BERLIN — Second-quarter net income for Henkel AG increased by 11.8 percent to 558 million euros, or $617 million, adjusted for one-time charges, gains and restructuring charges. Sales in emerging markets, recent acquisitions and the strong U.S. dollar drove the solid growth, the company said.
Adjusted operating profit (EBIT) for the Düsseldorf-based maker of Schwarzkopf, Dial and Loctite adhesives grew by 14 percent to 768 million euros, or $849.3 million.
The consumer goods company’s group sales improved 13.5 percent to 4.7 billion euros, or $5.2 billion, for the April-June period, a rise of 2.4 percent in organic terms.
Henkel’s beauty-care division, which includes the Schwarzkopf, Dial and SexyHair brands, registered a sales uptick of 12.2 percent, with revenues rising to just over 1 billion euros, a new quarterly high for the unit. Organically, the increase was 1.9 percent, driven primarily by price increases, according to the firm. Adjusted earnings before interest and taxes for beauty care rose to 166 million euros, or $183.6 million, an improvement of 14.7 percent year-on-year.
The German company acquired three U.S. professional hair-care brands last year, strengthening Henkel’s pull in North America, its largest market.
All dollar figures are converted at average exchange for the period to which they refer.
In the first half of 2015, Henkel’s adjusted net income rose 12.4 percent to 1.2 billion euros, or $1.34 billion, while adjusted EBIT advanced to 1.48 billion euros, or $1.65 billion, up 14 percent. Group sales rose 13.1 percent to 9.1 billion euros ,or $10.2 billion, for January-June, a rise of 3 percent in organic terms. All business units contributed to the period’s growth, said Henkel.
Looking ahead to the rest of the year, Henkel chief executive officer Kasper Rorsted confirmed the firm’s previously reported full-year estimate of organic growth of 3 to 5 percent.
“We expect the current difficult global economic environment to persist. Market volatility will remain high. In this context, agility and flexibility are key success factors,” he commented. “We will therefore continue to adapt, further simplify and accelerate our structures and processes in line with the changing market conditions.”
Henkel was among the bidders for Procter & Gamble’s portfolio of hair-care brands, including Wella, which was sold to Coty last month.