to the roll out of Persil ProClean. Elsewhere, new Persil Power-Mix
Caps are pre-portioned formulas for Europe. For price-conscious
consumers in 25 emerging markets throughout Eastern Europe,
Latin America, and Africa and Middle East, Henkel rethought the
positioning of several of its heavy-duty detergent brands in the
value segment. These brands include Pemos in Russia, Tomi in
Hungary and 1-2-3 in Mexico.
Within the liquid detergent segment, the company rolled out
the PowerShot dispensing system in Western Europe under the Le
Chat, Mir and X-tra brands. In Africa/Middle East, the company
launched Persil Black Abaya, a UV-absorbing liquid formula to
keep black garments from fading.
Beauty care sales increased 8.1% (21% of corporate sales), with
a 2.1% organic increase. Henkel’s top 10 brands grew more quickly
than the rest of the company’s portfolio and once again accounted
for more than 90% of sales. The gains came despite market weakness in Western Europe and North America. Meanwhile, Africa,
Middle East and Asia (excluding Japan) continued to grow, but at
a slower pace, according to Henkel. Elsewhere, Eastern European
sales grew despite constant pressures and
Latin American results improved during
The introduction of caring hair colorants such as Keratin Color, a triple-keratin
formula, and the ammonia-free Palette
Perfect Care Color for beginners helped
boost hair color sales. For guys, Henkel
launched Schwarzkopf Men in Germany,
Russia and China.
By region, sales in Western Europe rose
5.6% due to gains in France and the UK,
which were partially offset by declines in
Switzerland and the northern European countries. Sales in Eastern
Europe declined 15%, due to devaluation of the Russian ruble; but
organic sales rose 7.3% due to gains in Russia and Turkey.
Latin American sales rose 7.9%, with organic growth of 8.8%.
Double-digit gains in Mexico led the way.
Sales in Asia increased 17.1%; organic sales rose 2.5%
Organic sales in Africa/Middle East rose 6.8%, as all units posted
gains. Nominal growth was 17.3%. North America’s organic sales rose
2.3% (up 26.5% when Forex effects and acquisitions are included).
Between the launch of Persil in the US and the acquisition of
Sun Products, one might nearly forget that Henkel got a new CEO
this year. In January, Kasper Rorsted surprised many when he announced plans to step down and move over to Adidas. Hans Van
Bylen, a 54 year-old Belgian who had been in charge of Henkel’s
beauty business, has replaced him. Van Bylen joined Henkel in
1984 and is just the second non-German to lead the company
(Rorsted, a native of Denmark, was the first).
For the first quarter of 2016, sales rose less than 1%. The company’s laundry and home care business unit recorded organic sales
growth of 4.7%, while beauty care’s organic sales increased 2.6%.
4. RECKITT BENCKISER UNITED KINGDOM
SALES: $13.0 BILLION
Key Personnel: Rakesh Kapoor, chief executive officer;
Amedeo Fasano, executive vice president, supply; Roberto
Funari, executive vice president, category development; Rob
De Groot, area executive vice president, ENA; Adrian Hennah,
chief financial officer; Frederic Larmuseau, area executive vice
president, developing markets; Darrell Stein, senior vice president information services; Deb Yates, senior vice president,
global human resources.
Major Products: Household and personal care products.
Brands include Vanish, Calgon, Woolite, Lysol, Dettol, Cillit
Bang, Harpic, Air Wick, Mortein, Dettol, Veet and Clearasil.
New Products: Health—Amopé foot care; Home—Vanish
Gold, Air Wick Life Scents, Air Wick Pur, Air Wick scented
oil warmer; Hygiene—Dettol Squeezy hand wash, Scholl
Velvet Smooth Wet & Dry, K-Y (acquisition). Home—Lysol
Disinfectant Max Cover Mist, Finish Supercharged Powerball,
and Harpic, Cillit Bang and Lysol Fresh Power 6.
Comments: Corporate sales were up 5%, driven by results in
emerging markets such as India and China. At the same time,
however, Brazil and parts of ASEAN were challenging, according to company executives.
Sales within the hygiene unit (41% of corporate sales) fell
3%. Sales of pest control products such as Mortein and SBP
were mixed, as sales were strong in Brazil and Australia, but
offset by weakness in India. Finish, too, turned in mixed results, as strong gains in the UK and emerging markets were
offset by weakness in the US. Sales of Dettol and Harpic were
up, helped along by the rollout of Dettol Squeezy hand wash
and Harpic bathroom cleaner in India.
Health care accounted for 33% of sales. The unit posted
a 10% increase in sales with exceptional results throughout
Europe and North America, as well as number of developing
markets. Reckitt Benckiser said all of its health powerbrands
contributed to the growth. New products providing a lift included Amopé, a foot care line that was launched in the fourth
quarter of 2014.
Sales of home care products (19%) fell 7%, due to negative
exchange rates and a lack of big innovation. Helping somewhat was the second half rollout of Air Wick Pure and Wax
Melts. Further hurting results was the weak laundry detergent
and fabric softener market in southern Europe.
For Q1, 2016, RB’s corporate sales rose 4%. Health care
sales increased 11%, hygiene sales improved 1% and home
The launch of Persil
Proclean gave a boost
to Henkel’s results.