BERLIN – Henkel AG & Co. registered fourth-quarter 2014 total net income of 310 million euros, or $387.2 million, a 3.4 percent decline.
Adjusted net income rose 6.6 percent to 437 million euros, or $545.7 million, in the period.
In its annual report released on Wednesday, the Düsseldorf-based maker of Schwarzkopf, Dial and Loctite adhesives reported adjusted operating profit (EBIT) up 3.1 percent to 602 million euros, or $751.8 million. Quarterly group sales increased 7.1 percent to 4.13 billion euros, or $5.16 billion.
Dollar figures are calculated at average exchange for the periods in question.
Henkel’s full-year net income rose 2.3 percent to 1.66 billion euros, or $2.21 billion. Adjusted operating profit increased 2.9 percent to 2.59 billion euros, or $3.55 billion.
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Henkel’s top three brands, Persil, Schwarzkopf and Loctite, generated sales of 5 billion euros, or $6.65 billion. Total group sales for 2014 were 16.43 billion euros, or $21.84 billion, up 0.5 percent or a rise of 4.4 percent when adjusted for negative foreign-exchange effects. Emerging markets contributed 44 percent of group sales.
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Henkel’s beauty-care division, which accounts for 22 percent of company revenues, posted full-year sales of 3.55 billion euros, or $4.71 billion, up 1 percent. On an organic basis, revenues registered an uptick of 2 percent. EBIT for the division grew 4.8 percent to 749 million euros, or $995.6 million.
“The economic environment remains challenging and very volatile,” stated Henkel chief executive officer Kaspar Rorsted, who singled out the conflict between Russia and Ukraine specifically, and the region’s devalued currencies. “We will continue to adapt our processes and structures, making us more flexible and efficient. We are focused on implementing our strategy in order to reach our ambitious financial targets for 2016.”
For 2015, Henkel anticipates organic sales growth of 3 percent to 5 percent, its EBIT to rise to nearly 16 percent and an increase in adjusted earnings per share of about 10 percent.