With regard to the current fiscal year, Van Bylen stated: “We expect the overall challenging market environment to continue in 2016 – with only moderate global economic growth, high uncertainties in the markets and unfavorable foreign exchange developments. We will therefore focus on leveraging our strong brands, our leading market positions and our innovation capabilities to achieve our ambitious targets.”
Guidance for 2016 confirmed
Van Bylen confirmed Henkel’s outlook for the current fiscal year: “For the full fiscal year 2016, we expect organic sales growth of 2 to 4 percent. We expect our adjusted EBIT margin to rise to approximately 16.5 percent and adjusted earnings per preferred share to grow between 8 and 11 percent.”
Sales and profit performance in the first quarter 2016
In the first quarter of 2016,salesincreased by 0.6 percent to 4,456 million euros. Adjusted for negative foreign exchange effects of 3.4 percent, sales improved by 4.0 percent. Organically – i.e. adjusted for foreign exchange and acquisitions/ divestments – sales rose by 2.9 percent.
The Laundry & Home Care business unit recorded solid organic sales growth of 4.7 percent. The Beauty Care business unit achieved a solid increase in organic sales of 2.6 percent. The Adhesive Technologies business unit likewise posted a solid improvement in organic sales of 2.1 percent.
After one-time gains, one-time charges and restructuring charges, adjusted operating profit(EBIT) rose by 6.2 percent from 707 million euros to 751 million euros. Reported operating profit grew by 10.7 percent from 648 million euros to 717 million euros.
Adjusted return on sales (EBIT margin) increased by a very strong 0.8 percentage points to 16.8 percent. Reported return on sales rose from 14.6 percent to 16.1 percent.
Henkel’s financial resultimproved by 2 million euros to -7 million euros. This was attributable in particular to the repayment of the hybrid bond in November 2015. The tax rate amounted to 24.2 percent compared to 24.6 percent in the prior-year quarter.
Adjusted net income for the quarter after deducting non-controlling interests grew by 7.6 percent from 510 million euros to 549 million euros. Reported net income for the quarter increased by 11.6 percent from 482 million euros to 538 million euros. After deducting 13 million euros attributable to non-controlling interests, net income increased to 525 million euros (prior-year quarter: 470 million euros).
Adjusted earnings per preferred share (EPS) rose by 7.6 percent from 1.18 euros to 1.27 euros. Reported EPS increased from 1.09 euros to 1.21 euros.
Net working capital as a percentage of sales improved by 0.8 percentage points to 5.4 percent, due mainly to foreign exchange effects and lower inventories.
Henkel’s net financial position as of March 31, 2016, was 452 million euros. Effective December 31, 2015, it amounted to 335 million euros.
Outlook for the Henkel Group in 2016
Henkel expects to generate organic sales growth of 2 to 4 percent in the fiscal year 2016. Henkel expects that each business unit will generate growth within this range. Henkel furthermore expects a slight increase in the share of sales from its emerging markets. For adjusted return on sales (EBIT), Henkel expects an increase versus the prior year to approximately 16.5 percent. The adjusted return on sales of the individual business units is expected to be at or above the level of the previous year. Henkel expects an increase in adjusted earnings per preferred share of between 8 and 11 percent.
* Adjusted for one-time charges/gains and restructuring charges.
This document contains forward-looking statements which are based on the current estimates and assumptions made by the corporate management of Henkel AG & Co. KGaA. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate, forecast and similar formulations. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by Henkel AG & Co. KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from forward-looking statements. Many of these factors are outside Henkel’s control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update forward-looking statements.
source: henkel.com
Guidance for 2016 confirmed
Van Bylen confirmed Henkel’s outlook for the current fiscal year: “For the full fiscal year 2016, we expect organic sales growth of 2 to 4 percent. We expect our adjusted EBIT margin to rise to approximately 16.5 percent and adjusted earnings per preferred share to grow between 8 and 11 percent.”
Sales and profit performance in the first quarter 2016
In the first quarter of 2016,salesincreased by 0.6 percent to 4,456 million euros. Adjusted for negative foreign exchange effects of 3.4 percent, sales improved by 4.0 percent. Organically – i.e. adjusted for foreign exchange and acquisitions/ divestments – sales rose by 2.9 percent.
The Laundry & Home Care business unit recorded solid organic sales growth of 4.7 percent. The Beauty Care business unit achieved a solid increase in organic sales of 2.6 percent. The Adhesive Technologies business unit likewise posted a solid improvement in organic sales of 2.1 percent.
After one-time gains, one-time charges and restructuring charges, adjusted operating profit(EBIT) rose by 6.2 percent from 707 million euros to 751 million euros. Reported operating profit grew by 10.7 percent from 648 million euros to 717 million euros.
Adjusted return on sales (EBIT margin) increased by a very strong 0.8 percentage points to 16.8 percent. Reported return on sales rose from 14.6 percent to 16.1 percent.
Henkel’s financial resultimproved by 2 million euros to -7 million euros. This was attributable in particular to the repayment of the hybrid bond in November 2015. The tax rate amounted to 24.2 percent compared to 24.6 percent in the prior-year quarter.
Adjusted net income for the quarter after deducting non-controlling interests grew by 7.6 percent from 510 million euros to 549 million euros. Reported net income for the quarter increased by 11.6 percent from 482 million euros to 538 million euros. After deducting 13 million euros attributable to non-controlling interests, net income increased to 525 million euros (prior-year quarter: 470 million euros).
Adjusted earnings per preferred share (EPS) rose by 7.6 percent from 1.18 euros to 1.27 euros. Reported EPS increased from 1.09 euros to 1.21 euros.
Net working capital as a percentage of sales improved by 0.8 percentage points to 5.4 percent, due mainly to foreign exchange effects and lower inventories.
Henkel’s net financial position as of March 31, 2016, was 452 million euros. Effective December 31, 2015, it amounted to 335 million euros.
Outlook for the Henkel Group in 2016
Henkel expects to generate organic sales growth of 2 to 4 percent in the fiscal year 2016. Henkel expects that each business unit will generate growth within this range. Henkel furthermore expects a slight increase in the share of sales from its emerging markets. For adjusted return on sales (EBIT), Henkel expects an increase versus the prior year to approximately 16.5 percent. The adjusted return on sales of the individual business units is expected to be at or above the level of the previous year. Henkel expects an increase in adjusted earnings per preferred share of between 8 and 11 percent.
* Adjusted for one-time charges/gains and restructuring charges.
This document contains forward-looking statements which are based on the current estimates and assumptions made by the corporate management of Henkel AG & Co. KGaA. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate, forecast and similar formulations. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by Henkel AG & Co. KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from forward-looking statements. Many of these factors are outside Henkel’s control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update forward-looking statements.
source: henkel.com
