Cosmetics and toiletries up as Henkel posts positive Q3 results

Germany-based company Henkel has posted its third quarter results, with the cosmetics and toiletries sector aiding its strong growth.

Henkel posted sales of €3,961m, this represents an increase of 13.7 per cent above the level of the prior-year quarter and 6.4 per cent after adjusting for foreign exchange rates.

The cosmetics business sector continued the positive sales and profit performance of previous quarters. With organic growth of 4.6 per cent to €845m, it significantly exceeded the sales levels achieved in an already strong prior-year period.

The rate of growth posted by the cosmetics segment was above market growth, and resulted from strong performance in both the mature markets and the emerging economies, the company claimed.

Western Europe posted steady growth

The business sector continued to generate steady growth momentum in Western Europe, while developments in North America were stable.

Performance in the growth regions of Asia (excluding Japan), Africa/Middle East, Latin America and Eastern Europe was above-average, according to the Dusseldorf-headquartered firm, with organic sales growth in the double-digit percentage range.

Operating profit rose by 13.4 percent to €113m, and by 7.3 per cent after adjusting for foreign exchange.

Segment breakdown

The hair cosmetics segment performed well, according to the company, with an expanded market share. In addition to the launch of the Schauma Silk Comb range, the hair care business also pursued the relaunch of Gliss Kur Oil Nutritive.

Relaunches were also popular in the Styling category, with the relaunch of Taft and the new sub-line Taft Ultra with Argon Oil which contributed to the good results achieved.

In the colourants business, the focus was on continuing the successful roll-out of the Syoss Color line and the introduction of the first permanent foam colorant in the form of Perfect Mousse.

In Western and Eastern Europe, deodorant brand, Right Guard, was able to establish a position for itself in what has become a competitive environment, Henkel claimed.

Market share in North America was substantially increased with the launch of Right Guard Total Defense 5.

Gained a good market position

In all segments, in what the company term as a ‘persistently difficult market environment’, Henkel says it has consolidated its good market position and gained additional market share.

“In the third quarter, we further extended our recent successes with results even better than the good performance we have shown in recent quarters. This is the first quarter that we have ever achieved an adjusted EBIT margin of 13 per cent,” said Kasper Rorsted, chairman of the Henkel Management Board.

“I would particularly like to emphasize the fact that all our regions and business sectors made a positive contribution to this success in a persistently challenging environment. Growth was once again given major impetus by our strong brands and successful innovations.”