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Reckitt Benckiser: Strong HY & 2Q 2011 results, FY 2011 targets confirmed
FOCUS industrial application markets, the company says. Consumer Chemicals continued to enjoy robust growth across all its activities in 1H 2011. The organic growth in volumes (not relating to the scope impact arising from the acquisition of Feixiang) totalled 10.8% compared to the same period last year. As in the second quarter, this growth was primarily driven by the Oil & Gas and Agrochemicals markets due to high demand and innovation. China’s Feixiang Chemicals continued to record sharp growth and its integration process has made steady progress in line with objectives. The new surfactants plant, currently under construction in Zhuhai, China, with a capacity of 50,000 tonnes/y should be operational in 3Q 2011 [ibid, Jul 2011]. Due to the steady demand across all the markets and regions served by Consumer Chemicals, the development of an innovative and environmentally friendly product offering and the acquisition of Feixiang, making the Group the international leader in surfactants in Asia, this Business Cluster reported an increase in operating profitability, as a result of activity totalling €45 M over the period (€28 M arising from organic growth and €17 M from the scope impact relating to the acquisition of Feixiang Chemicals). Furthermore, excellent sale price management enabled Consumer Chemicals to record a full-period positive net impact of €38 M between the two reference periods. Transactional foreign exchange rate fluctuations generated a negative impact of €14 M, primarily due to the depreciation of the US dollar against the euro and the Brazilian real. Fixed costs rose by €24 M due to the rise in salaries and growth projects. In other recent company news, Belgian group Solvay launched its friendly cash offer [ibid, Jun 2011] for Rhodia shares at €31.60 per share on 14 Jun and notified the European Commission (EC) of its takeover bid on 30 Jun. The EC responded by approving the €3.4 bn acquisition on 5 Aug, having decided that the transaction would not have a significant effect on the relevant markets. The public takeover bid was scheduled to close on 24 Aug. The merged entity will have a turnover of
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€12 bn (40% in emerging markets) and a workforce of 31,000. Rhodia Results 1H 2011, 3 Aug 2011, 11-12,31 & Press releases from: Rhodia SA, Immeuble Coeur Defense, Tour A, 110 esplanade Charles de Gaulle, 92400 Courbevoie, France, tel: +33 1 5356 6464, fax: +33 1 5356 6459, website: http://www.rhodia.com (28 Jul & 5 Aug 2011)
Reckitt Benckiser: Strong HY & 2Q 2011 results, FY 2011 targets confirmed For its 1H 2011 (period ends 30 Jun 2011), UK household products group Reckitt Benckiser plc reported a 12% rise in its adjusted net profit at constant exchange rates to £802 M (c €925 M), with net revenue up 15% on the same basis to £4.621 bn. In 2Q 2011, the company’s adjusted net income was £418 M on net revenue of £2.338 bn, up 13% and 16%, respectively, at constant exchange rates. According to outgoing CEO Bart Becht, the results are ahead of the group’s full-year (FY) 2011 targets, with growth in the base business driven in particular by ‘an excellent result’ in developing markets. Growth was boosted by innovations such as the continued roll-out of the Dettol No Touch Hand Soap System into new markets as well as ‘a significant level of investment in media and promotional spend’, he says. As a result of these strong results, the company says it is well-positioned to achieve its FY 2011 targets of 12% net revenue growth and 10% adjusted net profit growth (both at constant exchange), representing ‘another year of above industry-average growth’. For 2Q 2011, the Europe segment of Reckitt Benckiser (44% of net revenue) reported net revenue of £1010 M (£846 M for 2Q 2010) and operating profit of £218 M (£195 M). For 1H 2011, this segment reported net revenue of £2038 M (£1752 M for its 1H 2010) and operating profit of £438 M (£401 M). Volume shares improved in the first four months of 2011 behind significant media spend and increased investment in price and promotion. Increased investment in price and promotion resulted in a small like-for-like (LFL) reduction in net revenue in both 2Q and 1H 2011. The increase in Personal Care was driven by the continued roll-out of the Dettol No Touch Hand Soap System,
