Nov 8, 2016  Düsseldorf / Germany

Guidance for 2016 confirmed

Henkel continues its strong business performance in the third quarter

  • Sales at 4,748 million euros: organic +2.8% (nominal: +3.4%)
  • Emerging markets sales growth: organic +6.7%
  • Operating profit*: +7.6% to 837 million euros
  • Very strong EBIT margin* improvement: +70 basis points to 17.6%
  • Earnings per preferred share* (EPS): +9.2% to 1.42 euros

“Henkel continued to deliver strong business performance in the third quarter. Sales, adjusted EBIT and adjusted earnings per preferred share reached new highs. The successful development and the high quality of earnings was driven by all three business units and the strong commitment of our global team,” said Henkel CEO Hans Van Bylen.

“In the third quarter, we were also able to successfully close the acquisition of Sun Products and secure its financing at favorable conditions. This is the second largest transaction in our company history, elevating Henkel to the No. 2 position in the US laundry care market and adding a range of attractive and well-established brands to our portfolio. We are proud and glad to welcome the Sun employees to Henkel and we will now focus on the successful integration into our North American Laundry & Home Care business.”

Commenting on the current fiscal year, Hans Van Bylen said: “We expect the overall challenging and uncertain market environment to persist in 2016. We will continue to focus on leveraging our successful brands, leading market positions and strong innovation capabilities to achieve our ambitious targets.”

Guidance for 2016 confirmed

Henkel confirmed the 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 more than 16.5 percent and adjusted earnings per preferred share to grow between 8 and 11 percent,” said Hans Van Bylen.

Sales and earnings performance in the third quarter 2016

In the third quarter of 2016, Henkel’s sales reached a new high. Sales rose by 3.4 percent to 4,748 million euros. The sales performance was driven by the solid organic development as well as acquisitions. Organic sales growth – i.e. adjusted for foreign exchange and acquisitions/divestments – was at 2.8 percent. Adjusted for negative foreign exchange impact of 3.3 percent, sales increased by 6.7 percent.

Organic sales growth was driven by the solid performance of all business units. The Laundry & Home Care business unit recorded organic sales growth of 4.0 percent. The Beauty Care business unit posted an improvement in organic sales of 2.6 percent. The Adhesive Technologies business unit reported an increase in organic sales of 2.5 percent.

After allowing for one-time charges and gains and restructuring charges, adjusted operating profit (EBIT) rose by 7.6 percent from 778 million euros to 837 million euros. Reported operating profit grew by 16.4 percent from 666 million euros to 775 million euros.

Adjusted return on sales (EBIT margin) showed an increase of 0.7 percentage points to 17.6 percent. Reported return on sales rose from 14.5 percent to 16.3 percent.

Henkel’s financial result was at -15 million euros and, due to acquisitions, below the level of the prior-year quarter. The reported tax rate was at 23.2 percent; in the prior-year quarter it was at 24.6 percent.

Adjusted net income for the quarter after deducting non-controlling interests grew by 9.2 percent from 564 million euros to 616 million euros. Reported net income for the quarter increased by 18.2 percent from 494 million euros to 584 million euros. After deducting 8 million euros attributable to non-controlling interests, quarterly net income amounted to 576 million euros (prior-year quarter: 484 million euros).

Adjusted earnings per preferred share (EPS) rose by 9.2 percent from 1.30 euros to 1.42 euros. Reported EPS increased from 1.12 euros to 1.33 euros.

Net working capital related to sales improved year on year by 0.8 percentage points to 5.2 percent.

Strong business performance in the first nine months of 2016

In the first nine month of 2016, Henkel generated organic sales growth – i.e. adjusted for foreign exchange and acquisitions/divestments – of 3.0 percent, with all business units contributing. Nominally, sales increased by 1.0 percent to 13,858 million euros.

Adjusted operating profit rose by 6.9 percent from 2,253 million euros to 2,407 million euros; adjusted return on sales improved from 16.4 percent to 17.4 percent.

After deducting non-controlling interests, adjusted net income for the first nine months rose by 8.6 percent from 1,632 million euros to 1,772 million euros.

Adjusted earnings per preferred share (EPS) grew by 8.5 percent from 3.77 euros to 4.09 euros.

Effective September 30, 2016, Henkel’s net financial position showed a balance of -2,661 million euros (December 31, 2015: 335 million euros). The change compared to the end of 2015 was mainly due to payments for acquisitions and dividends paid.

Outlook for the Henkel Group in 2016 confirmed

Henkel expects to generate organic sales growth of 2 to 4 percent, with each business unit generating growth within this range. Regarding the share of sales from emerging markets, Henkel anticipates a slight decrease compared to the prior-year level due to foreign exchange effects. For adjusted return on sales (EBIT), Henkel expects an increase to more than 16.5 percent and the adjusted return on sales of each individual business unit is expected to be 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.