Dusseldorf, Germany – Laundry and personal care products-to-reactive polyurethane systems company, Henkel saw sales reach EUR 10 bn for the first time in H1 2017.
Henkel breaches EUR 10 bn H1 sales for first time
Operating profit rose by 12.3% to EUR 1.76 bn in the half compared to EUR 1.6 bn in the first half of 2016.
Looking to the full year result, Hans van Bylan, CEO said ‘we expect an overall volatile and uncertain market environment throughout the year. We confirm our guidance. We expect organic sales growth of 2 to 4%, we expect our adjusted ebit margin to increase greater than 17% and adjusted earnings per share to grow.’
The firm's adhesive technologies business grew 5.2% in sales terms to EUR 4.7 bn up from EUR 4.4 bn in the first half of 2016. The division made a profit of EUR 877 m up 14.4% on the EUR 766 m recorded in the first half of 2016. Return on sales grew to 18.6%, up 0.5% on the 2016 number, while return on capital employed increased from 19.7% in the first half of 2016 to 22.3% in the first half of 2017.
The firm said emerging markets such as Latin America which saw ‘significant sales growth’. In eastern Europe, sales were also very strong although there was a decline in sales in Africa/East, this was offset by growth in Asia outside Japan.