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Henkel Q1 organic sales showed increase of 4 percent

Staff Writer |
At 5,064 million euros, Henkel sales in the first quarter 2017 reached a new record level and grew nominally by 13.6 percent compared to the prior-year quarter.

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Positive foreign exchange effects accounted for 1.1 percent of this growth. The contribution from acquisitions and divestments amounted to 8.5 percent, mainly as a result of the acquisition of The Sun Products Corporation.

Organic sales, which exclude the impact of foreign exchange effects and acquisitions/divestments, showed a strong increase of 4 percent.

Organic sales growth was driven by all business units. The Adhesive Technologies business unit reported a very strong increase in organic sales of 5.5 percent.

The Beauty Care business unit posted good organic sales growth of 2.3 percent. The Laundry & Home Care business unit recorded a strong increase in organic sales of 3.0 percent.

The emerging markets again made an above-average contribution to the organic growth of the Group, with a very strong increase in organic sales of 6.7 percent, while the mature markets registered good organic sales growth of 2.1 percent.

Henkel reported organic sales growth across all regions: Sales in Western Europe grew by 1.8 percent.

Eastern Europe achieved growth of 4.4 percent. In Africa/Middle East, sales grew by 2.2 percent. Sales in the North America region increased by 2.9 percent. Latin America achieved growth of 8.2 percent and in the Asia-Pacific region sales grew by 9.1 percent.

Adjusted operating profit (EBIT) improved by 13.8 percent to 854 million euros. All three business units contributed to this positive performance.

Adjusted return on sales (EBIT) rose by 0.1 percentage points to 16.9 percent.

Adjusted earnings per preferred share grew by 11.0 percent from 1.27 euros to 1.41 euros.

Net working capital as a percentage of sales improved by 0.5 percentage points to 4.9 percent.

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