09.05.2018
Henkel AG & Co. KGaA DE0006048432
DGAP-News: Henkel AG & Co. KGaA: Henkel delivers positive organic sales growth and further improves margin and EPS
DGAP-News: Henkel AG & Co. KGaA / Key word(s): Quarter Results
Henkel AG & Co. KGaA: Henkel delivers positive organic sales growth and
further improves margin and EPS
09.05.2018 / 07:31
The issuer is solely responsible for the content of this announcement.
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May 9, 2018
Henkel reports positive development in Q1 despite delivery difficulties in
North American consumer businesses - negative currency developments impact
quarter
Henkel delivers positive organic sales growth and further improves margin
and EPS
- Sales at 4,835 million euros: organic growth +1.1%,
nominal -4.5%, impacted by negative currency effects of 8.6%
- Further EBIT margin* improvement: +50 basis points to 17.4%
- Growth in earnings per preferred share*: +1.4% to 1.43 euros,
impacted by negative currency effects of 6.4%
- On track to return to normal service levels in North America
in the course of the second quarter
- Outlook for fiscal year 2018 confirmed
Düsseldorf - "Henkel delivered a positive development in the first quarter
despite delivery difficulties in the consumer goods businesses in North
America. We grew sales organically and further increased the adjusted EBIT
margin. We improved adjusted earnings per preferred share in spite of very
negative currency developments. Based on this performance, we confirm our
outlook for the fiscal year 2018. We are committed to continue our
profitable growth," said Henkel CEO Hans Van Bylen.
"In the first quarter, we were confronted with exceptionally negative
currency effects, which impacted our reported sales with 8.6 percent or
about 440 million euros. Our operating profit and earnings per share were
also affected by the adverse currency developments," Hans Van Bylen
explained.
"In our adhesives business, we delivered very strong organic sales growth.
On the other hand, sales in the Laundry & Home Care and Beauty Care business
units were below prior-year level, mainly due to the delivery difficulties
in the consumer goods businesses in North America we reported in March,"
said Hans Van Bylen. "We are on track to return to normal service levels in
the course of the second quarter."
Sales and earnings performance in the first quarter 2018
Sales in the first quarter 2018 reached 4,835 million euros. Organic sales,
which exclude the impact of currency effects and acquisitions/divestments,
showed an increase of 1.1 percent. Negative currency effects had an impact
of 8.6 percent on sales. The contribution from acquisitions and divestments
amounted to 3.0 percent. Nominally, sales were 4.5 percent below the
prior-year quarter's level.
The Adhesive Technologies business unit reported a very strong organic
increase in sales of 4.7 percent. Due to the delivery difficulties in the
consumer goods businesses in North America, sales of the Beauty Care
business unit were organically 4.3 percent below the prior-year quarter. The
Laundry & Home Care business unit posted a slightly negative organic sales
development of 0.7 percent.
The emerging markets again made an above-average contribution to the organic
growth of the Group, with a very strong increase in organic sales of 6.9
percent. Due to the delivery difficulties in the consumer goods businesses
in North America, the mature markets registered a negative organic sales
development of 2.8 percent.
Sales in Western Europe grew organically by 0.2 percent. Eastern Europe
achieved organic growth of 7.6 percent. In Africa/Middle East, sales grew
organically by 8.6 percent. Due to the delivery difficulties in the consumer
goods businesses, sales in the North America region decreased organically by
6.5 percent. Latin America achieved organic growth of 7.3 percent, and in
the Asia-Pacific region, sales grew organically by 4.2 percent.
Adjusted operating profit (EBIT) was at 842 million euros, 1.4 percent below
the level of the first quarter 2017 (854 million euros). Currencies had a
negative effect of 6.2 percent.
Adjusted return on sales (EBIT) rose by 0.5 percentage points to 17.4
percent.
Adjusted earnings per preferred share grew by 1.4 percent from 1.41 euros to
1.43 euros. EPS growth was negatively impacted by currency effects of 6.4
percent.
With 6.2 percent, net working capital as a percentage of sales was above the
level of the first quarter 2017 (4.9 percent).
Effective March 31, 2018, Henkel's net financial position showed a balance
of
-3,247 million euros (December 31, 2017: -3,225 million euros).
Business unit performance
The Adhesive Technologies business unit generated very strong organic sales
growth of 4.7 percent in the first quarter. Nominally, sales amounted to
2,270 million euros after 2,295 million euros in the prior-year quarter.
Adjusted operating profit reached 410 million euros and was slightly below
the level of the first quarter 2017. With 18.1 percent, adjusted return on
sales was at the level of the prior-year quarter.
Sales of the Beauty Care business unit decreased organically by 4.3 percent
in the first quarter. Excluding the impact from the delivery difficulties in
North America, sales would have been around prior-year level. In nominal
terms, sales amounted to 965 million euros after 1,011 million euros in the
prior-year quarter. Adjusted operating profit reached 161 million euros, a
decrease of 4.6 percent compared to the prior-year quarter. Adjusted return
on sales showed a stable development and reached 16.7 percent.
