Henkel Q3 Profit Down 9.4%; Confirms FY19 Outlook - Quick Facts
(RTTNews) - German consumer goods maker Henkel AG & Co. KGaA (HENOY, HENKY) Thursday reported that its third-quarter net income attributable to shareholders declined 9.4 percent to 556 million euros from 614 million euros in the year-ago period. Earnings per preferred share decreased to 1.28 euros from 1.42 euros in the prior-year period.
Adjusted net income for the quarter was 617 million euros, compared to 686 million euros in the prior-year quarter. Adjusted earnings per share were 1.43 euros, compared to 1.58 euros a year ago.
Adjusted operating profit or EBIT declined 8.2 percent to 850 million euros from 926 million euros in the prior-year quarter.
Adjusted return on sales or EBIT margin declined 1.7 percentage points to 16.7 percent.
Henkel noted that the adjusted EBIT margin, adjusted EBIT and adjusted earnings per preferred share were below the level of the prior year, impacted mainly by additional growth investments in the consumer goods businesses and digitalization announced at the beginning of the year.
Sales for the quarter rose 0.8 percent to 5.08 billion euros from 5.04 billion euros last year. Organic sales, which exclude the impact of currency effects and acquisitions/ divestments, declined 0.3 percent.
For fiscal 2019, Henkel confirmed its outlook. The company continues to expect Group organic sales growth of 0 to 2 percent and adjusted return on sales on Group level in the range of 16 to 17 percent.
For full-year adjusted earnings per preferred share, Henkel continues to anticipate a development in the mid- to high single-digit percentage range below prior year at constant exchange rates.
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