which has delivered a very encouraging early result. Growth in Surface Care came from Dettol and Harpic, Dishwashing was marginally down in a slower category, while the decline in Fabric Care was largely due to weakness in Laundry Detergents in southern Europe. Vanish, although still down year on year, is showing an improving net revenue and market share trend. In the North America and Australia region (24% of net revenue), the company posted a 4% increase (+2% LFL) in 2Q net revenue to £541 M, with adjusted operating profit up 17% to £115 M. For the half year, net revenue increased 5% (+2% LFL) to £1094 M and adjusted operating profit rose 19% to £241 M. Growth came from Health & Personal Care, Dishwashing – where Finish Quantum and All-in-1 tablets and gel packs contributed – and Food. In the Developing Markets geographic area (24% of net revenue), net revenue increased by 23% year on year (+14% LFL) in both 2Q and 1H 2011 to £583 M and £1129 M, respectively. Adjusted operating profit improved by 39% to £103 M in 2Q 2011 and by 35% to £188 M in 1H 2011. Dettol continued to grow well, particularly in bar soaps, and boosted by the introduction of a men’s range, the company reports. The combined Household and Health & Personal Care areas reported net revenue of £2054 M in 2Q 2011, up 15% (+3% LFL) year on year. Fabric Care accounted for £382 M (£398 M), Surface Care £329 M (£343 M), Home Care £286 M (£268 M), and Dishwashing £218 M (£216 M); and operating profit was £414 M (£352 M). For its 1H 2011, this segment has reported net revenue of £4112 M (£3608 M for its 1H 2010), of which: Fabric Care accounted for £757 M (£805 M), Surface Care £692 M (£686 M), Home Care £569 M (£562 M), and Dishwashing £453 M (£453 M); and operating profit was £829 M (£712 M). New product launches announced for the second half of 2011 include the Dettol High Performance for Men range of soaps and shower gels; Vanish Sensitive, which is claimed to offer the same stain removal from fabrics as the existing Oxi Action products but with greater gentleness on the skin; and
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FOCUS Cillit Bang Active Foam for easier, faster cleaning of large bathroom surfaces. Reckitt Benckiser Results 1H 2011, 25 Jul 2011, 46,12-13 (Reckitt Benckiser plc, 103-105 Bath Road, Slough, Berkshire, SL1 3UH, UK, tel: +44 1753 217800, fax: +44 1753 217899, website: http://www.reckittbenckiser.com)
Henkel continues solid performance in 2Q 2011 For its 2Q 2011 (period ends 30 Jun 2011), German consumer goods manufacturer Henkel AG & Co KGaA continued its solid performance ‘despite the challenging market environment’, posting a 1.6% increase in sales to €3.953 bn. Excluding the effects of foreign exchange rates and acquisitions/divestments, organic sales growth was 6.3%, with all three business sectors contributing, Henkel says. As a result, the company reports that it was able to further expand global market share in all three sectors, with the consumer businesses achieving ‘historic highs’. Adjusted operating profit rose 8.0% to €514 M while net income for the quarter increased by 33.9% to €375 M. In the first six months of 2011, the company increased sales by 5.1% to €7.78 bn (organic sales growth of 6.7%) and adjusted operating profit increased by 9.9% to €987 M. Net income for the half year rose by 21.8% to €665 M. Despite higher raw material prices, profitability improved for all three business sectors, driven by increased selling prices, innovations and ‘measures to further enhance efficiency’, Henkel reports. The company’s Laundry & Home Care segment reported sales of €1076 M (€1086 M for its 2Q 2010), which represented organic sales growth of 3.7%. Volume growth of 2.9% and a price effect of 0.8% compared to 2Q 2010 offset the effects of further contraction of the relevant markets, Henkel says. All regions contributed to the organic growth with particularly positive momentum from the growth areas of Eastern Europe and Africa/ East, although some markets in the latter region have nevertheless not yet fully recovered from their political upheavals. Sales in North America increased substantially, despite the markets undergoing further 6
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contraction. Sales growth was also achieved in Western Europe – due particularly to further strong growth in Germany. According to Henkel, this positive performance in contracting markets resulted in a historic high for its global market share. EBIT for 2Q 2011 increased 14.8% to €157 M while the segment’s adjusted operating profit increased by 2.8% to €140 M, boosted by a gain arising from the disposal of Henkel’s branded consumer goods business in India [Focus on Surfactants, Jul 2011]. For its 1H 2011, the Laundry & Home Care segment reported sales of €2148 M (€2135 M for 1H 2010) and EBIT of €257 M (€288 M). With organic sales growth of 5.4%, the Cosmetics/Toiletries business sector outperformed a