they refer.

In the three months ended September 30, Henkel’s beauty-care division, which includes the Schwarzkopf, Syoss, Fa and SexyHair brands, registered a sales uptick of 5 percent to 964 million euros, or $1.07 billion, representing an increase of 2.1 percent in organic terms. Adjusted EBIT for the division rose 10.7 percent to 155 million euros, or $172 million for the period.

RELATED CONTENT: WWD Earnings Tracker >>

“The strong third-quarter performance in challenging and volatile markets demonstrates our ability to adjust to the difficult economic environment,” commented Henkel chief executive officer Kasper Rorsted.

“Agility and flexibility remain key success factors for us, confirming our strategy of adapting and further simplifying our structures and processes in line with the changing market conditions.”

In the first nine months of 2015, adjusted net income for Henkel increased 11.9 percent to 1.63 billion euros, or $1.81 billion. Adjusted EBIT improved 13.4 percent to 2.25 billion euros, or $2.51 billion. For the January-September period, Henkel’s group sales were boosted by 11.5 percent to 13.7 billion euros, or $15.3 billion, another new high for the firm. The sales rise was 3.1 percent in organic terms. All divisions contributed to the gain, the company said.

Adjusted EBIT for Henkel’s beauty-care unit was up 12.3 percent to 471 million euros, or $525.2 million for the 9-month period. Sales for the period rose 9 percent to 2.9 billion euros, or $3.2 billion.

On Wednesday, Henkel also updated its full-year financial forecast, saying it anticipated organic group sales growth of 3 percent, with a sales uptick of around 2 percent for its beauty-care division. An adjusted EBIT margin increase of 16 percent is also anticipated, with all business units contributing.

Click Here for the WWD Global Stock Tracker >>

load comments
blog comments powered by Disqus