Henkel achieves new highs in sales and earnings

Updated 15 March 2018
0

Henkel achieves new highs in sales and earnings

Henkel has reconfirmed its financial ambitions for 2020 — organic sales growth of 2 to 4 percent, continued increase in adjusted EBIT margin, and adjusted EPS growth of 7 to 9 percent — and provided its outlook for 2018. This is based on the strong performance in 2017 and substantial progress made in the implementation of the strategic priorities.
“2017 was a successful year for Henkel. Despite challenging and volatile market conditions, we reached new record levels in sales and earnings and achieved our financial targets for the year. This strong performance was driven by our engaged and passionate global team. For the first time, we exceeded annual sales of €20 billion ($20.81 billion). We also achieved record margins and new highs in earnings per share — in line with our commitment to deliver sustainable profitable growth,” said Henkel CEO Hans Van Bylen.
“We focused on the implementation of our strategic priorities and achieved substantial progress with many key initiatives and projects. In the course of the year, we also made several attractive acquisitions which will complement and further strengthen our portfolio.”
For 2018, Henkel expects to generate organic sales growth of 2 to 4 percent with each business unit in this range. For adjusted return on sales (EBIT), Henkel anticipates an increase to more than 17.5 percent with all three business units contributing. Reflecting the uncertainties in the currency markets, especially the US dollar trend, Henkel expects an increase in adjusted earnings per preferred share in euro of between 5 and 8 percent.
“Going forward, we will continue to focus on sustainable profitable growth with attractive returns. We are committed to deliver on our financial ambition 2020,” said CEO Bylen.
In the fiscal year 2017, sales exceeded €20 billion for the first time and increased by 7 percent to €20,029 million. Foreign exchange movements had an overall negative effect of 2 percent on sales. Acquisitions and divestments accounted for 5.9 percent of sales growth. Organic sales, which exclude the impact of foreign exchange effects and acquisitions/divestments, showed a strong increase of 3.1 percent. This improvement is in line with the full year guidance of 2 to 4 percent organic sales growth.


Mobily quarterly loss down by 49%

Updated 26 April 2018
0

Mobily quarterly loss down by 49%

Saudi telecom provider Mobily decreased its quarterly losses in Q1 2018 by 49 percent to SR93 million ($24.84 million) compared with SR182 million in Q4 2017. This was mainly due to a growth of revenues driven by a better mix of products mainly from data, the increase of efficiency in managing operational expenses, the impact of implementing IFRS 9 and 15, and the reversal of certain provisions that are no longer required, according to the company.

Revenues improved for the second consecutive quarter reaching SR2,833 million in Q1 2018 compared with SR2,827 million in Q4 2017, a slight increase of 0.2 percent, despite the following:

l The impact on sales at the beginning of the year due to the implementation of the value-added tax (VAT). 

l The reduction in interconnection rates by 45 percent.

l The seasonality of handset sales, and its increase in Q4 2017.

l The seasonal decrease related to the number of days in Q1. 

Without the decrease of the interconnection rates, revenues would have grown by 2 percent.

Mobily’s gross profit increased in Q1 2018 by 6.6 percent to SR1,663 million compared with SR1,560 million in Q4 2017. This increase is mainly due to the reduction in interconnection rates during Q1 2018 compared with those of Q4 2017 and the reduction in equipment costs in Q1 2018 compared with Q4 2017.

Mobily managed to grow its revenues for the second consecutive quarter. Q1 2018 revenues slightly decreased by one percent (SR33 million) to SR2,833 million compared with SR2,865 million in Q1 2017. Mobily achieved a stable level in revenues despite the general economic and regulatory changes, including the impact on sales in the beginning of the year due to the implementation of VAT, and the reduction in interconnection rates by 45 percent.

Without the decrease of the interconnection rates, the revenues would have grown by one percent year over year.

The gross profit stabilized at SR1,663 million in Q1 2018 compared to SR1,665 million in Q1 2017 with a slight decrease by 0.12 percent, despite the slight decrease in revenues.