German consumer goods giant Henkel has posted an organic sales growth of 2.4% in FY 2018.
Operating profit for the fiscal year increased by 1% €3,496 million, a new high for the company.
Growth Drivers
Organic sales growth was driven by strong performance in its adhesive technologies unit, which grew by 4%.
The company's laundry and home care business registered organic sales growth of 1.9%, while it dropped by 0.7% in the beauty care segment.
'Good Business Performance'
Henkel chief executive, Hans Van Bylen, said, "The overall good business performance was once again driven by our successful brands and innovative technologies with leading positions in highly attractive markets and categories.
"Our profitable growth was complemented by the contributions from acquisitions in our industrial and consumer goods businesses."
Outlook 2019
The company expects organic sales to grow between 2% and 4% in the current fiscal year.
Van Bylen added, "We have a clear strategy and pursue ambitious targets. With our increased investments in brands, technologies, innovations, and digitalisation, we are emphasising our commitment to deliver sustainable profitable growth."
In January of this year, the company said that it plans to spend an extra €300 million a year to boost its online operations, and brands such as Schwarzkopf shampoo and Persil detergent would hit earnings this year.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
