11.11.2015
Henkel AG & Co. KGaA DE0006048432
DGAP-News: Henkel AG & Co. KGaA:
DGAP-News: Henkel AG & Co. KGaA / Key word(s): Quarter Results
Henkel AG & Co. KGaA:
11.11.2015 / 07:30
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November 11, 2015
Full-year guidance for EPS growth raised
Henkel delivers strong increase in Q3 sales and earnings
- Sales: +8.4% to 4,590 million euros (organic: +3.2%)
- Operating profit*: +12.3% to 778 million euros
- EBIT margin*: +0.5 percentage points to 16.9%
- Earnings per preferred share* (EPS): +11.1% to 1.30 euros
- Strong organic sales growth in emerging markets: +6.5%
*Adjusted for one-time charges/gains and restructuring charges
Düsseldorf - "Despite a persistently challenging market environment, Henkel
delivered a strong performance in the third quarter. We significantly
increased both sales and earnings across all business units. Organic sales
in emerging markets were strong, once again making an above average
contribution to growth. Mature markets showed a positive development,
driven especially by the solid performance in North America. Here we grew
our business for the third consecutive quarter," said Henkel CEO Kasper
Rorsted. "Adjusted operating profit and adjusted EBIT margin reached record
levels in the third quarter and all business units reported a higher
adjusted EBIT and adjusted EBIT margin than in the previous year."
"The strong third quarter performance in challenging and volatile markets
demonstrates our ability to adjust to the difficult economic environment.
Agility and flexibility remain key success factors for us, confirming our
strategy of adapting and further simplifying our structures and processes
in line with the changing market conditions."
Guidance for EPS growth raised
Henkel specified the outlook for organic sales growth and raised its
guidance for EPS growth for the fiscal year 2015: "We now expect to achieve
organic sales growth of around 3 percent in 2015. We continue to expect our
adjusted EBIT margin to increase to around 16 percent and now anticipate an
increase in adjusted earnings per preferred share of more than 10 percent."
Sales and earnings performance in the third quarter 2015
In the third quarter of 2015, sales rose significantly by 8.4 percent to
4,590 million euros. Adjusted for positive foreign exchange effects of 2.3
percent, sales improved by 6.1 percent. Organically - i.e. adjusted for
foreign exchange and acquisitions/divestments - sales rose by 3.2 percent.
The Laundry & Home Care business unit recorded strong organic sales growth
of 5.5 percent. In the Beauty Care business unit, organic sales rose by a
solid 2.1 percent. The Adhesive Technologies business unit also posted a
solid improvement in organic sales of 2.3 percent.
After one-time charges, one-time gains and restructuring charges, adjusted
operating profit improved by 12.3 percent from 693 million euros to 778
million euros. Reported operating profit (EBIT) grew by 10.4 percent from
603 million euros to 666 million euros.
Adjusted return on sales increased by 0.5 percentage points to 16.9
percent. Reported return on sales rose by 0.3 percentage points to 14.5
percent.
Henkel's financial result of -11 million euros was at the level of the
prior-year quarter. The tax rate amounted to 24.6 percent (prior-year
quarter: 24.0 percent).
Adjusted net income for the quarter after deducting non-controlling
interests increased by 11.0 percent, from 508 million euros to 564 million
euros. Reported net income for the quarter grew by 9.8 percent, from 450
million euros to 494 million euros. After deducting 10 million euros
attributable to non-controlling interests, quarterly net income increased
to 484 million euros (prior-year quarter: 440 million euros).
Adjusted earnings per preferred share (EPS) rose by 11.1 percent from 1.17
euros to 1.30 euros. Reported EPS increased by 10.9 percent from 1.01 euros
to 1.12 euros.
Net working capital relative to sales increased year on year by 0.4
percentage points to 6.0 percent. The rise is primarily due to
acquisitions.
Business performance January through September 2015
In the first nine months of 2015, Henkel's sales increased significantly by
1,413 million euros to 13,715 million euros, reaching a new high for
Henkel. This was an increase of 11.5 percent compared to the first nine
months of 2014. Adjusted for foreign exchange, sales grew by 6.4 percent.
