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By
Reuters
Published
Aug 12, 2015
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Germany's Henkel reports 14 percent rise in quarter two sales

By
Reuters
Published
Aug 12, 2015

FRANKFURT German consumer goods group Henkel reported a 14 percent increase in second-quarter sales and core profit, helped by solid demand for its detergents and adhesives in emerging markets and currency effects.

However, organic sales growth in Henkel's adhesives business, which accounts for half of its group sales, slowed down in the second quarter compared to the first quarter, driven by lower demand in the key North American market.


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"We expect the current difficult global economic environment to persist," Chief Executive Kasper Rorsted said in a statement on Wednesday. Henkel reiterated it expected 2015 organic sales growth of 3-5 percent and a flat operating profit margin.

In its laundry and home care business, the group saw growing sales in North America, helped by increasing appetite of U.S. consumers for its newly launched Persil detergent, which competes with Procter & Gamble's Tide, the market leader.

Looking to reclaim lost ground, Henkel in spring launched its high-end Persil laundry detergent, which is a billion-euro global brand in 60 countries outside the United States, through an exclusive tie-up with WalMart.

Henkel reported second quarter adjusted earnings before interest and tax (EBIT) of 768 million euros ($851 million) on sales of 4.7 billion euros, in line with analysts' expectations.

Henkel's shares were indicated to open 1.4 pct lower at brokerage Lang & Schwarz ahead of the Frankfurt market open, in line with the DAX .GDAXI.

(Reporting by Kirsti Knolle; Editing by Maria Sheahan and Georgina Prodhan)


 

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