Henkel reveals strong second quarter results, boosted by cosmetics

By Simon Pitman

- Last updated on GMT

Related tags Organic sales growth Henkel Organic growth Innovation

Henkel has announced a significant jump in sales boosted by particularly big organic sales gains for its cosmetics and toiletries division.

The company said sales for the period were up by 11.6 percent to €3.89bn, a figure that represented total organic sales growth of 6.8 per cent, while net income increased by 86.7 per cent to €280m.

The lower organic sales figure was down to unfavourable currency translations, the company said.

In the cosmetics and toiletries division, the company recorded organic sales growth of €865m during the quarter, a figure that beat average market growth figures, the company pointed out.

Growth was largely down to ongoing product innovation rollout, which helped Henkel scoop up record market share in Europe, as well as significant contributions in the growth regions of Asia, Latin America, Africa, the Middle East and Eastern Europe.

Europe proves to be a winner

However, despite the very quiet retail environment in Europe, the company said that it registered double digit sales gains there, a performance that was particularly driven by significant gains in the domestic market of Germany.

The hair segment performed particularly well, with gains in market share for all categories. This result was driven by the launch of the Schauma anti-dandruff line, the continued roll-out of Syoss Color line and new launches under the Got2b and Taft Power & Touch hair styling brands.

Right Guard hits the spot

In body care, the launch of the Fa 3d Protect, together with the re-launch of Dial4Men and the introduction of the Right Guard men’s deodorant in Europe also boosted results.

In skin care and oral care the respective relaunches of the Diadermine Reactivance line and the Theramed 2 in 1 product also helped drive results in those two categories.

In laundry & Home Care, sales increased by 2.7 percent to €1.08bn, a figure that was positively impacted by foreign exchange to give an organic sales increase of 4.6 per cent.

The biggest gains were seen in the company’s mainstay adhesives business, but the comparisons were difficult as that area of the business was hard hit by the recession last year, with sales increasing by 19.5 per cent compared to the corresponding quarter in 2009.

Speaking about the full year results, CEO Kasper Rorsted said that stricter cost management, new innovations and renewed strategic priorities had all helped to shape a much improved outlook for the company.

“As a consequence we are now looking forward to an improvement of more than 25 percent in earnings versus 2009,”​ he said.

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