GERMANY: Henkel Reports Solid FY Growth

Henkel has reported a solid set of figures for its last fiscal year, helped by an improved performance in emerging markets.

For 2016, sales were up 3.5% to 18.7bn (+3.1% organic basis), while adjusted operating profit was up 8.5% to €3.2bn, and adjusted operating margin rose by 70bps to 16.9%.

The group’s Beauty Care business saw sales grow by 2.1% on an organic basis, while the Laundry & Home care unit recorded a 4.7% increase, even as the Adhesive Technologies unit saw a sales rise of 2.8%.

Henkel said it expects sales in 2017 to grow by 2%-4% on an organic basis, while adjusted profit is expected to be more than 17%.  CEO Hans van Bylen noted: “We expect the highly volatile and uncertain market environment to continue. Nevertheless, based on our clear strategic direction, our strong global team and our innovative brands and technologies with leading market positions, we are well positioned for further profitable growth.”