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Henkel Posts Sales of +€4,028 Million for Q3 2011
Posted: November 9, 2011
Henkel’s sales in the third quarter of 2011 increased to €4,028 million, a rise of 1.7% compared with the prior-year quarter. After adjusting for foreign exchange, sales improved by 5.7%. At 6.5%, organic sales, which exclude the impact of foreign exchange and acquisitions/divestments, again showed a strong increase.
“Henkel continued its solid performance in the third quarter. Despite the challenging market environment, we outperformed once again our relevant markets in terms of organic sales growth,” said Henkel CEO Kasper Rorsted. “All our business sectors contributed to this growth, and with further double-digit increases in our growth regions, we improved their share to 43% of our total sales. Despite higher raw material prices, we managed to improve profitability in all our business sectors.”
For the full fiscal year 2011, Rorsted provided the following guidance, “The economic environment remains challenging. In addition to intense competition and high raw material prices, the debt crisis in the Eurozone is bringing additional uncertainty into the markets. Against this background, we will continue to adapt our structures in order to respond more quickly and flexibly to changes in our markets, and maintain strict cost control.” Henkel also slightly raised its guidance for organic sales growth in 2011. “We now expect organic sales growth for the full fiscal year to be between 5–6%,” Rorsted added.
All three of the company's business sectors contributed to this positive performance and were able to expand globally for the company. The laundry and home care and adhesive technologies divisions registered organic growth of 3.8% and 8.7%, respectively, while its cosmetics and toiletries division achieved 5.8% organic sales growth through volume increases. Despite the persistently difficult and intensely competitive market environment, the cosmetic and toiletries business sector was able to further expand its market shares, and sales totaled €860 million, 1.9% above the figure for the prior-year quarter.
Sales increases were reported in each of the company’s regions. The strongest rises and another double-digit growth rate were registered in the growth markets of Eastern Europe, Africa/Middle East, Latin America and Asia (excluding Japan). Development in China was particularly dynamic with a strong core business and numerous new product launches. Sales growth was also achieved in the mature markets. Aside from substantial sales increases in Western Europe, there were also positive developments in North America, with expansion in the company’s business there outpacing the relevant markets.