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Financial Figures/Balance Sheet
Düsseldorf (euro adhoc) - March 6, 2013
2012 targets fully achieved
Henkel's sales and earnings reaching record levels
- Sales rise 5.8 percent to 16,510 million euros (organic: +3.8%)
- Adjusted* operating profit: +15.1 percent to 2,335 million euros
- Adjusted* EBIT margin: +1.1 percentage points to 14.1%
- Adjusted* earnings per preferred share (EPS): +17.8% to 3.70 euros
- Strong performance in the emerging markets (organic: +7.8%)
- Proposed dividend: +18.8 percent to 0.95 euros per preferred share
- 2013 set to be another year of growth
* Adjusted for one-time charges/gains and restructuring charges
Düsseldorf - "2012 was the most successful year for Henkel so far: we achieved
excellent results in a highly volatile and competitive market environment and
met or exceeded all financial targets," said Henkel CEO, Kasper Rorsted. "All
three Henkel business sectors showed profitable growth with expansion of market
shares in their relevant markets. We also delivered on the ambitious financial
targets we set in 2008 for the period up to 2012. We have substantially
strengthened Henkel's competitiveness, establishing a strong foundation for our
future growth."
Looking at fiscal year 2013, Rorsted said: "The strong dynamics and high
volatility in our markets will persist. Although Henkel is well positioned, we
will continue to further simplify and improve our processes in order to respond
to changes faster than our competition.
We expect organic sales growth for the full fiscal year to be between 3 and 5
percent. We also expect to increase our adjusted EBIT margin to around 14.5
percent, and improve adjusted earnings per preferred share by around 10
percent."
Sales and earnings 2012
In a challenging economic environment, Henkel's sales grew to 16,510 million
euros in fiscal year 2012, an increase of 5.8 percent versus the prior year.
Organic sales, which exclude the impact of foreign exchange and
acquisitions/divestments, rose by 3.8 percent, driven by both price and volume.
All three business sectors contributed to organic sales growth and further
expanded market shares in their relevant markets. Laundry & Home Care posted an
increase in organic sales of 4.7 percent. Organic growth in Adhesive
Technologies was around 3.6 percent. The Beauty Care business sector posted an
organic sales growth of 3.1 percent.
After allowing for one-time gains, one-time charges and restructuring charges,
adjusted operating profit rose to 2,335 million euros, an increase of 15.1
percent over the figure of 2,029 million euros for the prior year. All three
business sectors contributed to this positive development. Reported operating
profit (EBIT) amounted to 2,199 million euros compared to 1,765 million euros
in the prior year.
Despite higher prices in procurement markets, adjusted return on sales
(adjusted EBIT margin) increased significantly by 1.1 percentage points, from
13.0 percent to 14.1 percent. Reported return on sales amounted to 13.3 percent
compared to 11.3 percent in the prior year.
The financial result improved by 14 million euros to -141 million euros, as a
result of the decrease in net debt and lower interest rates. Foreign exchange
also had a positive effect. The tax rate was 24.4 percent compared to 26.0
percent in the prior year.
Adjusted net income after deducting non-controlling interests increased year on
year by 18.2 percent, from 1,356 million euros to 1,603 million euros. Net
income was at 1,556 million euros compared to 1,191 million euros in the prior
year. After deducting 46 million euros attributable to non-controlling
interests, net income amounted to 1,510 million euros (previous year: 1,161
million euros). Adjusted earnings per preferred share (EPS) increased 17.8
percent year on year, from 3.14 euros to 3.70 euros. Unadjusted, EPS was 3.49
euros versus 2.69 euros in the prior year.
The Management Board, Supervisory Board and Shareholders' Committee propose
that the Annual General Meeting approves a 18.8 percent higher dividend per
preferred share of 0.95 euros (previous year: 0.80 euros) and a 19.2 percent
increased dividend per ordinary share of 0.93 euros (previous year: 0.78
euros).
The ratio of net working capital to sales underwent a further improvement,
ending the year at 5.2 percent, 2.1 percentage points below the level at the
end of 2011. Net debt as of December 31, 2012, decreased substantially to 85
million euros (December 31, 2011: 1,392 million euros). Free cash flow was more
than doubled to a new record high of 2,023 million euros.
Business sector performance
Laundry & Home Care reported an organic increase in sales of 4.7 percent for
the year under review. Growth was thus significantly above that of its relevant
markets. Nominally, sales rose 5.9 percent to 4,556 million euros for the year,
with all regions contributing to the positive business performance.
