BERLIN — Henkel AG registered a 48.7 percent rise in fourth-quarter 2015 profits, bolstered by growth in all business segments and weaker profits in the comparable quarter due to restructuring and marketing costs.
Total net income for the Düsseldorf-based maker of Schwarzkopf, Dial and Loctite adhesives advanced 48.7 percent to 461 million euros, or $504.9 million.
After deducting non-controlling interests, the firm’s adjusted net income gained 9.8 percent to 480 million euros, or $525.7 million. Adjusted operating profit was up 11.3 percent to 670 million euros, or $733.8 million, for the three months ended Dec. 31.
Quarterly group sales improved 6 percent to 4.37 billion euros, or $4.79 billion. On an organic basis, revenues were up 2.9 percent.
Related Articles
Dollar figures are calculated at average exchange for the period to which they refer.
You May Also Like
Henkel reported a rise in full-year net income of 18.4 percent to 1.97 billion euros, or $2.19 billion. Adjusted operating profit increased 12.9 percent to 2.92 billion euros, or $3.24 billion. All three business units contributed to the positive annual performance, the company said.
Total group sales rose 10.1 percent to 18.09 billion euros, or $20.08 billion, driven by currency development and positive effects from acquisitions and divestments, according to Henkel. In organic terms, full-year sales increased 3 percent.
Henkel’s top brands, Persil, Schwarzkopf and Loctite, generated combined sales of 5.9 billion euros, or $6.55 billion. Both Persil and Schwarzkopf were successfully launched in the U.S. last year.
Adjusted operating profit for Henkel’s beauty care division gained 12.2 percent to 610 million euros, or $677.2 million, the highest result to date for the business.
Sales for the division rose 8.1 percent to 3.83 billion euros, or $4.25 billion. The unit’s organic sales were up 2.1 percent.
“Emerging markets continued to be the main growth drivers contributing to our good performance,” commented Kasper Rorsted, Henkel’s outgoing chief executive officer. “We also achieved further organic sales growth in mature markets.”
As reported, Rorsted will head to Adidas at the end of April, and his successor on May 1 is Hans Van Bylen, currently executive vice president of Henkel beauty care. Van Bylen’s position will be assumed by Pascal Houdayer, of the company’s laundry and home care division.
Henkel also released its 25th sustainability report on Thursday. Between 2011 and 2015, the company achieved its targets on the way to fulfilling its long-term sustainability strategy for 2030, including increasing energy efficiency by 18 percent and reducing waste volume by 17 percent, while raising sales by 11 percent.
Looking to fiscal year 2016, Henkel said it expects to generate organic sales growth of 2 percent to 4 percent, an adjusted EBIT rise of 16.5 percent, and adjusted earnings per share between 8 percent and 11 percent.