Beauty care business performance is weak

As of the first nine months of September 30, 2019, sales of Henkel group increased by 1% to 15.2 billion euros compared with the same period of last year, and organic sales were flat compared with the same period of last year; adjusted operating profit fell by 7.5% to 2.49 billion euros compared with the same period of last year. On November 14, Henkel group, a German giant of Applied Chemistry and home personal care products, released key financial data in the third quarter of fiscal year 2019. The growth of detergent and home care business partially made up for the decline of beauty care and adhesive technology. Overall, organic sales declined slightly. As of the close of the day, the shares of Henkel group fell 0.3% to 95 euros per share. In the third quarter, the market performance of Henkel group was uneven. According to the year-on-year organic change of sales, the Western European market fell 2.1%, but the Eastern European market achieved 7.7% growth; the African and Middle East markets achieved 19.1% high growth; the North American and Latin American markets fell 3.1% and 3.4% respectively; the Asia Pacific market fell 5.7%. As of the first nine months of September 30, 2019, the sales of Henkel group increased by 1% to 15.2 billion euros compared with the same period of last year, and the organic sales were the same as the same period of last year; the adjusted operating profit fell by 7.5% to 2.49 billion euros compared with the same period of last year. As of September 30, the core financial data of Henkel group in the third quarter of fiscal year 2019 are as follows: € 5.08 billion in sales, lower than the average forecast of 5.1 billion by analysts, with a year-on-year growth of 0.8% and an organic decline of 0.3%; 0.4% in sales due to acquisition of new business and divestiture of old business, and 0.7% in sales due to favorable exchange rate factors P > adjusted operating profit before interest and tax (ebitebitebitebitprofit) fell 8.2% year-on-year year year-on-year, to EUR 850 million, which was 16.7%, down 1.7% year-on-year year year-on-year year year year-on-year year year-on-year drop 9.5% year-on-year drop to 1.43 euros, down 10.8% at constant exchange rate.

Adhesive technology business: the sales volume was 2.4 billion euros, up 0.9% year-on-year; the sales volume fell 2.4% organically, mainly due to the deterioration of industrial manufacturing environment, especially the automobile industry; the adjusted operating profit fell 1.7% year-on-year to 460 million euros The situation is still fierce, the retail business in China continues to de stock, but the North American market shows a positive trend; after adjustment, the operating profit fell 21.2% to 144 million euros on a year-on-year basis detergent and home care business: the sales volume was 1.68 billion euros, an increase of 2.5% on a year-on-year basis; the sales volume grew 4% organically, mainly benefited from the double-digit growth of sales volume in emerging markets in Eastern Europe The performance of new products of polyester brand pril is particularly outstanding, achieving double-digit sales growth; adjusted operating profit fell 9% to 270 million euros compared with the same period last year. Analysts suggested selling or divesting some businesses for the weak beauty care business, but the founding family of the group holding 60% voting rights seems unlikely to take such radical measures. Hans van bylen, CEO of the group, mentioned in a conference call with analysts that the North American beauty care retail business showed signs of improvement, which was mainly driven by the hair and body care business. The dial brand, keratin and Got2b hair dye showed particularly color. As a matter of fact, Henkel is also strengthening its beauty care business in North America through continuous M & A. First, in July, Henkel announced the acquisition of a 51% stake in esalon.com, a Los Angeles Internet home-based personalized hair dye brand. A few days ago, Henkel acquired devacurl, a professional curl care brand in New York. Hans van bylen declined to comment on the industry's speculation that Henkel might be interested in acquiring the Wella brand owned by Coty, an American Beauty giant, but said that M & A was still part of the group's strategy. After a period of poor performance, Henkel group announced last month that its chief financial officer, Carsten knobel, will replace van bylen as its new chief executive in January next year.