Western Europe posted positive organic sales growth despite the persistently
difficult market environment prevailing in its southern countries. The region
profited significantly from the very solid performance registered in Germany,
France and Italy. Sales growth in North America was likewise solid, despite a
highly competitive and still declining market. Sales in the emerging markets
increased by a high single-digit percentage overall.
Adjusted operating profit rose significantly by 15.5 percent to 659 million
euros. Adjusted return on sales likewise improved, by 1.3 percentage points to
14.5 percent. Reported operating profit stood at 621 million euros, compared to
419 million euros in the previous year. In addition to a positive business
performance the improvement was also attributable to reduced restructuring
charges.
Continuing the trend of previous years, Beauty Care again generated profitable
growth in 2012. Organically, sales rose by 3.1 percent, once more significantly
outstripping the positive growth of the relevant markets. As in previous years,
the strong innovation program contributed to this solid performance. Nominally,
sales rose by 4.2 percent, reaching 3,542 million euros.
Business performance was particularly successful in the emerging markets, with
Asia (excluding Japan) standing out through strong double-digit growth thanks
to substantial expansion of business in China. The Africa/Middle East region
likewise posted double-digit sales growth, and there were also sales increases
in the mature markets.
Business performance in North America was particularly gratifying. Sales in
Europe remained at the 2011 level despite the euro crisis and adverse economic
developments in Southern Europe.
Adjusted operating profit increased significantly by 6.8 percent versus the
prior year, to 514 million euros, the business sector's highest earnings figure
to date. As a result, adjusted return on sales rose by 0.3 percentage points to
14.5 percent, likewise reaching a new high. Reported operating profit rose year
on year by 2.6 percent to 483 million euros.
Adhesive Technologies likewise continued its profitable growth in 2012. Despite
economic activity slowing overall during the course of the year, sales
increased above the 8 billion euro mark for the first time, reaching a new high
of 8,256 million euros. Organic sales growth was 3.6 percent, with ongoing
portfolio alignment toward innovative customer solutions being a key factor in
this solid performance.
Strong sales growth was again recorded in emerging markets, the Africa/Middle
East region accounting for the largest increase with sales growth in the double-
digits. Sales performance was positive overall in the mature markets, with
especially large contributions from North America. The strong sales growth
generated there more than compensated for the effects of the negative economic
conditions in Western Europe, particularly in the countries of Southern Europe.
Adjusted operating profit increased by 15.9 percent and reached a new high of
1,246 million euros. Adjusted return on sales rose by 1.2 percentage points,
likewise reaching another high of 15.1 percent. Operating profit rose by 18.9
percent to 1,191 million euros.
Regional performance
In a highly competitive market environment, Western Europe posted sales of
5,610 million euros, virtually matching the prior year. Organic sales growth
was slightly negative at -0.5 percent. The positive trend in Germany was
overshadowed by the recessionary trend in Southern Europe. Sales in Eastern
Europe increased by 6.2 percent to 2,986 million euros. The organic sales
growth of 6.0 percent was supported primarily by the businesses in Turkey and
Russia. In the Africa/Middle East region, sales grew by a nominal 15.3 percent
to 1,077 million euros. Organic sales growth was 12.6 percent, driven by double-
digit growth rates in, among others, the United Arab Emirates, Algeria and
Egypt. Sales in the North America region registered a nominal increase of 11.3
percent to 3,023 million euros. Despite a reluctant consumer climate in the
USA, organic sales growth for the region came in at 4.8 percent. Sales in Latin
America declined slightly by a nominal -0.4 percent to 1,062 million euros.
Organically, on the other hand, sales grew by 3.1 percent. This was mainly
thanks to business performance in Mexico, whereas Brazil registered declining
sales. In the Asia-Pacific region, sales grew by a nominal 13.1 percent to
2,597 million euros. With organic growth of 7.4 percent, the region continued
to show very strong performance, driven in particular by double-digit growth
rates in China and India.
Sales generated by the emerging markets of Eastern Europe, Africa/Middle East,
Latin America and Asia (excluding Japan) increased nominally by 9.3 percent to
7,115 million euros in the reporting period. Organic sales growth was 7.8
percent, with all business sectors contributing. The share of sales from
emerging markets climbed from 42 to 43 percent.
