Henkel, a leading manufacturer of consumer goods and adhesives technologies, has achieved an increase in second quarter sales of up to 13.5 per cent.

The rise in figures was driven by various factors such as solid organic sales growth, acquisitions from the previous year and, above all, the strong US dollar, said a statement from the company.

Henkel’s Laundry & Home Care business unit recorded solid organic sales growth of 4.3 per cent, while the Beauty Care business unit a positive increase in organic sales of 1.9 per cent was achieved, and the Adhesive Technologies business unit posted a positive improvement in organic sales of 1.7 per cent, it added.

Reported operating profit (EBIT) grew by 21.4 per cent, from €589 million ($668 million) to €715 million ($811 million). Adjusted net income for the quarter, after deducting non-controlling interests, increased by 11.8 per cent from €499 million ($566 million) to €558 million ($633 million). Reported net income for the quarter grew by 19.1 per cent from €446 million ($505 million) to €531 million ($602 million).

The Laundry & Home Care business unit’s sales growth was mainly driven by the performance in the emerging markets, which again showed a very strong development. Africa/Middle East recorded solid growth.

Adjusted operating profit of the Beauty Care business unit rose significantly versus the prior-year quarter, by 14.7 per cent to €166 million ($188 million). Adjusted return on sales improved by 0.3 percentage points to reach 16.5 per cent for the first time. Reported operating profit grew by 17.6 per cent to €158 million ($179 million). The business unit’s successful development in the emerging markets continued with very strong organic sales growth Africa/Middle East recorded positive organic sales growth.

The Adjusted operating profit of Adhesive Technologies business unit increased by 9.9 per cent to €398 million ($451 million). The emerging markets showed a solid organic sales growth rate. Africa/Middle East recorded very strong growth.

Henkel’s sales in Africa/Middle East rose from €287 million ($325 million) to €342 million ($387 million). Although the political situation in some countries continued to affect growth, organic sales increased by 4.4 per cent. In the emerging markets of Eastern Europe, Africa/Middle East, Latin America and Asia (excluding Japan), sales grew significantly, by 11 per cent to €2.047 billion ($2.32 billion). Driven by all business units, organic sales grew by 5.1 per cent and again made an above-average contribution to the organic growth of the Henkel Group.

Kasper Rorsted, CEO, Henkel, said: “Organic sales in emerging markets were strong, once again making an above-average contribution to growth.” – TradeArabia News Service