Henkel ups sales forecast after strong Q3

Germany-based company improved its performance on the second quarter, posting sales of €3.36bn for Q3, up 3 per cent on the same period last year. The strength of the Euro held the figures back slightly with sales at constant exchange rates rising 4.7 per cent. Operating profit increased 11.8 per cent to €359m and the operating margin crept into double figures to 10.7 per cent from 9.8 per cent last year. Net profit for the quarter rose 12.9 per cent to €245m. Cosmetics and toiletries, which represents over 20 per cent of Henkel's sales, was once again the strongest division posting 7.3 per cent organic growth, compared to 6 per cent organic growth for the whole group. Organic growth accounts for acquisitions and divestments as well as exchange rates Henkel said within the division sustained good performance in its core European markets was boosted by particularly high sales in Eastern Europe and Latin America. The hair care business generated significant growth with market share increasing in all sub-categories. Body care also performed well supported by product launches under the Fa and Dial brands and the re-launch of the Right Guard brand in the UK boosted deodorant sales. The company also made further forays into the anti-aging market re-launching its Diadermine Lift+ line and releasing a premium range Diadermine Age Excellium. In view of the improved performance in Q3, Henkel has increased its organic sales forecast for the fiscal year to 5 - 6 per cent from 4 - 5 per cent.