very strong prior-year quarter. Once again, the rate of growth outstripped that of the relevant markets, and volumes experienced a significant rise, Henkel says. The business sector also succeeded in further expanding its market shares. Net sales amounted to €881 M, 1.9% above the figure for the prior-year quarter. As in previous quarters, particular impetus came from Eastern Europe, Africa/Middle East, Latin America and Asia, but sales growth was also achieved in the mature markets. In North America particularly, Henkel generated a significant improvement in sales thanks to a number of new product launches. Business performance in the mature markets of Asia-Pacific was similarly very good. Sales in Western Europe remained below the strong levels of the prior-year quarter. Adjusted operating profit for the segment rose by a substantial 11.0% to €124 M. Once more, cost reductions and efficiency enhancements made a substantial contribution to the increase in earnings. Again in the second quarter, the business sector succeeded in offsetting the increase in raw material and packaging prices. Operating profit rose by 24.7% to €140 M. Press release from: Henkel AG & Co KGaA, Henkelstrasse 67, 40589 Düsseldorf, Germany, tel: +49 211 7970, fax: +49 211 798 4008, website: http://www.henkel.com (10 Aug 2011)
Novozymes’ 1H 2011 results In the first half of 2011, Novozymes posted sales of DKR 5.229 bn (c
€702 M), up 9% in DKR and 11% in local currencies (LCY) compared to 1H 2010. EBIT was DKR 1.213 bn, an increase of 9% from 1H 2010 while net profit rose 15% year on year (y-oy) to DKR 946 M. By geographical area, sales in Europe, the Middle East and Africa (36% of total) were up 7% y-o-y in 1H 2011 to DKR 1.863 bn, North American sales (37% of total) increased 9% y-o-y to DKR 1.945 bn, sales in the Asia Pacific (19%) rose 7% y-o-y to DKR 975 M and Latin American sales (8%) increased 29% y-o-y to DKR 446 M. Sales of Household Care Enzymes were among the strongest sales growth contributors in all regions except North America. Globally, sales of Household Care Enzymes increased by 9% in LCY and by 8% in DKR to DKR 1.621 bn (1H 2010: DKR 1.499 bn), accounting for 31% of Novozymes’ total sales. Growth continued to be driven by increased enzyme penetration across detergent tiers to enhance wash performance, enable low-temperature washing and replace traditional chemicals in detergent formulations. Sales of Household Care Enzymes to the emerging markets continued to be a strong growth driver throughout 1H 2011, the company reports. Novozymes Group Financial Statement for 1H 2011, 11 Aug 2011, 1,2,4,14 (Novozymes A/S, Krogshojvej 36, 2880 Bagsvaerd, Denmark, tel: +45 4446 0000, fax: +45 4446 9999, e-mail: [email protected], website: http://www.novozymes.com)
Dow Chemical 2Q 2011: Performance Product sales Dow Chemical Co’s sales by its Performance Products segment were $3.2 bn in 2Q 2011. Sales excluding divestitures were up 29% compared with 2Q 2010. Prices increased 20%, as a result of pricing initiatives to offset higher raw material costs. Volume increased 9% and grew in all geographic areas, with double-digit gains in North America and Asia Pacific. EBITDA for Performance Products was $387 M (2Q 2010: $330 M). Amines posted a double-digit volume increase, driven by ethanolamines used in agricultural chemicals and by demand for ethyleneamines in China. Polyglycols, Surfactants and Fluids reported volume growth, led by Latin America and Asia OCTOBER 2011
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€12 bn (40% in emerging markets) and a workforce of 31,000. Rhodia Results 1H 2011, 3 Aug 2011, 11-12,31 & Press releases from: Rhodia SA, Immeuble Coeur Defense, Tour A, 110 esplanade Charles de Gaulle, 92400 Courbevoie, France, tel: +33 1 5356 6464, fax: +33 1 5356 6459, website: http://www.rhodia.com (28 Jul & 5 Aug 2011)
Reckitt Benckiser: Strong HY & 2Q 2011 results, FY 2011 targets confirmed For its 1H 2011 (period ends 30 Jun 2011), UK household products group Reckitt Benckiser plc reported a 12% rise in its adjusted net profit at constant exchange rates to £802 M (c €925 M), with net revenue up 15% on the same basis to £4.621 bn. In 2Q 2011, the company’s adjusted net income was £418 M on net revenue of £2.338 bn, up 13% and 16%, respectively, at constant exchange rates. According to outgoing CEO Bart Becht, the results are ahead of the group’s full-year (FY) 2011 targets, with growth in the base business driven in particular by ‘an excellent result’ in developing markets. Growth was boosted by innovations such as the continued roll-out of the Dettol No Touch Hand Soap System into new markets as well as ‘a significant level of investment in