Henkel Profit Rises, Boosts Dividend; Sees Continued Currency Hit

(RTTNews) - German detergent maker Henkel AG & Co. KGaA (HENKY.PK, HENOY.PK) Thursday reported increased profit for the year, even as sales were hit by adverse currency. Further, the company proposed an increase in dividend.

Looking ahead, the company expects continued foreign exchange effects, particularly in the first half of the year. The stock is down nearly 5 percent in early morning trade.

Net income attributable to shareholders advanced to 1.589 billion euros or $2.18 billion from 1.480 billion euros reported last year. Prior-year results have been restated.

Adjusted net income, after deducting non-controlling interests, was 1.764 billion euros while it totaled 1.573 billion euros last year.

Operating profit advanced 3.9 percent to 2.285 billion euros.

Sale slid to 16.355 billion euros from 16.510 billion euros, impacted by foreign exchange effects.

Organic sales growth, which excludes the impact of foreign exchange and acquisitions/divestments, reached 3.5 percent, driven by price and volume. Organically, sales increased in all regions.

Laundry & Home Care business sector sales rose 0.5 percent to 4.580 billion euros. Organic sales growth was 5.7 percent, generated exclusively in emerging markets, where sales improved double-digit overall.

In the Beauty Care business, sales slid marginally to 3.51 billion euros, but posted solid organic sales growth of 3 percent.

Adhesive Technologies posted sales of 8.117 billion euros, compared to 8.256 billion euros last year. Organic growth was 2.7 percent, slightly above overall market expansion, due primarily to strong performance in emerging markets.

For the fourth-quarter, net income was 321 million euros compared to 349 million euros in the previous year. Sales slid 3.7 percent to 3.852 billion euros, but organic sales increased 3.3 percent.

The board proposed a dividend of 1.22 euros per preferred share, an increase of 28.4 percent.

Henkel CEO Kasper Rorste said, "2013 was a very successful year for Henkel. Despite a challenging and highly competitive market environment, we achieved our financial targets and made significant progress in implementing our strategy 2016."

Looking ahead, Rorste said the economic environment remains challenging and he expects persisting foreign exchange effects, particularly in the first half of the year.

The company expects fiscal year 2014 organic sales growth to be between 3 and 5 percent. Adjusted EBIT margin is estimated to increase to around 15.5 percent and adjusted earnings per preferred share to increase in the high single digits.

The stock is down 3.64 percent in early morning trade at 74.20 euros.