Henkel Q1: Beauty’s poor performance hits profits

Henkel Q1: Beauty’s poor performance hits profits

Henkel has reported its financial results for the first quarter of the current financial year. Sales were up a nominal 2.8 percent to €4,969 million (+0.7 percent in organic terms) and operating profit dropped 5.6 percent to €795 million. Organic sales of the Beauty Care business were down 2.2 percent compared to the same quarter a year ago for a total of €960 million.

“Despite an increasingly challenging market environment Henkel delivered positive sales growth in the first quarter, both organically and in nominal terms. On Group level, adjusted EBIT margin and adjusted EPS development were within the range of our outlook for the full fiscal year,” said Henkel CEO Hans Van Bylen.

“In our consumer goods businesses, the performance of Beauty Care was below our expectations. While we successfully launched new brands and innovations and our hair professional business continued to outperform markets, we faced negative developments of our retail business in key regions such as Western Europe and China. We are addressing this development with targeted measures, aiming to boost growth and improve the performance of our Beauty Care business,” Hans Van Bylen added.

The German FMCG manufacturer confirmed its outlook for fiscal 2019, predicting organic sales growth of between 2 and 4 percent.

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