PARIS – Henkel AG on Tuesday raised its earnings forecast for the full year, after reporting adjusted net income increased 8.1 percent and sales advanced 4.9 percent in the third quarter, bolstered by all of the company’s business units – beauty care, laundry and home care, and adhesive technologies.
The German maker of Dial, Schwarzkopf, Persil and Loctite maintained its guidance for organic sales growth of 2 percent to 4 percent in 2017, yet said it foresees a gain of around 9 percent for adjusted earnings per preferred share, up from the formerly reported 7 percent to 9 percent.
In the three months ended Sept. 30, the company’s adjusted net income reached 666 million euros, while revenues were 4.98 billion euros. On an organic basis, third-quarter sales were up 3 percent.
Andrew Wood, an analyst at Sanford C. Bernstein & Co. called the quarter “good,” “with results above consensus on organic top-line growth, margins and EPS growth.”
“Beating consensus and raising FY guidance is as close to the best you can expect from any quarterly reporting,” he continued.
Henkel chief executive officer Hans Van Byler, in a statement released Tuesday, called the consumer goods market “an increasingly challenging environment.”
“We expect the overall volatile and uncertain market environment to continue. Currency effects will have an increasingly negative impact,” he said “The difficult conditions in the consumer goods markets are likely to persist.”
In a call with financial analysts on Thursday, the company emphasized “that significant pricing and promotional pressures continue to hurt growth in beauty, and laundry and home care,” wrote Liberum’s Robert Waldschmidt in a note. “The market in Western Europe is down in aggregate.”
In the first nine months of the year, Henkel’s adjusted net income advanced 10 percent to 1.95 billion euros. Company sales gained 9.3 percent to 15.14 billion euros.