media and promotional spend’, he says. As a result of these strong results, the company says it is well-positioned to achieve its FY 2011 targets of 12% net revenue growth and 10% adjusted net profit growth (both at constant exchange), representing ‘another year of above industry-average growth’. For 2Q 2011, the Europe segment of Reckitt Benckiser (44% of net revenue) reported net revenue of £1010 M (£846 M for 2Q 2010) and operating profit of £218 M (£195 M). For 1H 2011, this segment reported net revenue of £2038 M (£1752 M for its 1H 2010) and operating profit of £438 M (£401 M). Volume shares improved in the first four months of 2011 behind significant media spend and increased investment in price and promotion. Increased investment in price and promotion resulted in a small like-for-like (LFL) reduction in net revenue in both 2Q and 1H 2011. The increase in Personal Care was driven by the continued roll-out of the Dettol No Touch Hand Soap System,
which has delivered a very encouraging early result. Growth in Surface Care came from Dettol and Harpic, Dishwashing was marginally down in a slower category, while the decline in Fabric Care was largely due to weakness in Laundry Detergents in southern Europe. Vanish, although still down year on year, is showing an improving net revenue and market share trend. In the North America and Australia region (24% of net revenue), the company posted a 4% increase (+2% LFL) in 2Q net revenue to £541 M, with adjusted operating profit up 17% to £115 M. For the half year, net revenue increased 5% (+2% LFL) to £1094 M and adjusted operating profit rose 19% to £241 M. Growth came from Health & Personal Care, Dishwashing – where Finish Quantum and All-in-1 tablets and gel packs contributed – and Food. In the Developing Markets geographic area (24% of net revenue), net revenue increased by 23% year on year (+14% LFL) in both 2Q and 1H 2011 to £583 M and £1129 M, respectively. Adjusted operating profit improved by 39% to £103 M in 2Q 2011 and by 35% to £188 M in 1H 2011. Dettol continued to grow well, particularly in bar soaps, and boosted by the introduction of a men’s range, the company reports. The combined Household and Health & Personal Care areas reported net revenue of £2054 M in 2Q 2011, up 15% (+3% LFL) year on year. Fabric Care accounted for £382 M (£398 M), Surface Care £329 M (£343 M), Home Care £286 M (£268 M), and Dishwashing £218 M (£216 M); and operating profit was £414 M (£352 M). For its 1H 2011, this segment has reported net revenue of £4112 M (£3608 M for its 1H 2010), of which: Fabric Care accounted for £757 M (£805 M), Surface Care £692 M (£686 M), Home Care £569 M (£562 M), and Dishwashing £453 M (£453 M); and operating profit was £829 M (£712 M). New product launches announced for the second half of 2011 include the Dettol High Performance for Men range of soaps and shower gels; Vanish Sensitive, which is claimed to offer the same stain removal from fabrics as the existing Oxi Action products but with greater gentleness on the skin; and
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FOCUS Cillit Bang Active Foam for easier, faster cleaning of large bathroom surfaces. Reckitt Benckiser Results 1H 2011, 25 Jul 2011, 46,12-13 (Reckitt Benckiser plc, 103-105 Bath Road, Slough, Berkshire, SL1 3UH, UK, tel: +44 1753 217800, fax: +44 1753 217899, website: http://www.reckittbenckiser.com)
Henkel continues solid performance in 2Q 2011 For its 2Q 2011 (period ends 30 Jun 2011), German consumer goods manufacturer Henkel AG & Co KGaA continued its solid performance ‘despite the challenging market environment’, posting a 1.6% increase in sales to €3.953 bn. Excluding the effects of foreign exchange rates and acquisitions/divestments, organic sales growth was 6.3%, with all three business sectors contributing, Henkel says. As a result, the company reports that it was able to further expand global market share in all three sectors, with the consumer businesses achieving ‘historic highs’. Adjusted operating profit rose 8.0% to €514 M while net income for the quarter increased by 33.9% to €375 M. In the first six months of 2011, the company increased sales by 5.1% to €7.78 bn (organic sales growth of 6.7%) and adjusted operating profit increased by 9.9% to €987 M. Net income for the half year rose by 21.8% to €665 M. Despite higher raw material prices, profitability improved for all three business sectors, driven by increased selling prices, innovations and ‘measures to further enhance efficiency’, Henkel reports. The company’s Laundry & Home Care segment reported sales of €1076 M (€1086 M for its 2Q 2010), which represented organic sales growth of 3.7%. Volume growth of 2.9% and a price effect of 0.8% compared to 2Q 2010 offset the effects of further contraction of the relevant markets, Henkel says. All regions contributed to the organic growth with particularly positive momentum from the growth areas of Eastern Europe and Africa/ East, although some markets in the latter region have nevertheless not yet fully recovered from their political upheavals. Sales in North America increased substantially, despite the markets undergoing further 6
