German trade group Henkel has had an excellent third quarter, despite a weaker Chinese economy, which is mostly bad news for its Adhesive Technologies branch.
Double-digit profit growth
The company, known for its consumer brands like Schwarzkopf, Persil and Pritt, managed to offset the weaker Asian economy, resulting in a 4.6 billion euro turnover. That represents a 3.2 % organic turnover growth and if exchange rate fluctuations are included, it would have been an 8.4 % organic growth.
Operational profit, taking into account one-time charges, one-time gains and restructuring charges, grew even more, up 12.3 % to 778 million euro. Net profit reached 484 million euro, an improvement over the 440 million euro it reached in last year's third quarter.
All business units performed better
The strong third quarter performance in challenging and volatile markets demonstrates our ability to adjust to the difficult economic environment. Both our turnover and profit experienced sizeable growth, in all of our business units", a satisfied CEO Kasper Rorsted said.
The "Laundry & Home Care" branch had a 5.5 % organic turnover growth, "Beauty Care" added 2.1 % and "Adhesive Technologies" managed to grow 2.3 % despite the weaker Chinese economy. The Adhesive Technologies branch is the company's most profitable branch and also represents about half of the company's turnover.
Henkel now forecasts a full-year 3 % organic turnover growth and a 16 % profit growth.