The German consumer goods manufacturer Henkel reported on Thursday higher revenues and profits in the fourth quarter, thanks to strong performance in its adhesive business.
In the fourth quarter, Henkel’s revenues adjusted for currency effects and acquisitions or asset sales increased by 3.2 percent to 4.9 billion euros.
Earnings before interest and taxes (EBIT) adjusted for one-time items and restructuring costs rose by five percent to 801 million euros. In the adhesives division, revenues adjusted for currency effects and the impact of acquisitions or asset sales increased by 6.4 percent to 2.3 billion euros.
The detergents division recorded a negative organic growth rate of 1.2 percent in the fourth quarter. In the cosmetics division, it was one percent.
The main reason for the decline in the cosmetics division was inventory depletion in the Chinese market, while the detergents business was pressured by weakness in the Middle East and Africa, said Henkel’s CFO Carsten Knobel during a teleconference with analysts.
In 2018, Henkel expects normal organic growth in the range of two to four percent. Adjusted earnings per preferred share are expected to rise by five to eight percent, with the company highlighting ongoing pressures from currency effects.
