Henkel Reports Solid Progress in Third Quarter

2018 Financial Year Target Confirmed

Henkel confirmed its target for the 2018 financial year. The company continues to expect organic sales growth in the range of 2 to 4 percent for the Henkel Group. Henkel confirms its expectation of organic sales growth in the range of 4 to 5 percent for the Adhesive Technologies business unit. In the Beauty Care business unit, Henkel confirms its expectation of positive organic sales growth in the range of 0 to 2 percent. In the Laundry and Home Care business unit, Henkel continues to expect growth in the range of 2 to 4 percent. Henkel maintains its forecast that adjusted sales profit (EBIT) will reach the 18 percent level over a one-year period. Positive contribution from all three business units is expected. Henkel confirms its expectation of earnings per preferred share in the range of 3 to 6 percent.

Sales and Profit Performance in Q3 2018

Sales in the third quarter of 2018 reached EUR 5.037 billion and grew nominally by 1.1 percent compared to the third quarter of the previous year. Organic sales, adjusted for currency fluctuations and the effects of acquisitions and divestitures, recorded a solid increase of 2.7 percent. The contribution from acquisitions and divestitures was realized at 1.6 percent. The negative impact of currency fluctuations on sales was -3.2 percent. The Adhesive Technologies business unit reported strong organic sales growth of 3.8 percent. In the Beauty Care business unit, positive organic sales increased by 0.5 percent. The Laundry and Home Care business unit achieved solid organic sales growth of 2.5 percent. Emerging markets contributed above-average to the Group's organic growth, with very strong organic sales growth of 6.8 percent. Developed markets were approximately at the same level as the third quarter of the previous year, with an organic sales change of -0.1 percent. Western Europe showed positive development with organic sales growth of 0.6 percent. Eastern Europe achieved significant organic sales growth of 7.1 percent. In Africa / Middle East, organic sales growth reached double-digit figures at 13.1 percent. Organic sales in North America declined slightly by -0.8 percent. Latin America showed double-digit organic growth with an increase of 11.5 percent. In the Asia-Pacific region, positive developments resulted in organic sales growth of 1.2 percent.