Organically - i.e. adjusted for foreign exchange and
acquisitions/divestments - sales increased by 3.1 percent, with all three
of Henkel's business units contributing.
Adjusted operating profit grew by 267 million euros from 1,986 million
euros to 2,253 million euros (+13.4 percent). Adjusted return on sales
increased from 16.1 percent to 16.4 percent.
Adjusted net income for the first nine months, after deducting
non-controlling interests, rose by 11.9 percent from 1,459 million euros to
1,632 million euros.
Adjusted earnings per preferred share (EPS) improved by 11.9 percent from
3.37 euros to 3.77 euros.
Henkel's net financial position as of September 30, 2015 was -336 million
euros (December 31, 2014: -153 million euros). The change versus year-end
2014 is mainly due to the dividend payout and payments for acquisitions.
Business unit performance in the third quarter 2015
The Laundry & Home Care business unit once again very successfully
delivered profitable growth in the third quarter of 2015. Sales grew
organically by 5.5 percent year on year, outperforming the relevant
markets. This led to further market share gains. Nominally, sales again
increased double digits, by 10.6 percent to 1,314 million euros (prior-year
quarter: 1,188 million euros).
The strong organic sales growth was mainly driven by the performance in
emerging markets. The regions of Eastern Europe and Asia (excluding Japan)
both recorded double-digit growth. Latin America posted a very strong
increase in sales. Despite challenging conditions, the Africa/Middle East
region posted strong growth. The mature markets recorded positive sales
growth which was due in particular to a solid performance in North America.
Sales in Western Europe remained at the level of the third quarter of 2014.
Adjusted operating profit of the Laundry & Home Care business unit
increased significantly, by 19.3 percent to 239 million euros. Adjusted
return on sales showed an excellent increase, reaching a new high of 18.2
percent. Reported operating profit also grew substantially, by 23.0 percent
from 171 million euros in the prior-year quarter to 211 million euros.
The Beauty Care business unit also continued on its long-standing
profitable growth path in the third quarter of 2015. At 2.1 percent,
organic sales growth was once again above that of the relevant markets,
leading to further market share gains. Nominally, sales increased by 5.0
percent to 964 million euros (prior-year quarter: 918 million euros).
With a very strong increase in organic sales, the business unit's
successful development in the emerging markets continued. The Latin America
region again grew double digits. Eastern Europe recorded a very strong
increase in sales. The Asia region (excluding Japan) posted a strong sales
performance, mainly driven by double-digit growth in China. Africa/Middle
East posted solid organic sales growth. Business in the mature markets
continued to be impacted by intense crowding-out competition and strong
price pressure. Due particularly to developments in Western Europe and the
mature markets of the Asia-Pacific region, sales were slightly below the
level of the prior-year quarter. By contrast - and despite a challenging
competitive environment - North America posted strong growth compared to
the third quarter of 2014.
Adjusted operating profit of the Beauty Care business unit rose
significantly versus the prior-year quarter, by 10.7 percent to 155 million
euros. Adjusted return on sales also showed a very strong increase to 16.1
percent. Reported operating profit grew by 45.2 percent to 142 million
euros.
The Adhesive Technologies business unit recorded solid organic sales growth
of 2.3 percent in the third quarter. Nominally, sales increased by 8.5
percent to 2,279 million euros (prior-year quarter: 2,100 million euros).
The business unit's successful development in the emerging markets
continued with solid organic sales growth. Latin America recorded
double-digit growth. Eastern Europe and Africa/Middle East reported strong
sales growth, although the situation in some countries was difficult. In
Asia (excluding Japan), sales were below the level of the prior-year
quarter, due particularly to weaker economic growth in China. Overall,
sales performance in the mature markets was positive, with the mature
markets of the Asia-Pacific region recording strong growth. Sales in North
America showed positive development. In Western Europe, however, organic
sales were slightly lower year on year.
