THE WHAT? Henkel has announced its results for the third quarter of the financial year. The manufacturer of Schwarzkopf saw sales inch up 0.8 percent to €5,077 million thanks to its robust laundry and home care offer.
THE DETAILS Beauty sales, however, disappointed, down 2.2 percent year-on-year to €970 million, while adjusted operating profit plunged 21.2 percent to €144 million and return on sales dove 14.8 percent on the prior-year quarter.
“In the third quarter, our business units reported a differentiated performance. The development of our Adhesive Technologies business unit was affected by a further significant decline in demand in key industries. Nevertheless, the business unit delivered a robust performance and the EBIT margin was again at a very high level,” said Henkel CEO Hans Van Bylen. “Despite first positive effects from our additional investments in brands and innovations, the development of the Beauty Care business was below the prior year. While the professional business maintained its positive development, our retail business was affected by a slower recovery in Western Europe and continued de-stocking in China as expected. In the Laundry & Home Care business, on the other hand, the successful launch of innovations contributed to the positive development.”
THE WHY? The company attributed the lack-luster performance of its Beauty Care division to a slower recovery in a highly competitive market environment in Western Europe and continued de-stocking measures in the Chinese Retail business.