Henkel: organic growth reached 4% in first quarter.

(CercleFinance.com) - Despite a "highly challenging market environment," German consumer goods group Henkel reported a "strong performance" in the first quarter, with sales exceeding five billion euros for the first time.


At 5,064 million euros, sales for the first three months of the year reached a new record level and grew 13.6% nominally year-on-year.

Organic sales, which exclude the impact of foreign exchange effects and acquisitions/divestments, rose by 4%, against the consensus of 5.5%.

Henkel's operating profit rose 13.8% in the quarter to 854 million euros, while EBIT margin improved by 10 basis points to 16.9%, in line with the consensus.

"The consumer goods markets were characterized by intensifying promotional and pricing pressure," said Henkel CEO Hans Van Bylen.

Also, Henkel maintained its 2017 guidance for organic sales growth of 2%-4%, alongside an EBIT margin of over 17%.

Henkel shares were up 0.3 percent at 127 euros, against a 0.1 drop in the DAX.

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