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 8821 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
Meet the FOREO family as they share their top tips for radiant skin during the ...
Three Trends to Try with Palladio Beauty
bebe Launches First Ever Ramadan Capsule Collection
Max Fashion Reveals Latest 2018 Fashion Trends at Exclusive Trunk Show
Lexus sweeps two podium finishes at round two of 2018 AUTOBACS SUPER GT 500 series
Care for your baby's sensitive skin with Corine de Farme
Ramadan-Inspired Sandro SS18 Pieces
New Master Maserati Driving Courses for 2018
Spinneys Puts Local Food Heroes in the Spotlight this Ramadan
Do Explore More with Pandora
‘Tree of Life' Continues to Change Lives at Arabian Center, This Ramadan
Ethereum - Second In A Series Of Exclusive Cryptocurrency Watches Launched
Marchon Eyewear New Collections
Get Voluminous Eyelashes and Eyebrows with Rodial's Lash and Brow Booster Serum
Global Light and Power Celebrates 10 Years with the Opening of their New Showroo...
Mads Mikkelsen Spotted on Red Carpet at Cannes Wearing Ulysse Nardin Masterpiece
RAK Diabetes Center in Jumeirah offering Free Lifestyle wellness checks and Diet...
Charlotte Tilbury, the World's #1 Celebrity Makeup Artist, Announces the Opening...
Caudalie The Cleansing Collection
Pottery Barn Kids Launches Baby Registry Service to Welcome Newborns
Karl Lagerfeld Celebrates Fall / Winter 2018 Collection
Make Ramadan Better With the Gift of Sharing
Aru Impressed with Team Spirit as Italian Champion Secures Top Ten Finish
Hour Choice Presents Coach Perry Collections – Ramadan Exclusive
Breitling's Navitimer 8 Collection Arrives in The Middle East
Facebook Launches Youth Portal, a Central Place for Teens
Stay connected with your loved ones this Ramadan season with the Nokia smartphones
Pick what suits you from essence Spring/Summer 2018 nail polish collection
CND™ Boho Spirit: The Collection Summer 2018 Shades
White Man & Woman Focuses on Innovation and Sustainability With Patagonia at Whi...
Global Rollout of LGG7 Thinq Gets Underway
LG G7 Thinq Offers Deep AI Integration for Maximum User Convenience
1st Edition of Cannes International Film Festival From May 8 to 19, 2018
Elvis Presley's OMEGA Sells for a World Record CHF 1,500,000 at Auction
du Helps You Stay Connected this Ramadan with Exclusive Offers Throughout the Ho...
MAC - Prep + Prime Fix +
Celebrate Father's Day in 'Swiss Style' with Raymond Weil.
Etihad Airways Introduces Ai Robot Sophia to Abu Dhabi
Glambeaute.com's Special Ramadan Beauty Packs
Revel in the all-new Mango Memory Menu – a summer treat by Moombai & Co
Get Your Nails Summer Ready with FC Beauty
Dubai Festival City is the place to be this Ramadan
A Nose for Great Sound
HP and DiSTI Join Forces to Reinvent Enterprise Training Using Virtual Reality
Turkish Airlines Announced its 2018 April Passenger and Cargo Traffic Results
Lufthansa Group and Travix announce NDC partnership
Etisalat Launches First Commercial 5G Network in the MENA
Manero Flyback A Modern Take on a Retro Style
Qualcomm, Nokia and Leading TV Broadcasting Ecosystem Companies in Europe Showca...
Sheikh Juma launches his Asian Games preparations with NAS Run