Organically, the Laundry & Home Care business unit registered a slight
decrease in sales of 0.7 percent in the first quarter. Excluding the
delivery difficulties in North America, Laundry & Home Care would have
reported a good sales growth. Nominally, sales amounted to 1,569 million
euros after 1,726 million euros in the prior-year quarter. At 291 million
euros, adjusted operating profit was 2.5 percent below the level of the
first quarter 2017. Adjusted return on sales grew by 1.2 percentage points
to 18.5 percent.
Outlook for fiscal year 2018 confirmed
In the further course of the year Henkel expects the volatile and uncertain
market environment to continue. The significant currency fluctuations will
remain. Henkel continues to expect the US dollar to weaken against the euro
compared to full year 2017, and some currencies of importance in the
emerging markets are also likely to devaluate. In addition, Henkel expects
prices for raw materials and packaging to continue to rise compared to the
previous year.
For the fiscal year 2018 Henkel confirmed the latest outlook from March
2018. Henkel expects to generate organic sales growth of 2 to 4 percent,
with Adhesive Technologies and Laundry & Home Care delivering growth within
this range and Beauty Care between 0 and 2 percent. For adjusted return on
sales (EBIT), Henkel anticipates an increase to more than 17.5 percent with
all three business units contributing. Reflecting the uncertainty in the
currency markets, especially the US dollar trend, Henkel expects an increase
in adjusted earnings per preferred share in euro of between 5 and 8 percent.
About Henkel
Henkel operates globally with a well-balanced and diversified portfolio. The
company holds leading positions with its three business units in both
industrial and consumer businesses thanks to strong brands, innovations and
technologies. Henkel Adhesive Technologies is the global leader in the
adhesives market - across all industry segments worldwide. In its Laundry &
Home Care and Beauty Care businesses, Henkel holds leading positions in many
markets and categories around the world. Founded in 1876, Henkel looks back
on more than 140 years of success. In 2017, Henkel reported sales of 20
billion euros and adjusted operating profit of around 3.5 billion euros.
Combined sales of the respective top brands of the three business units -
Loctite, Schwarzkopf and Persil - amounted to 6.4 billion euros. Henkel
employs more than 53,000 people globally - a passionate and highly diverse
team, united by a strong company culture, a common purpose to create
sustainable value, and shared values. As a recognized leader in
sustainability, Henkel holds top positions in many international indices and
rankings. Henkel's preferred shares are listed in the German stock index
DAX. For more information, please visit www.henkel.com.
This document contains forward-looking statements which are based on the
current estimates and assumptions made by the corporate management of Henkel
AG & Co. KGaA. Forward-looking statements are characterized by the use of
words such as expect, intend, plan, predict, assume, believe, estimate,
anticipate, forecast and similar formulations. Such statements are not to be
understood as in any way guaranteeing that those expectations will turn out
to be accurate. Future performance and the results actually achieved by
Henkel AG & Co. KGaA and its affiliated companies depend on a number of
risks and uncertainties and may therefore differ materially from the
forward-looking statements. Many of these factors are outside Henkel's
control and cannot be accurately estimated in advance, such as the future
economic environment and the actions of competitors and others involved in
the marketplace. Henkel neither plans nor undertakes to update
forward-looking statements.
Contacts
Investors & Analysts
Lars Korinth
Phone: +49 211 797 - 1631
Email: [email protected]
Dr. Eva Sewing
Phone: +49 211 797 - 5277
Email: [email protected]
Christopher Huesgen
Phone: +49 211 797 - 4314
Email: [email protected]
Mona Niermann
Phone: +49 211 797 - 7151
Email: mona.niermann @henkel.com
Press & Media
Lars Witteck
Phone: +49 211 797 - 2606
Email: [email protected]
Wulf Klüppelholz
Phone: +49 211 797 - 1875
Email: [email protected]
Jennifer Ott
Phone: +49 211 797 - 2756
Email: [email protected]
Hanna Philipps
Phone: +49 211 797 - 3626
Email: [email protected]
The statement for the first quarter of 2018 and other information with
download material as well as the link to the teleconference broadcast can be
found on the internet at:
www.henkel.com/press
www.henkel.com/ir
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09.05.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: Henkel AG & Co. KGaA
Henkel Str. 67
40191 Düsseldorf
Germany
Phone: +49 (0)211 797-0
Fax: +49 (0)211 798-4008
E-mail: [email protected]
Internet: www.henkel.de
ISIN: DE0006048432, DE0006048408
WKN: 604843, 604840
Indices: DAX
Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime
Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated
Unofficial Market in Tradegate Exchange
End of News DGAP News Service
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684035 09.05.2018
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