Fourth quarter 2012
Henkel increased fourth quarter sales by 5.3 percent year on year, to 4,002
million euros. Organic sales growth was 4.0 percent. Adjusted operating profit
- i.e. earnings adjusted for one-time charges/gains and restructuring charges -
rose 8.4 percent, from 502 million to 544 million euros. Reported operating
profit (EBIT) reached 492 million euros following 347 million euros in the
prior year quarter. Adjusted return on sales (adjusted EBIT margin) rose 0.4
percentage points, from 13.2 percent to 13.6 percent. Return on sales amounted
to 12.3 percent following 9.1 percent in the prior year period. Adjusted net
income for the quarter after deducting non-controlling interests rose year on
year by 12.9 percent, from 334 million to 377 million euros. Total net income
for the quarter was 357 million euros compared to 212 million euros in the
previous year. After deducting non-controlling interests amounting to 14
million euros, net income for the quarter amounted to 343 million euros (prior
year quarter: 203 million euros). Adjusted earnings per preferred share (EPS)
rose 13.0 percent to 0.87 euros versus 0.77 euros in the prior year quarter,
while the unadjusted figure rose from 0.47 euros to 0.79 euros.
Outlook for the Henkel Group 2013
Henkel expects to generate organic sales growth of 3 to 5 percent in fiscal
year 2013, and expects each business sector to generate organic sales growth
within this range. In recent years, Henkel has introduced a number of measures
that have had a positive effect on its cost structure. Also in this year,
Henkel intends to continue adapting its structures to constantly changing
market conditions and to continue its strict cost discipline, especially in
administration. By optimizing and standardizing its processes and continuing to
expand its shared services, Henkel can pool activities and thus further improve
its own efficiency while at the same time enhancing the quality of its customer
service. Moreover, the optimization of its production and logistics networks
will help to improve cost structures. These factors together with the expected
increase in sales will have a positive effect on earnings performance. Compared
to the figures for 2012, Henkel expects adjusted return on sales (EBIT) to
increase to around 14.5 percent (2012: 14.1 percent), and that all business
sectors will contribute to this improvement. Henkel further expects adjusted
earnings per preferred share to increase by around 10 percent.
This document contains forward-looking statements which are based on the
current estimates and assumptions made by the corporate management of Henkel AG
& Co. KGaA. Forward-looking statements are characterized by the use of words
such as expect, intend, plan, predict, assume, believe, estimate, anticipate,
forecast and similar formulations. Such statements are not to be understood as
in any way guaranteeing that those expectations will turn out to be accurate.
Future performance and the results actually achieved by Henkel AG & Co. KGaA
and its affiliated companies depend on a number of risks and uncertainties and
may therefore differ materially from the forward-looking statements. Many of
these factors are outside Henkel's control and cannot be accurately estimated
in advance, such as the future economic environment and the actions of
competitors and others involved in the marketplace. Henkel neither plans nor
undertakes to update forward-looking statements.
Contact
Lars Witteck Wulf Klüppelholz
Phone +49 211 797 - 2606 Phone +49 211 797 - 1875
Fax +49 211 798 - 4040 Fax +49 211 798 - 4040
E-Mail: lars.witteck@henkel.com E-Mail: wulf.klueppelholz@henkel.com
Henkel AG & Co. KGaA
The 2012 Annual Report and further information with download material and the
link to the press conference live webcast can be found in our press folder at:
http://www.henkel.com/press/press-conference-publication-of-2012-annual-report-
39164.htm
Up-to-date information about the financial results 2012 is also available in
our new Henkel iPad app. This app delivers you a wealth of information on
Henkel, including latest news, annual and sustainability reports, videos, and
more. In the course of 2013, Henkel will introduce an Android version, too.
https://itunes.apple.com/de/app/henkel/id580146237?mt=8
Further inquiry note:
Irene Honisch
Assistent Corporate Communications
Tel.: +49 (0)211 797-5668
E-Mail: irene.honisch@henkel.com
end of announcement euro adhoc
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company: Henkel AG & Co. KGaA
Henkelstr. 67
D-40191 Düsseldorf
phone: +49 (0)211 797-0
FAX: +49 (0)211 798-4008
WWW: http://www.henkel.com
sector: Consumer Goods
ISIN: DE0006048432, DE0006048408
indexes: DAX, CDAX, HDAX, Prime All Share
stockmarkets: free trade: Hannover, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing: Berlin, regulated dealing/prime standard:
Frankfurt
language: English