Consumer goods firm Henkel, which owns the Persil and Loctite brands among others, has posted sales above the €5 billion mark in a quarter for the first time.
Sales in the group’s first quarter totalled €5.064 billion, following organic growth of 4.0% and nominal growth of 13.6%.
The contribution from acquisitions and investments to its performance was 8.5%, largely due to the acquisition of The Sun Products Corporation.
The group also posted a double digit growth in operating profit for the period, up 13.8% to €854 million, however this was adjusted for one-time charges/gains and restructuring charges.
Strong Performance
“Henkel delivered a strong performance in the first quarter in a highly challenging market environment,” said chief executive Hans van Bylen.
“The consumer goods markets were characterised by intensifying promotional and pricing pressure. We were able to significantly increase sales and earnings and to further grow adjusted return on sales. For the first time, quarterly sales exceeded 5 billion euros. Adjusted operating profit also reached a new high. All three business units and all regions contributed to the successful development and the high quality of earnings.”
Sales grew across all the group’s regional divisions - in Western Europe, sales were up 1.8%, while in Eastern Europe, sales rose by 4.4%. Africa/Middle East (+2.2%), North America (+2.9%), Latin America (+8.2%) and Asia-Pacific (9.1%) also saw growth.
Looking Ahead
Looking ahead to the coming year, van Bylen added, “We expect the overall volatile and uncertain market environment to persist throughout the year. Currency fluctuations are likely to continue and the prices for commodities are expected to increase."
He added that the company also "anticipate(s) promotional and pricing pressure in the consumer goods markets to further increase. Nevertheless, we are committed to continue our successful development.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up for ESM: The European Supermarket Magazine.
