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Beauty sales grew organically by 0.4%; home & laundry unit fares better.
August 16, 2018
By: Christine Esposito
Editor-in-Chief
“Driven by strong organic growth, Henkel delivered a good development in the second quarter despite significant negative currency effects and higher material prices. We increased quarterly sales to an all-time high, further improved our adjusted EBIT margin and achieved the highest quarterly adjusted earnings to date,” Henkel CEO Hans Van Bylen said in a statement when the company announced its most recent quarterly financial performance. According to Van Bylen, laundry and home care reported good growth and the development of beauty care was also positive. “We achieved organic sales growth across all regions, with a very strong performance in emerging markets and a good development in mature markets. Our North American consumer businesses returned to growth with service levels back to normal,’ he noted. At €5.14 billion, sales in the second quarter 2018 reached a new all-time high and grew nominally by 0.9% compared to the prior-year quarter. Organic sales, which exclude the impact of currency effects and acquisitions/divestments, showed a strong increase of 3.5%. The contribution from acquisitions and divestments amounted to 3.5%. This results in a growth of 7%, according to the company. Currency effects had a negative impact of -6.1% on sales. In the beauty care business unit, sales grew organically by 0.4 %. Nominally, sales increased by 3.8 percent to 1,035 million euros. Adjusted operating profit grew by 4.4 % and reached €187 million. Adjusted return on sales improved by 0.1 percentage points to 18.1% The laundry and home care business unit generated good organic sales growth of 2.9% in the second quarter. Nominally, sales amounted to €1.64 million after €1.7 million in the prior-year quarter. At €295 million, adjusted operating profit was 1.0% below the level of the second quarter 2017. Adjusted return on sales grew by 0.4 percentage points to 17.9%. In the first half of 2018, Henkel generated sales of €9.978 million. Organic sales growth, which excludes the impact of currency effects and acquisitions/divestments, was at 2.3%. Foreign exchange effects reduced sales by -7.4%
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