Henkel reported a strong increase in sales and earnings for the second quarter of 2012. Sales rose 6.4% to €4,206 million (organic growth of 4%), and emerging markets were again primary success drivers, with organic sales up 8.1%.
“Henkel continued its good performance in the second quarter, despite a difficult market environment. We generated profitable growth in all our business sectors and posted a substantial increase in our EBIT margin,” said Henkel CEO Kasper Rorsted. “The solid results achieved in the second quarter also reflect our persistent focus on our strategic priorities. We have thus taken an important step towards achieving our targets for 2012.”
Looking at the full fiscal year 2012, Rorsted said, “We expect that the very volatile environment with uncertainties in our markets will persist. In particular, the effects of the debt and financial crises in a number of countries will continue to be a challenge. Hence, we will continue to analyze, adapt and further improve our processes and structures.”
All three business sectors contributed to the company’s positive development: Laundry & Home Care registered strong organic growth of 5.1%; organic sales growth at the Cosmetics/Toiletries business sector reached a solid 2.8%; and the Adhesive Technologies business sector also generated solid organic sales growth amounting to 3.6%.
The Cosmetics/Toiletries business sector continued its uptrend in profitable growth during the second quarter. Nominal sales totaled €921 million, 4.5% above the €881 million generated in the prior-year quarter, while organic sales rose by 2.8%. Growth was supported by all regions, albeit with the emerging markets continuing to show the strongest dynamics. The regions of Africa/Middle East and Asia (excluding Japan) delivered double-digit growth rates, with sales in Eastern Europe and Latin America likewise developing positively. Bucking the adverse economic conditions prevailing in the mature markets, the company generated solid sales growth in Western Europe and also posted a positive sales performance in North America.
Adjusted operating profit increased by 7.1% to €133 million. At 14.4%, adjusted return on sales rose by 0.3 percentage points compared to the second quarter of 2011. Reported operating profit was at €131 million following €140 million in the prior-year quarter, this latter figure having included a one-time gain from the disposal of the branded consumer goods business in India.