Henkel Boosts Profit Margin and Earnings Per Share (EPS) While Posting Positive Organic Sales Growth

Düsseldorf – Henkel CEO Hans Van Bylen stated, "Despite distribution challenges we have experienced in our North American consumer business units, Henkel showed positive progress in the first quarter. We achieved organic sales growth and further increased our earnings before interest and taxes (EBIT) margin. Despite significant negative currency effects, we increased earnings per share. Based on this performance, we are confirming our outlook for the 2018 financial year. We are committed to continuing this profitable growth." Van Bylen continued, "In the first quarter, we faced an extraordinary negative currency effect that impacted our reported sales by 8.6 percent, or approximately EUR 440 million. Similarly, our operating profit and earnings per share were also affected by unfavorable currency movements." Hans Van Bylen continued his remarks, "We achieved very strong organic sales growth in the Adhesive Technologies business unit. On the other hand, due to distribution difficulties in our North American consumer business units reported in March, we obtained sales below the prior year level in the Laundry & Home Care and Beauty Care business units." He added, "In the second quarter, we are making progress toward a return to normal service levels."

Sales and Profit Performance in the First Quarter of 2018

In the first quarter of 2018, sales reached EUR 4.835 billion. Organic sales, adjusted for currency effects and the impact of acquisitions and disposals, grew by 1.1 percent. The negative currency effect on sales was 8.6 percent. The contribution from acquisitions and disposals was 3.0 percent. On a nominal basis, sales were 4.5 percent below the first quarter of the prior year. The Adhesive Technologies business unit reported strong organic sales growth of 4.7 percent. Due to distribution difficulties in the North American consumer business units, sales in the Beauty Care business unit were organically 4.3 percent below the first quarter of the prior year. The Laundry & Home Care business unit recorded negative organic sales growth of 0.7 percent. Emerging markets contributed above-average to the Group's organic growth with very strong organic sales growth of 6.9 percent. In developed markets, due to distribution difficulties in the North American consumer business units, negative organic sales growth of 2.8 percent was recorded. Sales in Western Europe showed organic growth of 0.2 percent. Eastern Europe achieved organic growth of 7.6 percent. Sales in Africa/Middle East experienced organic growth of 8.6 percent. Due to distribution difficulties in the consumer business units, sales in the North American region declined organically by 6.5 percent. Latin America achieved organic growth of 7.3 percent, while the Asia-Pacific region saw organic sales growth of 4.2 percent.