Henkel Reports Strong Performance in Third Quarter

Henkel CEO Hans Van Bylen stated: "As Henkel, we delivered strong performance in the third quarter. In an increasingly challenging market, we further increased our sales and earnings. All three business units contributed to this positive development. While we achieved strong organic sales growth of 3%, our nominal sales also increased by 5%." Van Bylen continued his remarks: "We achieved significant growth in earnings before interest and taxes (EBIT) margin, and our EBIT margin reached its highest level at 18%. We realized considerable growth in earnings per preferred share. Moreover, we successfully completed three acquisition projects that will substantially strengthen our business portfolio." Van Bylen said: "We anticipate that unstable and uncertain market conditions will persist. Adverse currency effects will continue to increase. Challenging conditions in consumer products markets are also expected to continue. However, we are determined to continue our successful development and implement our strategic priorities." Third Quarter 2017 Sales and Profit Performance In the third quarter of 2017, sales reached EUR 4.981 billion with nominal growth of 4.9%. Currency movements had a negative impact of 4.2% on sales.

Acquisitions and divestitures accounted for 6.1% of sales growth. Organic sales, adjusted for currency and acquisition and divestiture effects, showed strong growth of 3%.

The Adhesive Technologies business unit reported strong organic sales growth of 4.9%. The Beauty Care business unit achieved organic sales growth of 0.5%. The Laundry & Home Care business unit reported organic sales growth of 1.8%. Emerging markets again contributed above-average to the group's organic growth, showing very strong development of 5.0%. Developed markets recorded positive organic sales growth of 1.5%. Western Europe region sales remained at the same level as the prior year quarter. All other regions recorded organic sales growth: Sales in Eastern Europe rose 4.8%. Africa/Middle East reported sales growth of 3.2%. Sales in North America increased 3.2%. Latin America achieved sales growth of 2.8%, and Asia-Pacific region sales rose 6.4%. Adjusted operating profit (EBIT) increased 7.1% to EUR 897 million. All three business units contributed to this increase. Adjusted sales profit (EBIT) increased 0.4 percentage points to 18.0%. Earnings per preferred share (EPS) increased from EUR 1.42 to EUR 1.54 with growth of 8.5%. Net operating capital as a percentage of sales reached 5.6%, an increase of 0.4 percentage points compared to the same period last year. The Adhesive Technologies business unit achieved very strong organic sales growth of 4.9% in the third quarter. On a nominal basis, sales increased 4.5% to EUR 2.373 billion. Adjusted operating profit increased 5.5% to reach EUR 454 million. Adjusted sales profit rose sharply to 19.1%.