German homecare and adhesives maker Henkel (also the maker of Right Guard) has seen its second quarter earnings in 2014 climb from €418m to €441m. Organic sales from Beauty pushed 2.1% higher and Laundry & Home care rose by 4.2%.
However, there are clear pressures, as the Germany company has also seen its operating profits dented, from €607m to €589m. According to Henkel, mature western markets are characterised by ongoing decline, increasing promotional activity and increasing pressure on prices. However, the performance of Beauty Care has remained steady, and the company has seen strong growth in China.
The company’s sales in North America this quarter fell below the level of the second quarter of 2013. “We expect the escalation of the Russian-Ukrainian conflict as well as the persisting political turmoil in the Middle East to have a negative impact on the market environment,” said Kasper Rorsted, CEO of Henkel, adding that despite this, the “company is on track to reach 2016 targets.”
