At 18,714 million euros, Henkel sales in the fiscal year 2016 reached a new record level and grew by 3.5 percent compared to the previous year.
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Adjusted for foreign exchange effects, sales grew by 7.1 percent. The positive effect from acquisitions and divestments amounted to 4.0 percent, mainly as a result of acquiring The Sun Products Corporation.
Organic sales, which exclude the impact of foreign exchange and acquisitions/divestments, showed a solid increase of 3.1 percent.
All business units reported solid organic sales growth. The Adhesive Technologies business unit achieved organic sales growth of 2.8 percent.
Sales in the Beauty Care business unit grew organically by 2.1 percent and the Laundry & Home Care business unit recorded organic sales growth of 4.7 percent.
After allowing for one-time charges, one-time gains and restructuring charges, adjusted operating profit (EBIT) improved by 8.5 percent to a new high of 3,172 million euros (previous year: 2,923 million euros).
All three business units contributed to this positive performance. Reported operating profit (EBIT) amounted to 2,775 million euros compared to 2,645 million euros in the previous year.
Adjusted return on sales (EBIT margin) rose by 0.7 percentage points from 16.2 percent to 16.9 percent, reaching a new record level. Reported return on sales increased by 0.2 percentage points to 14.8 percent (previous year: 14.6 percent).
The financial result improved from -42 million euros to -33 million euros. The financing costs relating to the acquisition of The Sun Products Corporation were more than offset by the positive effects from the repayment of the hybrid bond.
Adjusted net income for the year after non-controlling interests increased by 10.0 percent to 2,323 million euros (2015: 2,112 million euros).
After deducting 40 million euros attributable to non-controlling interests, reported net income increased by 6.9 percent from 1,921 million euros to 2,053 million euros.
Adjusted earnings per preferred share grew by 9.8 percent from 4.88 euros to 5.36 euros and reached a new record level. Reported earnings per preferred share rose from 4.44 euros to 4.74 euros. ■