07.05.2015
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:
07.05.2015 / 07:30
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May 7, 2015
Strong performance in first quarter
Henkel reports good start to fiscal 2015
- Sales: +12.7% to 4,430 million euros (organic: +3.6%)
- Operating profit*: +14.1% to 707 million euros
- EBIT margin*: +0.2 percentage points to 16.0%
- Earnings per preferred share* (EPS): +13.5% to 1.18 euros
- Very strong sales growth in emerging markets: Organic +7.7%
*Adjusted for one-time charges/gains and restructuring charges
Düsseldorf - "In a challenging environment, Henkel delivered a strong
performance in the first quarter and had a good start to the fiscal year
2015. We again increased both sales and earnings. We achieved our highest
quarterly sales to date, thanks to good organic sales growth, the impact of
last year's acquisitions and the strong US dollar. All business units
contributed to this successful quarter. Once again, we delivered a very
strong performance in our emerging markets," said Henkel CEO Kasper
Rorsted.
Commenting on the fiscal year 2015, Rorsted stated: "We expect the economic
environment to remain difficult. Due to the continuing conflict between
Russia and Ukraine, we still assume that the Eastern European economy will
stagnate in 2015. In this context, a high degree of agility and flexibility
will remain key success factors. We will therefore continue to simplify and
accelerate our structures and processes."
2015 guidance confirmed
Rorsted confirmed the outlook for the current fiscal year: "We expect to
achieve organic sales growth of 3 to 5 percent in 2015. We expect adjusted
return on sales to increase to around 16 percent and anticipate an increase
in adjusted earnings per preferred share of approximately 10 percent."
Sales and earnings performance in the first quarter 2015
In the first quarter of 2015, sales rose significantly by 12.7 percent,
reaching a new quarterly high of 4,430 million euros. Adjusted for positive
foreign exchange effects of 5.8 percent, sales improved by 6.9 percent.
Organically - i.e. adjusted for foreign exchange and
acquisitions/divestments - sales rose by 3.6 percent.
The Laundry & Home Care business unit recorded strong organic sales growth
of 5.2 percent. In the Beauty Care business unit a solid increase in
organic sales of 2.1 percent was achieved. The Adhesive Technologies
business unit posted a solid improvement in organic sales of 3.3 percent.
After one-time gains, one-time charges and restructuring charges, adjusted
operating profit improved by 14.1 percent, from 619 million euros to 707
million euros. Reported operating profit (EBIT) grew by 6.5 percent, from
608 million euros to 648 million euros.
Adjusted return on sales (EBIT margin) increased by 0.2 percentage points
to 16.0 percent. Reported return on sales amounted to 14.6 percent compared
to 15.5 percent in the prior-year quarter.
Henkel's financial result improved by 6 million euros to -9 million euros.
This was attributable to improvements in both net interest result and
foreign exchange result. The improvement in net interest result was due in
part to the repayment of a senior bond and the maturing of interest rate
fixings in March 2014. The tax rate amounted to 24.6 percent compared to
23.1 percent in the prior-year quarter.
Adjusted net income for the quarter, after deducting non-controlling
interests, increased by 12.8 percent from 452 million euros to 510 million
euros. Reported net income for the quarter rose by 5.7 percent from 456
million euros to 482 million euros. After deducting 12 million euros
attributable to non-controlling interests, net income increased to 470
million euros (prior-year quarter: 449 million euros).
Adjusted earnings per preferred share (EPS) rose by 13.5 percent from 1.04
euros to 1.18 euros. Reported EPS increased from 1.04 euros to 1.09 euros.
Net working capital relative to sales increased year-on-year by 1.4
percentage points to 6.2 percent. The rise is primarily due to the
acquisitions made in 2014 and foreign exchange effects.
Henkel's net financial position as of March 31, 2015 was 10 million euros.
As of December 31, 2014, the net financial position was -153 million euros.
Business unit performance in the first quarter 2015
The Laundry & Home Care business unit again recorded profitable growth in
the first quarter of 2015. Sales grew organically by 5.2 percent
year-on-year, outperforming the relevant markets. This led to higher market
shares. Nominally, sales increased double digits, by 13.2 percent to 1,298
million euros (prior-year quarter: 1,147 million euros).
The strong increase in organic sales was mainly attributable to the
emerging markets. Africa/Middle East reported double-digit growth. Eastern
Europe recorded very strong growth, while Latin America posted a solid
performance. Sales growth in the mature markets was positive overall. This
was due primarily to the positive performance in Western Europe and, in
particular, strong growth in Germany. Sales in North America remained at
the level of the first quarter of 2014.
Adjusted operating profit of the Laundry & Home Care business unit
increased by 16.7 percent to 222 million euros. At 17.1 percent, adjusted
return on sales improved by a strong 0.5 percentage points versus the first
quarter of 2014. Reported operating profit was 192 million euros compared
to 196 million euros in the prior-year quarter.
The Beauty Care business unit also posted further profitable growth in the
first quarter of 2015. At 2.1 percent, organic sales growth was once again
above that of the relevant markets, leading to market share increases.
