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Henkel Delivers on 2013 Financial Targets
Posted: February 20, 2014
Announcing its 2013 financial results, Henkel reported that delivered on its 2013 financial targets. Organic sales grew 3.5%, and sales impacted by foreign exchange effects were down 0.9%. Adjusted operating profit was €2.5 billion, a 7.8% increase.
"2013 was a very successful year for Henkel. Despite a challenging and highly competitive market environment, we achieved our financial targets and made significant progress in implementing our strategy 2016,” said Henkel CEO Kasper Rorsted. “We achieved profitable growth and increased market share in all our business units. All regions contributed to the solid organic sales growth. As in previous years, emerging markets showed a very strong development. In these countries, however, foreign exchange effects had a stronger impact on reported sales.”
Looking at the fiscal year 2014, Rorsted said, “The economic environment remains challenging, and we expect persisting foreign exchange effects, particularly in the first half of the year. Thus, we will continue to further simplify and improve our processes and structures, making us more flexible and more efficient. We are focused on implementing our strategy in order to deliver on our ambitious financial targets for 2016.”
“For the full fiscal year 2014 we expect organic sales growth to be between 3–5%. We expect our adjusted EBIT margin to increase to around 15.5% and adjusted earnings per preferred share to increase in the high single digits,” Rorsted said, summarizing the financial targets for 2014.
At €16.35 billion, sales in the fiscal year 2013 remained slightly below the prior-year level. However, organic sales growth, which excludes the impact of foreign exchange and acquisitions/divestments, reached a solid 3.5%. This growth was driven by both price and volume, with the rate of increase accelerating in the course of the year. Organic growth in the first half year amounted to 3.2%, rising to 3.8% in the second half.
In all business units, sales rose organically and market shares increased further in relevant markets. Solid organic sales growth of 3% was achieved by the beauty care business unit.
And overall, adjusted net income after deducting non-controlling interests rose by 12.1%, from €1.5 billion to €1.7 billion. Reported net income increased by 6.5%, from €1.5 billion in the previous year to €1.62 billion.