German company Henkel AG in the first quarter of 2019 has reduced adjusted profit before tax and interest payments (EBIT) is 5.6%, but confirmed forecasts to 2019.
According to a press release, EBIT in January-March amounted to 795 million Euro, compared to 842 million euros in the first quarter of last year.
Adjusted earnings in the calculation of the preference share decreased by 6.3 percent, to 1.34 euros from 1.43 euros in the same period last year. Excluding changes in exchange rates profit also fell by 6.3%.
Revenue grew 2.8% to 4,969 billion euros. While organic growth (excluding the impact of exchange rates and purchase/sale of assets) amounted to 0.7%.
“Despite the difficult market environment, Henkel had demonstrated in the first quarter of positive sales dynamics in organic and in nominal expression”, – said CEO of Henkel Hans van Bailen.
Adjusted return on sales declined by 1.4 percentage points to 16%.
The business unit Adhesive Technologies (adhesive technologies) minor reduced sales in organic terms up 0.8%. A similar index Beauty Care (cosmetics) fell 2.2%, while unit Laundry & Home Care (cleaners and detergents) showed a growth of 4.7%.
Sales growth in emerging markets amounted to 2.2%, while in Mature markets index decreased by 0.4%.
In Western Europe, sales in organic terms fell by 1.3%, whereas in Eastern Europe growth was 6.5%. The increase in sales in Africa and the middle East amounted to 13.5%, in North America and 1.1% in Latin America – 8%. While in the Asia-Pacific region has recorded a fall of 8.8%.
Henkel confirmed its forecast that in 2019 organic sales growth will be in the range of 2-4%, profitability of sales – in the range of 16-17%, and adjusted earnings per share at constant currency rates will be reduced by higher single-digit number.
Henkel, which was founded in 1876, operates in three main areas – detergents, cosmetics and personal care products, adhesives and technology. Major brands – Persil, Schwarzkopf and Loctite glue. The number of employees in the world more than 53 thousand people.
“Henkel Russia” was founded in 1990. Over the past ten years investments in the Russian market amounted to approximately 300 million euros. Nine production sites in the country has about 2.6 thousand people. The company produces in Russia, products under such brands as Persil, Pril, “Gloss”, “Weasel”, Schwarzkopf, Syoss, Fa, Ceresit, glue “Moment” and Loctite.