Adjusted operating profit of the Adhesive Technologies business unit
increased significantly versus the third quarter of 2014 - by 10.3 percent
to 412 million euros. Adjusted return on sales showed a solid improvement -
reaching 18.1 percent for the first time. Reported operating profit
increased by 3.7 percent to 367 million euros.
Regional performance in the third quarter 2015
Henkel's sales in the Western Europe region increased by 6.0 percent to
1,508 million euros. In a highly competitive market environment, organic
sales were 1.3 percent lower than in the prior-year quarter, although with
mixed developments within the region. While the businesses in the United
Kingdom, France, and Southern Europe posted an increase in organic sales,
sales in Germany were below the level of the third quarter of 2014. Sales
in Eastern Europe amounted to 733 million euros compared to 792 million
euros in the prior-year quarter. Despite the challenging market
environment, however, organic growth amounted to 9.7 percent with the
businesses in Russia and Turkey making a major contribution. Sales in
Africa/Middle East rose from 279 million euros to 320 million euros.
Although political unrest in some countries continued to affect growth,
organic sales showed a strong increase of 5.9 percent.
Sales in North America rose from 755 million euros to 940 million euros.
Organically, sales improved by 3.2 percent, with all three business units
contributing. Sales in Latin America rose from 266 million euros to 280
million euros. The organic increase was 10.9 percent. This improvement was
primarily attributable to double-digit growth in Mexico. Sales in the
Asia-Pacific region rose from 691 million euros to 777 million euros.
Organically, sales improved by 0.8 percent. While the mature markets in the
region reported solid growth, sales in the emerging markets rose only
slightly as a result of slowing growth dynamics in China.
In the emerging markets of Eastern Europe, Africa/Middle East, Latin
America and Asia (excluding Japan), sales grew by 4.2 percent to 1,994
million euros. Organically, sales in emerging markets grew by 6.5 percent,
again making an above-average contribution to organic growth at the Henkel
Group, with all three business units contributing. The share of sales from
emerging markets declined compared to the third quarter of 2014, to 43
percent. In the mature markets, sales grew organically by 0.4 percent to
2,563 million euros.
Outlook of the Henkel Group 2015
Henkel has specified its guidance for organic sales growth for the fiscal
year 2015 and now expects growth of approximately 3 percent. Organic sales
growth in the Laundry & Home Care business unit is expected to be between 4
and 5 percent. In the Beauty Care business unit, Henkel continues to expect
organic sales growth of approximately 2 percent. Due in particular to
slowing growth in China, Henkel now anticipates that organic sales growth
in the Adhesive Technologies business unit will be between 2 and 3 percent.
As before, Henkel expects a stable development in the share of sales from
emerging markets. Henkel confirms its guidance for adjusted return on sales
(EBIT) and continues to expect an increase to around 16 percent (2014: 15.8
percent) and that all business units will contribute to this improvement.
Henkel has raised its guidance for adjusted earnings per preferred share
and now expects an increase of more than 10 percent (2014: 4.38 euros).
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
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.
Contact:
Investor & Analyst
Renata Casaro
Phone: +49 211 797 - 1631
Email: [email protected]
Dominik Plewka
Phone: +49 211 797 - 7151
Email: [email protected]
Cedric Schupp
Phone: +49 211 797 - 4314
Email: [email protected]
Dr. Eva Sewing
Phone: +49 211 797 - 5277
Email: [email protected]
Media
Lars Witteck
Phone: +49 211 797 - 2606
Email: [email protected]
Wulf Klüppelholz
Phone: +49 211 797 - 1875
Email: [email protected]
Julie Cruz
Phone: +49 211 797 - 8551
Email: [email protected]
The report for the third quarter of 2015 and further information with
download material and the link to the teleconference broadcast can be found
on the internet at:
www.henkel.com/ir
www.henkel.com/press
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11.11.2015 Dissemination of a Corporate News, transmitted by DGAP - a
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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;
Terminbörse EUREX
End of News DGAP News Service
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