Germany’s Henkel Q2 net income rises on higher sales

08 August 2013 12:13  [Source: ICIS news]

LONDON (ICIS)--Henkel’s second-quarter adjusted net income attributable to shareholders rose by 12% to €461m ($615m) as sales climbed despite a challenging market environment, the home, personal care and adhesives group said on Thursday.

Sales for the quarter increased by 1.9% year on year to €4.29bn as Henkel “continued to see strong headwinds from currency effects, mainly coming from Japanese Yen, US dollar and Russian rouble,” it said.

The company added that adjusted earnings before interest and tax (EBIT) rose by 8.2% from €609m in the second quarter of 2012 to €660m, with all three of its business sectors, Laundry & Home Care, Beauty Care and Adhesive Technologies, contributing to the gain.

Adjusted return on sales (EBIT margin) increased by 0.9 percentage points in the second quarter compared with the same period the year before, taking it to 15.4%.

“Despite the continued challenging market environment, Henkel delivered a strong second quarter,” said Henkel CEO, Kasper Rorsted.

“We significantly increased both sales and earnings, with all our three business sectors contributing. Our adjusted return on sales has risen to 15.4% for the first time.

“While all regions reported growth, once again our emerging markets made an important contribution. The share of sales in emerging markets rose substantially, reaching 45% for the first time,” Rorsted added.

Looking forward to the second half of the year, Rorsted said: “We expect the overall economic environment to remain difficult. Hence, we will further improve our competitiveness. We will continue to adapt, simplify and accelerate our processes in order to respond more flexibly and efficiently to the volatile market environment in which we operate."

($1 = €0.75)

By: Franco Capaldo
+44 (0)20 8652 3214

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