Despite the continuing difficult market environment, Henkel had a good start to the fiscal year 2014. Q1 sales rose 4.3% to $5.5 billion. Net income increased 13.2% to $ 634.2 million.
According to CEO Kasper Rorsted, “All our business units reported organic sales growth and improved profitability. We delivered a very strong performance in our emerging markets, while we also grew in our mature markets. However, negative foreign exchange effects had an even stronger impact on reported sales than in the previous year.”
“We do not expect the foreign exchange situation to improve in the short term,” Rorsted said, commenting on the current fiscal year. “The economic environment will remain challenging with the latest developments in Eastern Europe creating additional uncertainty in the markets. This makes it difficult to forecast economic developments for the year ahead. A high degree of agility and flexibility will remain key to success. We will therefore continue to simplify and accelerate our processes and structures.”
The Laundry & Home Care business unit posted strong organic sales growth of 6.0%. In the Beauty Care business unit, sales rose organically by a solid 3.0%. The Adhesive Technologies business unit likewise posted a solid organic sales increase of 4.1%, according to the report.
Rorsted confirmed the company outlook: “For the fiscal year 2014, we anticipate organic sales growth of 3 to 5 percent.”