GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> Banking and Investments

 
  Share
  • Company records significant nominal sales growth of 9.6% to €5,098 million, with organic growth of 2.2% 
  • Africa / Middle East region posts sales growth of 1.1 %
  • Operating profit* increases by 11% to €909 million 
  • EBIT margin* improves by 20 basis points to 17.8%
  • Earnings per preferred share (EPS)* surges 10.7% to €1.55 
Dubai, UAE, August 29, 2017:  In Q2 2017, Henkel delivered a strong performance in a highly challenging market environment. The company reached new highs in quarterly sales, adjusted operating profit and EBIT margin, and increased earnings per preferred share. 
 
“All three of our business units contributed to the positive growth we witnessed in Q2,” said Henkel CEO Hans Van Bylen. “Sales grew significantly to around €5.1 billion. We further improved our adjusted operating profit as well as our adjusted EBIT margin. As a result, adjusted earnings per preferred share showed a double-digit growth.”
 
“We expect an overall volatile and uncertain market environment throughout the current fiscal year. Currency fluctuations are likely to continue, and we anticipate the difficult conditions in the consumer goods markets to persist. Looking ahead, we are fully committed to continuing our strong performance and to implementing our strategic priorities to reinforce the robust growth achieved,” added Van Bylen.
 
“Furthermore, we confirm our guidance for the full fiscal year 2017, and anticipate an organic sales growth of two to four percent. We estimate our adjusted EBIT margin to increase to more than 17 percent, while adjusted earnings per preferred share climbs by seven to nine percent.”
 
Sales and Earnings Performance in Q2 2017
Sales in Q2 2017 reached an all-time high of €5,098 million, and grew nominally by 9.6 percent compared to the same period last year, with acquisitions and divestments accounting for 7.4 percent of this growth. Meanwhile, organic sales that exclude the impact of foreign exchange effects and acquisitions/divestments, showed a solid increase of 2.2 percent, with positive contributions by both emerging and mature markets.
 
In a continuously challenging market environment characterized by high promotional and pricing pressure, the Western Europe region reported a slightly negative organic sales growth of -1.2 percent. All other regions recorded positive organic sales growth: Africa / Middle East posted a sales growth of 1.1 percent, while sales in North America increased by 3.2 percent. In Eastern Europe, sales grew by 5.2 percent. Latin America achieved a sales growth of 6.1 percent and in the Asia-Pacific region, sales surged by 4.8 percent. 
 
Business Unit Performance
The Adhesive Technologies business unit posted strong organic sales growth of 3.4 percent. In nominal terms, sales rose by 3.5 percent to a new high of €2,370 million. Adjusted operating profit increased by 6.6 percent to €455 million. Meanwhile, adjusted return on sales also reported a strong surge, reaching a record 19.2 percent.  
 
In the Beauty Care business unit, organic sales remained consistent for the same quarter last year. Nominally, sales grew by 0.9 percent to €997 million. Adjusted operating profit showed a significant increase of 4.3 percent and reached €180 million. Adjusted return on sales recorded a very strong growth to 18 percent, an all-time high.
 
The Laundry & Home Care business unit reported a solid 2.1 percent increase in organic sales. Nominally, sales increased by 26.6 percent to €1,703 million compared to the same quarter last year. Adjusted operating profit rose by 22.2 percent to €298 million, and adjusted return on sales recorded 17.5 percent.
 
Acquisitions by business units, including the acquisition of the global Darex Packaging Technologies business and the Sonderhoff Group at the beginning of Q3 2017 by the Adhesives Technologies business and of The Sun Products Corporation by the Laundry and Home Care business unit, contributed significantly to both sales and operating profit. 
 
Outlook for 2017 confirmed
Henkel confirms the outlook for the fiscal year 2017. Henkel expects to generate organic sales growth of 2 to 4 percent and anticipates that each business unit will generate organic sales growth within this range. For adjusted return on sales (EBIT), Henkel expects an increase versus the prior year to more than 17.0 percent. Henkel expects an increase in adjusted earnings per preferred share (EPS) of between 
7 and 9 percent.



