Henkel Cosmetics Biz posts substantial increase in sales

27 Feb '08

2 min read

Once again, we achieved a good performance in 2007. Our organic sales growth and further increase in profits were encouraging.

All our business sectors contributed to this success and we maintained sales momentum in our growth regions,” commented Ulrich Lehner, Chairman of the Management Board of Henkel KGaA.

“These results demonstrate the effectiveness of our strategy of focusing on our core businesses while striving for innovation leadership in each of our markets.”

Henkel published its annual report for fiscal 2007. Sales increased by 2.6 percent to 13,074 million euros, with all the company's business sectors contributing.

Organic sales, i.e. sales after adjusting for foreign exchange and acquisitions/divestments, were increased by 5.8 percent.

Operating profit (EBIT) increased by 3.5 percent to 1,344 million euros, thus outstripping sales growth. After adjusting for foreign exchange, the increase was 5.8 percent, again with all the business sectors contributing.

Return on sales (EBIT) increased by 0.1 percentage points to 10.3 percent. After adjusting for exceptional gains and restructuring charges, operating profit (EBIT) rose by 8.2 percent to 1,370 million euros with the corresponding return on sales figure improving 0.6 percentage points to 10.5 percent.

Net financial result improved by 28 million euros to -94 million euros, due primarily to the absence of the impairment loss of 26 million euros incurred in the previous year from our participation in Lion Corporation which was sold in November 2006. At 24.7 percent, the tax rate was 1.2 percentage points below the level of the previous year.

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