Nominally, sales increased by 9.9 percent to 940 million euros (prior-year
quarter: 856 million euros).
The business unit's successful development in the emerging markets
continued with very strong organic sales growth. The regions Asia
(excluding Japan), Africa/Middle East and Latin America registered
double-digit growth, while Eastern Europe continued to show solid
development. The situation in the mature markets was characterized by a
persistently difficult market environment. As a result, sales remained
slightly below the figure for the first quarter of 2014. While growth in
North America was solid, sales in the mature markets of the Asia-Pacific
region were below the level of the prior-year quarter.
Adjusted operating profit of the Beauty Care business unit rose by 11.4
percent versus the prior-year quarter and reached 150 million euros for the
first time. Adjusted return on sales improved by 0.2 percentage points to
15.9 percent. Reported operating profit grew by 17.0 percent to 133 million
euros.
The Adhesive Technologies business unit generated solid organic sales
growth of 3.3 percent in the first quarter. Nominally, sales increased by
14.1 percent to 2,160 million euros (prior-year quarter: 1,893 million
euros).
The emerging markets achieved strong organic sales growth, with the
Africa/Middle East region reporting a double-digit percentage increase.
Asia (excluding Japan) registered strong growth. Business in Eastern Europe
was also characterized by a strong performance, despite the ongoing
difficult political situation in parts of the region. The Latin America
region registered solid sales growth. Overall, sales in the mature markets
were organically positive. The North America region posted a solid
increase. While the businesses in the mature markets of the Asia-Pacific
region performed positively versus the prior-year quarter, sales in Western
Europe remained stable.
Adjusted operating profit of the Adhesive Technologies business unit
increased double digits by 10.6 percent year-on-year, to 353 million euros.
At 16.4 percent, adjusted return on sales was below the high level of the
prior-year quarter, having been negatively impacted by the weakness of
important currencies and investments in brands and innovations. Reported
operating profit increased by 4.2 percent to 345 million euros.
Regional performance in the first quarter 2015
Henkel's sales in the Western Europe region increased by 5.6 percent, to
1,531 million euros. Organically, sales reached the level of the prior-year
quarter. Sales in the Eastern Europe region amounted to 625 million euros
compared to 670 million euros in the prior-year quarter. Organically, a
strong sales increase of 6.7 percent was achieved. Russia was the main
growth driver with a double-digit increase in organic sales. Sales in the
Africa/Middle East region rose from 277 million euros to 350 million euros.
Although the political situation continued to affect business development,
organic sales grew double digits by 12.3 percent in the first quarter of
2015. All business units achieved double-digit growth in this region.
Sales in North America increased from 670 million euros to 885 million
euros. Organic sales growth reached a solid 2.4 percent. In Latin America,
sales rose by 13.7 percent to 274 million euros. Organically, the increase
was 5.3 percent. This strong improvement was primarily driven by the
performance in Mexico. Sales in the Asia-Pacific region rose from 588
million euros to 732 million euros. Organically, sales improved by 5.9
percent, a strong business performance due in particular to very strong
growth in China. In India organic sales grew strongly and Indonesia
reported double-digit growth.
In the emerging markets of Eastern Europe, Africa/Middle East, Latin
America and Asia (excluding Japan), sales grew by 12.0 percent to 1,870
million euros. Organic growth was once again very strong at 7.7 percent.
All three business units contributed to this increase. Compared to the same
prior-year quarter, the share of sales from the emerging markets remained
constant at 42 percent. In the mature markets, sales rose 0.6 percent
organically and amounted to 2,528 million euros.
Outlook for the Henkel Group 2015
Henkel continues to expect organic sales growth of 3 to 5 percent in the
fiscal year 2015. Henkel expects that the Adhesive Technologies and Laundry
& Home Care business units will each generate organic sales growth within
this range. In the Beauty Care business unit, Henkel expects growth of
approximately 2 percent. As before, Henkel expects a stable development in
the share of sales from emerging markets. Compared to the 2014 figures,
Henkel expects adjusted return on sales (EBIT) to increase to around 16
percent and an increase in adjusted earnings per preferred share of
approximately 10 percent.
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.
Henkel Contacts
Investors & Analysts
Renata Casaro
Tel.: +49 211 797 - 1631
E-Mail: [email protected]
Dominik Plewka
Tel.: +49 211 797 - 7151
E-Mail: [email protected]
Cedric Schupp
Tel.: +49 211 797 - 4314
E-Mail: [email protected]
Eva Sewing
Tel.: +49 211 797 - 5277
E-Mail: [email protected]
Media
Lars Witteck
Tel.: +49 211 797 - 2606
E-Mail: [email protected]
Wulf Klüppelholz
Tel.: +49 211 797 - 1875
E-Mail: [email protected]
Julie Cruz
Tel.: +49: 211 797 - 8551
E-Mail: [email protected]
The report for the first quarter of 2015 and other 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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07.05.2015 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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