Henkel’s growth strategy and financialtargets for 2016
The Euro crisis and its negativeeffects on customers have so far hadlittle effect at Henkel because thecompany has sold more in emergingcountries. Henkel is on the verge of arecord year. The company’s boss issetting ambitious targets for the nextfour years. The company will increaseits investments and raise capitalexpenditures by more than 40% to atotal of around €2 bn until 2016.Smaller and medium-sizedacquisitions are planned if suitableopportunities arise, but non-strategicactivities with sales of €500 M will besold. The leading brands are toaccount for around 60% of sales by2016; the figure will be around 46% in2012. Sales are to rise to €20 bn in2016, of which €10 bn will be inemerging markets. Seven new R&Dfacilities are planned in India, Korea,Russia, S Africa, Brazil and Mexico.
The company had sales up 6.6%in 3Q 2012 at €4.29 bn, withoperating profit (EBIT) of €586 M, up29.9%. Net profits were up €90 M at€397 M. The results were in line withmarket expectations. For 3Q 2012,Henkel’s Beauty Care businesssegment reported sales of €908 M(3Q 2011: €860 M). Operating profitwas €114 M (3Q 2011: €111 M). Asin the preceding quarters, emergingmarkets particularly contributed to thesolid sales performance. Asia(excluding Japan) and Africa/MiddleEast continued to develop verydynamically, generating a significantincrease in sales with double-digitgrowth rates. The growth dynamics inLatin America softened. Overall,Henkel succeeded in increasing salesin the mature markets in 3Q 2012.Henkel’s Laundry and Home Carebusiness segment reported 3Q 2012sales of €1194 M (3Q 2011: €1110M) and operating income of €168 M(€125 M). All of the company’sregions contributed to the solid salesperformance achieved. Emergingmarkets again showed the greatestgrowth momentum, with overallexpansion in the high single-digitrange. The increase in salesgenerated in Latin America cameclose to double-digit. Sales in EasternEurope were also very strong,supported by double-digit growthrates in Russia and Turkey. Henkel
was able to achieve a strong increasein sales in the Africa/Middle Eastregion, despite the political and socialunrest in the Middle East. Thecompany again posted positive salesgrowth in Western Europe, driven inparticular by double-digit growth inFrance. Within a still weak marketenvironment in the SouthernEuropean countries, Italy alsoshowed a solid sales performance.Sales in North America againdeveloped positively despite a stilldeclining market.
Original Source: Chemie Aktuell, 19 Nov 2012,(Website: http://www.maerkte-weltweit.de) (inGerman) © MBM Martin Brueckner Medien GmbH2012. Original Source: Handelsblatt Wirtschafts- undFinanzzeitung, 16 Nov 2012, (Website:http://www.handelsblatt.com) (in German) © Verlagsgruppe Handelsblatt GmbH & Co KG 2012
Kao summary of consolidatedbusiness results for 1H FY 2012
Kao Corp’s net sales fell to Yen608,976 M in 1H FY 2012 (1 Apr-30Sep 2012) from Yen 614,885 M in 1HFY 2011. Operating incomedecreased to Yen 53,377 M from Yen57,508 M, while ordinary income fellto Yen 55,353 M from Yen 58,896 M.Net income rose to Yen 35,861 Mfrom Yen 30,743 M. Sales were firmin the consumer products business,reflecting the contribution of thehuman health care segment and thefabric and home care segment. Salesdecreased in the chemical segmentdue to the lower demand in customerindustries and adjustment in sellingprices related to lower materialprices.
Net sales from Kao’s beauty caresegment fell to Yen 267.2 bn in 1H FY2012 from Yen 271.8 bn in 1H FY2011, while operating incomeincreased to Yen 7.3 bn from Yen 7bn. Kao’s net sales from its fabric andhome care segment rose to Yen 146bn in 1H FY 2012 from Yen 143.3 bnin 1H FY 2011, while operatingincome increased to Yen 31 bn fromYen 28.8 bn due to higher sales andcost reduction activities. Sales offabric care products were firm andthose of home care products rose.
Kao Corp’s net sales in Japan roseto Yen 465.6 bn in 1H FY 2012 fromYen 463.2 bn in 1H FY 2011, whileoperating income increased to Yen 47bn from Yen 45.2 bn. Sales in Asia fellto Yen 80.5 bn from Yen 88.8 bn, and
profit fell to Yen 3.3 bn from Yen 6.3bn. Net sales in North Americadecreased to Yen 45.4 bn from Yen48.3 bn, with operating income downto Yen 0.8 bn from Yen 2.9 bn. Netsales in Europe fell to Yen 54.4 bnfrom Yen 61.1 bn, and operatingincome decreased to Yen 2.2 bn fromYen 4.2 bn.
Original Source: Kao Corp, 1-14-10 NihonbashiKayabacho, Chuo-ku, Tokyo 103-8210, Japan, tel: +81 3 3660 7111, website: http://www.kao.co.jp/en/(23 Oct 2012) © Kao Corporation 2012
Reckitt Benckiser: first nine months of2012
For the first nine months of its fiscal2012, Reckitt Benckiser plc reportednet revenue of £7091 M (level with thesame period in 2011), with netrevenue in 3Q 2012 of £2422 M (-1%on 3Q 2011). In Europe & NorthAmerica (ENA; 55% of core netrevenue), net revenue for the year todate (YTD) was £3442 M (-4%).Although market conditions remainedchallenging, volume shares showedresilience. Hygiene brands Lysol andFinish performed strongly, particularlyin the USA behind new initiativessuch as Lysol Power & Free, FinishQuantum and All-in-1 gel packs andtablets. In the Home category, Vanishshares showed positive momentum,although the market is still down. InLatin America and the Asia Pacific(LAPAC) (28% of core net revenue),Reckitt posted a 6% rise in YTD 2012net revenue to £1736 M. Growthcontinues to be ‘broad based’ in theregion, driven by distributionexpansion, innovation andinvestment. Dettol soap and showergels, Finish and Vanish are amongthe brands reported to have deliveredstrong growth. The RUMEAgeographic area (Russia/CIS, Africa,Middle East and Turkey; 17% of totalrevenue) reported YTD revenue of£1077 M (+3%).
In Reckitt Benckiser’s Hygienesector, YTD net revenue increased2% to £2786 M, largely driven bystrong growth in the Dettol/Lysolfranchise in all three geographicalareas. Finish continues to performwell in a number of markets globally,and particularly in the USA whereQuantum and All-In-1 tablets and gelpacks have gained significant marketshare in 2012. In the Home segment,
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F O C U S O N S U R F A C T A N T S
