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Henkel Posts FY19 Adj. Profit Of EUR 2.35 Bln; Warns On FY20 Adj. Earnings

German consumer goods maker Henkel AG & Co. KGaA (HENOY, HENKY) Thursday reported that its fiscal 2019 adjusted net income after deducting non-controlling interests was 2.35 billion euros, compared to 2.60 billion euros in fiscal 2018.

Adjusted earnings per preferred share decreased 9.7 percent to 5.43 euros from 6.01 euros last year.

Adjusted operating profit or EBIT fell 7.9 percent to 3.22 billion euros from 3.50 billion euros in the prior year. Adjusted EBIT margin was 1.6 percentage points down to 16.0 percent.

Sales in fiscal 2019 rose 1.1 percent to 20.11 billion euros. Adjusted for these currency effects, sales grew 0.5 percent. Organic sales growth was flat at 0.0 percent.

Further, the company said it will propose to the Annual General Meeting on April 20 the same dividend as in the previous year, namely 1.85 euros per preferred share and 1.83 euros per ordinary share.

Looking ahead for 2020, Henkel expects to generate organic sales growth of 0 to 2 percent. Henkel expects an adverse effect on its earnings performance in 2020. The adjusted EBIT margin is expected to reach around 15 percent. Adjusted earnings per preferred share are expected to decrease in the mid- to high single-digit percentage range at constant exchange rates.

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