The positive effect from acquisitions and divestments amounted to 4.0%, mainly as a result of acquiring The Sun Products Corporation. Organic sales, which exclude the impact of foreign exchange and acquisitions/divestments, showed a solid increase of 3.1%.
All business units reported solid organic sales growth, according to Henkel. Sales in the Beauty Care business unit grew organically by 2.1% and the Laundry & Home Care business unit recorded organic sales growth of 4.7%.
“2016 was a very successful year for Henkel. In a challenging market environment, we achieved again new record levels for sales and earnings and met our financial targets for the fiscal year. We delivered a high quality of earnings. For the first time we reached an adjusted operating profit of more than 3 billion euros,” said Henkel CEO Hans Van Bylen. “In September, we closed the acquisition of Sun Products, which was the second-largest transaction in our company’s history. This marks a major step for Henkel and substantially strengthens our Laundry & Home Care business in North America. In November, we presented our new ambitions and strategic priorities for 2020 and beyond. Based on our strong foundation, our excellent results in 2016 and our clear priorities for the coming years, we are committed to continue our successful development in the future.”
Looking at the current fiscal year 2017, Van Bylen said he expected organic sales growth of 2-4%.
We expect the highly volatile and uncertain market environment to continue. Nevertheless, based on our clear strategic direction, our strong global team and our innovative brands and technologies with leading market positions, we are well-positioned for further profitable growth.”