In the first quarter of 2016, Henkel sales increased by 0.6 percent to 4,456 million euros. Adjusted for negative foreign exchange effects of 3.4 percent, sales improved by 4.0 percent.
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Organically – i.e. adjusted for foreign exchange and acquisitions/ divestments – sales rose by 2.9 percent.
The Laundry & Home Care business unit recorded solid organic sales growth of 4.7 percent. The Beauty Care business unit achieved a solid increase in organic sales of 2.6 percent. The Adhesive Technologies business unit likewise posted a solid improvement in organic sales of 2.1 percent.
After one-time gains, one-time charges and restructuring charges, adjusted operating profit (EBIT) rose by 6.2 percent from 707 million euros to 751 million euros. Reported operating profit grew by 10.7 percent from 648 million euros to 717 million euros.
Adjusted return on sales (EBIT margin) increased by a very strong 0.8 percentage points to 16.8 percent. Reported return on sales rose from 14.6 percent to 16.1 percent.
Henkel’s financial result improved by 2 million euros to -7 million euros. This was attributable in particular to the repayment of the hybrid bond in November 2015. The tax rate amounted to 24.2 percent compared to 24.6 percent in the prior-year quarter.
Adjusted net income for the quarter after deducting non-controlling interests grew by 7.6 percent from 510 million euros to 549 million euros.
Reported net income for the quarter increased by 11.6 percent from 482 million euros to 538 million euros. After deducting 13 million euros attributable to non-controlling interests, net income increased to 525 million euros (prior-year quarter: 470 million euros).
Adjusted earnings per preferred share (EPS) rose by 7.6 percent from 1.18 euros to 1.27 euros. Reported EPS increased from 1.09 euros to 1.21 euros.
Net working capital as a percentage of sales improved by 0.8 percentage points to 5.4 percent, due mainly to foreign exchange effects and lower inventories.
Henkel’s net financial position as of March 31, 2016, was 452 million euros. Effective December 31, 2015, it amounted to 335 million euros. ■