Henkel delivers strong Q2 performance

Henkel delivered a strong business performance in Q2, 2016, says Henkel CEO Hans Van Bylen.
“Adjusted earnings per preferred share grew by 8.5 percent to 1.40 euros and adjusted return on sales rose to 17.6 percent, representing new record levels for Henkel. The successful development of Henkel was driven by all three business units,” he added.
In Q2, 2016, Henkel generated organic sales growth; that is, adjusted for foreign exchange and acquisitions/divestments of 3.2 percent. Nominally, sales decreased by 0.9 percent to 4.65 billion euros due to a negative foreign exchange impact of 5.3 percent.
After allowing for one-time charges and gains and restructuring charges, adjusted operating profit (EBIT) rose by 6.6 percent from 768 million euros to 819 million euros. Reported operating profit grew by 5.8 percent from 715 million euros to 757 million euros.
Adjusted return on sales (EBIT margin) showed an increase of 1.2 percentage points to 17.6 percent. Reported return on sales rose from 15.2 percent to 16.3 percent.
Adjusted net income for the quarter after deducting non-controlling interests grew by 8.8 percent from 558 million euros to 607 million euros.
Reported net income for the quarter increased by 7.7 percent from 531 million euro to 572 million euro. After deducting 11 million euro attributable to non-controlling interests, quarterly net income amounted to 561 million euros (prior-year quarter: 521 million euros).
Adjusted earnings per preferred share (EPS) rose by 8.5 percent from 1.29 euro to 1.40 euros. Reported EPS increased from 1.20 euros to 1.30 euros. Net working capital related to sales improved year on year by 1.3 percentage points to 5.3 percent.
The Q2, 2016 saw the laundry and home care business unit extend its profitable growth path.

Henkel delivers strong Q2 performance