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UPDATE 1-Henkel sales boosted by adhesives unit
May 11, 2017 / 6:02 AM / in 7 months

UPDATE 1-Henkel sales boosted by adhesives unit

* Q1 adj. EBIT 854 mln euros vs analyst consensus 839 mln

* Q1 sales 5.064 bln euros vs consensus for 5.02 bln

* 2017 outlook confirmed

* Organic sales up 5.5 pct at adhesives, 3.0 pct at laundry (Adds details, background)

BERLIN, May 11 (Reuters) - German consumer goods group Henkel reported first-quarter organic sales growth of 4 percent, at the top end of its annual guidance range, driven by a better-than-expected performance from its adhesives business.

Quarterly earnings before interest and taxes (EBIT), adjusted for one-offs, rose 14 percent to 854 million euros ($928 million) on sales of 5.064 billion euros, ahead of average analyst estimates for 839 million and 5.02 billion respectively.

Known for laundry detergent Persil, beauty line Schwarzkopf and adhesives brand Loctite, Henkel stuck to its standard forecast for organic sales growth in 2017 of 2 to 4 percent, and a 7 to 9 percent increase in adjusted earnings per preferred share.

Chief Executive Hans Van Bylen said he expected the “volatile and uncertain” market environment to persist this year, with prices for commodities set to increase at the same time as more promotional activity in the consumer goods market.

Quarterly organic sales rose 5.5 percent at its adhesives unit, 3.0 percent at laundry and home care and 2.3 percent at its beauty care business, with emerging markets expanding at 6.7 percent compared to 2.1 percent in mature markets.

The consumer goods sector has had a mixed start to the year, with Unilever reporting underlying sales growth of 2.9 percent, while cosmetics giant L‘Oreal saw an overall increase of 4.2 percent.

$1 = 0.9203 euros Reporting by Emma Thomasson; Editing by Maria Sheahan

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