Henkel finishes strong in the first quarter

Hans Van Bylen, CEO, Henkel said, “The consumer goods markets were characterised by intensifying promotional and pricing pressure. We were able to significantly increase sales and earnings and to further grow adjusted return on sales. For the first time, quarterly sales exceeded five billion Euros. Adjusted operating profit also reached a new high. All three business units and all regions contributed to the successful development and the high quality of earnings.”

“This strong performance was driven by our leading brands and innovations, our intensified focus on our customers and consumers, the acceleration of our digital activities and our highly committed global team. We further strengthened our portfolio and signed two compelling acquisitions,” added Bylen.

Talking about the fiscal year 2017, Bylen, said, “We expect the overall volatile and uncertain market environment to persist throughout the year. Currency fluctuations are likely to continue and the prices for commodities are expected to increase. We also anticipate promotional and pricing pressure in the consumer goods markets to further increase. Nevertheless, we are committed to continuing our successful development. We expect organic sales growth of two to four percent. We expect our adjusted EBIT margin to increase to more than 17.0 percent and adjusted earnings per preferred share to grow between seven and nine percent.”

Henkel has also signed an agreement to acquire the global Darex Packaging Technologies business from GCP Applied Technologies and an agreement to acquire the Mexican hair care company Nattura Laboratorios.