"Henkel had a good start into the fiscal year 2016. We further grew sales and earnings and significantly increased adjusted return on sales to 16.8 percent. All three business units contributed to the overall good performance. We delivered strong organic growth again in our emerging markets," said Henkel CEO Hans Van Bylen. With regard to the current fiscal year, Van Bylen said: "We expect the overall challenging market environment to continue in 2016 – with only moderate global economic growth, high uncertainties in the markets and unfavorable foreign exchange developments. We will therefore focus on leveraging our strong brands, our leading market positions and our innovation capabilities to achieve our ambitious targets." Van Bylen confirmed Henkel's outlook for the current fiscal year: "For the full fiscal year 2016, we expect organic sales growth of 2 to 4 percent. We expect our adjusted EBIT margin to rise to approximately 16.5 percent and adjusted earnings per preferred share to grow between 8 and 11 percent." In the first quarter of 2016, sales increased by 0.6 percent to 4,456 million euros. Adjusted for negative foreign exchange effects of 3.4 percent, sales improved by 4.0 percent. Organically – i.e. adjusted for foreign exchange and acquisitions divestments – sales rose by 2.9 percent. Henkel expects to generate organic sales growth of 2 to 4 percent in the fiscal year 2016. Henkel expects that each business unit will generate growth within this range. Henkel furthermore expects a slight increase in the share of sales from its emerging markets. For adjusted return on sales (EBIT), Henkel expects an increase versus the prior year to approximately 16.5 percent. The adjusted return on sales of the individual business units is expected to be at or above the level of the previous year. Henkel expects an increase in adjusted earnings per preferred share of between 8 and 11 percent. The Laundry & Home Care business unit recorded solid organic sales growth of 4.7 percent. The Beauty Care business unit achieved a solid increase in organic sales of 2.6 percent. The Adhesive Technologies business unit likewise posted a solid improvement in organic sales of 2.1 percent. After one-time gains, one-time charges and restructuring charges, adjusted operating profit (EBIT) rose by 6.2 percent from 707 million euros to 751 million euros. Reported operating profit grew by 10.7 percent from 648 million euros to 717 million euros Adjusted return on sales (EBIT margin) increased by a very strong 0.8 percentage points to 16.8 percent. Reported return on sales rose from 14.6 percent to 16.1 percent. Henkel's financial result improved by 2 million euros to -7 million euros. This was attributable in particular to the repayment of the hybrid bond in November 2015. The tax rate amounted to 24.2 percent compared to 24.6 percent in the prior-year quarter. Adjusted net income for the quarter after deducting non-controlling interests grew by 7.6 percent from 510 million euros to 549 million euros. Reported net income for the quarter increased by 11.6 percent from 482 million euros to 538 million euros. After deducting 13 million euros attributable to non-controlling interests, net income increased to 525 million euros (prior-year quarter: 470 million euros). Adjusted earnings per preferred share (EPS) rose by 7.6 percent from 1.18 euros to 1.27 euros. Reported EPS increased from 1.09 euros to 1.21 euros. Net working capital as a percentage of sales improved by 0.8 percentage points to 5.4 percent, due mainly to foreign exchange effects and lower inventories. Henkel's net financial position as of March 31, 2016, was 452 million euros. Effective December 31, 2015, it amounted to 335 million euros. Eastern Europe made a significant contribution with double-digit sales growth. Sales growth in Latin America and Asia (excluding Japan) was positive. The Africa/Middle East region recorded solid sales growth. Sales performance in the mature markets was positive versus the prior-year quarter. The businesses in North America contributed to this development with very Strong growth. Positive growth was achieved in the mature markets of the Asia- Pacific region. Due to persistently intense crowding-out competition and strong price pressure, sales in Western Europe were below the level of the prior-year quarter. Adjusted operating profit of the Beauty Care business unit rose versus the prior year Quarter by 5.0 percent to 157 million euros. Adjusted return on sales showed a very strong improvement of 0.6 percentage points to 16.5 percent. Reported operating profit grew by 7.5 percent to 143 million euros. The Adhesive Technologies business unit generated solid organic sales growth of 2.1 percent in the first quarter. Nominally, sales decreased slightly, by 0.8 percent to 2,144 million euros (prior-year quarter: 2,160 million euros).
