Highlights of third quarter 2017 financial results.
- Very strong nominal sales growth: +4.9% to 4,981 million euros, strong organic sales growth (OSG) +3.0%
- EBIT margin* improvement to new high: +40 basis points to 18.0% Significant growth in earnings per preferred share (EPS)*: +8.5% to 1.54 euros
- Full year guidance: OSG of 2 to 4% and EBIT margin* increase to more than 17.0% confirmed, EPS* guidance raised to an increase of around 9%
Sales and earnings performance in the third quarter 2017
In the third quarter 2017 sales grew nominally by 4.9 percent to 4,981 million euros. Foreign exchange movements had an overall negative effect of 4.2 percent on sales. Acquisitions and divestments accounted for 6.1 percent of sales growth. Organic sales, which exclude the impact of foreign exchange effects and acquisitions/divestments, showed a strong increase of 3.0 percent.
The Adhesive Technologies business unit posted very strong organic sales growth of 4.9 percent. The Beauty Care business unit generated positive organic sales growth of 0.5 percent. The Laundry & Home Care business unit reported a positive increase in organic sales of 1.8 percent.
The emerging markets again made an above-average contribution to the organic growth of the group, showing a very strong increase in organic sales of 5.0 percent. The mature markets registered positive organic sales growth of 1.5 percent.
In the Western Europe region sales remained organically on the level of the prior-year quarter. In all other regions sales increased organically: In Eastern Europe, sales grew by 4.8 percent. Africa/Middle East posted sales growth of 3.2 percent. Sales in North America increased by 3.2 percent. Latin America achieved sales growth of 2.8 percent, and in the Asia-Pacific region, sales grew by 6.4 percent.
Adjusted operating profit (EBIT) improved by 7.1 percent to 897 million euros. All three business units contributed to this increase.
Adjusted return on sales (EBIT) rose by 0.4 percentage points to 18.0 percent.
Adjusted earnings per preferred share (EPS) grew by 8.5 percent from 1.42 euros to 1.54 euros.
Net working capital as a percentage of sales was 0.4 percentage points above the prior-year period, reaching 5.6 percent.
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