Comparison between actual business performance and guidance
In our 2013 reports, we expected organic sales growthorganic sales growth
Growth in revenues after adjusting for effects arising from acquisitions, divestments and foreign exchange differences – i.e. “top line” growth generated from within.
of between 3 and 5 percent for the Henkel Group in fiscal 2013. Compared to the figures for 2012, we expected adjusted return on sales (EBIT)return on sales (EBIT)
Operating business metric derived from the ratio of EBIT to revenues. Also known as EBIT margin.
to increase to about 15 percent, and adjusted earnings per preferred share to rise by about 10 percent.
We delivered on our sales and earnings guidance. Our organic growth rate of 3.5 percent is within the guidance corridor. Each of the three business units made an important contribution to this growth. At Group level, we also posted a significant increase in adjusted return on sales from 14.1 to 15.4 percent, as well as a 10.0 percent improvement in adjusted earnings per preferred share, increasing the figure to 4.07 euros (2012: 3.70 euros).
Additionally, prices for direct materials (raw materials, packaging, and purchased goods and services) remained at the level of the prior year, as anticipated in our reports for 2013. Our restructuring expenses totaled 159 million euros, exceeding the expected level of 125 million euros. This reflects our ongoing efforts to adjust our structures promptly to changing market conditions. We invested 404 million euros in property, plant and equipment. We adjusted a number of individual project schedules in response particularly to the geopolitical situation in Africa/Middle East.
|Guidance for 2013||Performance in 2013|
|Organic sales growth||Henkel Group: 3–5 percent |
All business units: 3–5 percent
|Henkel Group: 3.5 percent |
Laundry & Home Care: 5.7 percent
Beauty Care: 3.0 percent
Adhesive Technologies: 2.7 percent
|Adjusted return on sales||Increase to about 15 percent||Increase to 15.4 percent|
|Adjusted earnings per preferred share||Increase of about 10 percent||Increase of 10.0 percent|
|Prices for direct materials||at prior-year level||at prior-year level|
|Restructuring charges||around 125 million euros||159 million euros|
|Investments in property, plant and equipment||around 450 million euros||404 million euros|
|in million euros||2012||%||2013||%||Change|
|Cost of sales||–8,738||–52.9||– 8,497||– 52.0||–2.8 %|
|Gross profit||7,772||47.1||7,858||48.0||1.1 %|
|Marketing, selling and distribution expenses||–4,278||–25.9||–4,199||– 25.7||–1.8 %|
|Research and development expenses||–406||–2.6||–414||– 2.6||2.0 %|
|Administrative expenses||–727||–4.4||–749||– 4.5||3.0 %|
|Other operating income/charges||–26||–0.1||20||0.2||–|
|Adjusted operating profit (EBIT)||2,335||14.1||2,516||15.4||7.8 %|