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Henkel Reports Strong 2010 Financials

Posted: February 28, 2011

Henkel delivered record results in 2010, as noted in the company’s recently released Q4 and full year 2010 financial reports. It saw sales increase by 11.2% to €15.1 million, and organic sales grew 7%.

“2010 was an excellent year for Henkel. For the first time, we closed a financial year with an adjusted EBIT margin above 12%,” said Henkel CEO Kasper Rorsted. “We have improved the market positions of all our business sectors and have further strengthened our top brands. We have also been able to further expand our positions in the emerging markets. With these strong results, we are well on track to achieving our 2012 financial targets.”

Looking forward to fiscal 2011, Rorsted said, “The economic conditions remain challenging, especially in view of the highly competitive environment in which we operate, and rising raw material costs. We will continue to respond quickly and decisively to changes in our markets and continue the transformation process in our company. We are confident that we will once again outperform our markets in 2011 and expect to achieve organic growth of between 3–5%.”

Henkel’s sales in fiscal 2010 were €15,092 million euros, an increase of 11.2% versus the prior-year figure. After adjusting for foreign exchange, sales improved by 6.4%. In organic terms, i.e. adjusted for both foreign exchange and acquisitions/divestments, sales grew by 7%, a relatively strong growth after 2009 which was impacted by the financial crisis. This strong performance was supported by all Henkel business sectors.

The cosmetics/toiletries business sector continued its encouraging growth trend, registering organic growth of 4.8% and thus substantially outperforming the market. The division increased its sales by 8.6%, to €3,269 million.