Posted by : GoDubai Editorial Team
Viewed 9516 times
Posted on : Tuesday, August 29, 2017  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Brazilian coffee exports to MENA region witnesses 30 per cent increase during first seven months of ...
Next Story : Dubai Land Department reveals the top 10 nationalities that invested in Dubai's real estate market o...
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Mouawad Acquires The 51.38 Carat Dynasty Diamond From ALROSA
Panasonic's latest LUMIX DMC-TZ220 is the Ultimate Travel Companion
Summer Spirit
Introducing the GUESS Jeans Fall 2018 Collection
Instantly Refreshed Hair with HASK
Build Your Perfect Skincare Routine with Essentials from Glambeaute.com
Joyalukkas brings joy to hundreds around the world with summer gold bar giveaway
How to choose the right mascara
Cerruti 1881 MOLVENO timepiece and cufflinks
Kaya Skin Clinic's Expertise is pushing the Boundaries of Botox
Tissot Chrono XL NBA Team Collection Sporty Gets Smart
Hour Choice presents Coach Astor Collection
Transform your look with the ‘Perfect Brows'
Creating #futureclassic: Swatch Launches Skin Irony Collection
Joyalukkas adds a new destination for jewellery lovers in Al-Balad, Jeddah, KSA
Head to Modhesh World for Summer Fun Before the School Run
Delicious Whole Cakes at Sophie's Café from AED99
Carl F. Bucherer Presents Adamavi Collection
13 Emirati Authors Launched into the Portuguese Book Market
Never Run Out of Space for Those Joyful Summer Holiday Memories With Western Digital
Favourite florals: Bloom with our top floral picks from bebe
Business Wear by Hugo Boss
Ferrari introduces the world's first low-bake paint technology
The new Rado HyperChrome Chronograph in bronze and high-tech ceramic
Scuderia Ferrari presents ASPIRE collection
“The world is thirsty for an Arab superhero"
Carl F. Bucherer's Global Brand Ambassador Li Bingbing and Her Carl F. Bucherer ...
The Marriott International cyclist team completes 600km R2A cycle challenge
Joyalukkas opens newest showroom in Kuwait at Farwaniya
New Addition to the HUAWEI Nova 3 Series: On-trend and fashionable HUAWEI nova 3...
Calligraphy, etching and Palestinian embroidery: Learn it all at Tashkeel this S...
Nazih Introduces New Dr. Renaud Skincare Range
Big Android Breakthrough: Huawei's power packed GPU Turbo upgrade will turn you...
‘The Little Things' That Makes Summer All The More Enjoyable
XTouch Announces the Launch of the Robot Family Range of Rugged Mobile Phones
Let your kids enjoy some dancing at James & Alex Dance Studios
MEFMA reaffirms commitment to promote entrepreneurship & innovation across local...
The 2nd Edition of the Phanes Group Solar Incubator set to kick off 7th August 2018
du LaLiga HPC Top Talents Arrive in Spain for 21-day Annual Scouting Camp
Picking the Perfect Coffee Table with Home and Soul Dubai
Hilton Launches New Platform Dedicated to Offering Guests Bespoke, Unforgettable...
Danube Properties' Dh550 million Lawnz project at International City, sold out i...
VIP Golf Austin Offers Golf Packages For the Avid Tourist
Traditional Thali Indulgence at Antique Bazaar
Celebrate India's Independence Day with Sparkles of India
Dubai Judicial Institute collaborates with Union Coop to support the 7th Dubai J...
Advanced Treatment to Tackle Orthopaedic Issues in Adults Take Center Stage at C...
FREE DANCE WEEK is back at James & Alex Dance Studios
Dubai Tourism Publishes ‘12 Steps Towards Sustainability' Manual to Guide Hotels...
Fitness in DXB to Launch ‘the Pursuit of Happiness' Evening for Yoga and Inspiration