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contraction. Sales growth was also achieved in Western Europe – due particularly to further strong growth in Germany. According to Henkel, this positive performance in contracting markets resulted in a historic high for its global market share. EBIT for 2Q 2011 increased 14.8% to €157 M while the segment’s adjusted operating profit increased by 2.8% to €140 M, boosted by a gain arising from the disposal of Henkel’s branded consumer goods business in India [Focus on Surfactants, Jul 2011]. For its 1H 2011, the Laundry & Home Care segment reported sales of €2148 M (€2135 M for 1H 2010) and EBIT of €257 M (€288 M). With organic sales growth of 5.4%, the Cosmetics/Toiletries business sector outperformed a very strong prior-year quarter. Once again, the rate of growth outstripped that of the relevant markets, and volumes experienced a significant rise, Henkel says. The business sector also succeeded in further expanding its market shares. Net sales amounted to €881 M, 1.9% above the figure for the prior-year quarter. As in previous quarters, particular impetus came from Eastern Europe, Africa/Middle East, Latin America and Asia, but sales growth was also achieved in the mature markets. In North America particularly, Henkel generated a significant improvement in sales thanks to a number of new product launches. Business performance in the mature markets of Asia-Pacific was similarly very good. Sales in Western Europe remained below the strong levels of the prior-year quarter. Adjusted operating profit for the segment rose by a substantial 11.0% to €124 M. Once more, cost reductions and efficiency enhancements made a substantial contribution to the increase in earnings. Again in the second quarter, the business sector succeeded in offsetting the increase in raw material and packaging prices. Operating profit rose by 24.7% to €140 M. Press release from: Henkel AG & Co KGaA, Henkelstrasse 67, 40589 Düsseldorf, Germany, tel: +49 211 7970, fax: +49 211 798 4008, website: http://www.henkel.com (10 Aug 2011)
Novozymes’ 1H 2011 results In the first half of 2011, Novozymes posted sales of DKR 5.229 bn (c
€702 M), up 9% in DKR and 11% in local currencies (LCY) compared to 1H 2010. EBIT was DKR 1.213 bn, an increase of 9% from 1H 2010 while net profit rose 15% year on year (y-oy) to DKR 946 M. By geographical area, sales in Europe, the Middle East and Africa (36% of total) were up 7% y-o-y in 1H 2011 to DKR 1.863 bn, North American sales (37% of total) increased 9% y-o-y to DKR 1.945 bn, sales in the Asia Pacific (19%) rose 7% y-o-y to DKR 975 M and Latin American sales (8%) increased 29% y-o-y to DKR 446 M. Sales of Household Care Enzymes were among the strongest sales growth contributors in all regions except North America. Globally, sales of Household Care Enzymes increased by 9% in LCY and by 8% in DKR to DKR 1.621 bn (1H 2010: DKR 1.499 bn), accounting for 31% of Novozymes’ total sales. Growth continued to be driven by increased enzyme penetration across detergent tiers to enhance wash performance, enable low-temperature washing and replace traditional chemicals in detergent formulations. Sales of Household Care Enzymes to the emerging markets continued to be a strong growth driver throughout 1H 2011, the company reports. Novozymes Group Financial Statement for 1H 2011, 11 Aug 2011, 1,2,4,14 (Novozymes A/S, Krogshojvej 36, 2880 Bagsvaerd, Denmark, tel: +45 4446 0000, fax: +45 4446 9999, e-mail: [email protected], website: http://www.novozymes.com)
Dow Chemical 2Q 2011: Performance Product sales Dow Chemical Co’s sales by its Performance Products segment were $3.2 bn in 2Q 2011. Sales excluding divestitures were up 29% compared with 2Q 2010. Prices increased 20%, as a result of pricing initiatives to offset higher raw material costs. Volume increased 9% and grew in all geographic areas, with double-digit gains in North America and Asia Pacific. EBITDA for Performance Products was $387 M (2Q 2010: $330 M). Amines posted a double-digit volume increase, driven by ethanolamines used in agricultural chemicals and by demand for ethyleneamines in China. Polyglycols, Surfactants and Fluids reported volume growth, led by Latin America and Asia OCTOBER 2011