Improved performance for beauty business boosts Henkel Q3 earnings

Improved performance for beauty business boosts Henkel Q3 earnings

Scwarzkopf maker Henkel has reported better-than-expected Q3 earnings growth thanks to an improvement in its beauty and adhesives business and strength in its laundry business.

The hair care maker beat expectations, reporting that its adjusted operating profit for Q3 increased 12.3 percent to Euro 778 million. This exceeded analyst expectations of Euro 748 million.

As such the company has slightly raised its full year forecast, with growth expected to exceed 10 percent, as opposed to previous guidance of 10 percent. However, weaker growth in China has made the group more cautious about its full year sales outlook. Having previously forecast a 3 – 5 percent growth rate, it is now suggesting a more cautious 3 percent sales increase as slower economic growth in China halting growth for its adhesive technology business.

Net profit rose 10 percent to Euro 484 million euros from Euro 440 million, falling below analyst forecasts of Euro 521 million.

 

 

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