Henkel Annual Report 2011 - Henkel AG & Co. KGaA Annual Report ...

More documents

Recommendations

Info

80 Group management report Cosmetics/Toiletries Henkel Annual Report 2011 Cosmetics/Toiletries • Organic sales growth of 5.4 percent • Adjusted 1 operating profit improved by 10.5 percent to 482 million euros • Adjusted 1 return on sales increased by 0.9 percentage points to 14.2 percent • Return on capital employed (ROCE) up 3.4 percentage points to 23.5 percent • Economic value added (EVA ® ) improved by 83 million euros to 290 million euros Top brands Innovations 2011 Gliss Kur Ultimate Repair This innovative hair repair series with triple-concentrated liquid hair components effectively repairs dry hair both internally and at the surface, making hair more supple, lustrous and resilient. www.glisskur.schwarzkopf.de Key financials * Fa NutriSkin Our first body care line to feature a unique combination of seven nourishing care ingredients for protecting the skin from dryness and generating an irresistibly soft skin feeling. www.fa.com in million euros 2010 2011 +/– Sales 3,269 3,399 4.0 % Proportion of Henkel sales 22 % 22% – Operating profit (EBIT) 411 471 14.6 % Adjusted operating profit (EBIT) 436 482 10.5 % Return on sales (EBIT) 12.6 % 13.8% 1.2 pp Adjusted return on sales (EBIT) Return on capital employed 13.3 % 14.2% 0.9 pp (ROCE) 20.1 % 23.5% 3.4 pp Economic value added (EVA ® ) 207 290 40.6 % pp = percentage points * Calculated on the basis of units of 1,000 euros; figures commercially rounded. 1 Adjusted for one-time charges/gains and restructuring charges. Sales development * Bonacure Oil Miracle Our revolutionary finishing product for daily hair care features a luxuriant oil to intensively nourish the hair, instantly giving it a rich gloss without that heavy feel. Available as an intensive treatment with argan oil or with marula oil for lighter applications. www.schwarzkopf-professional.de in percent 2011 Change versus previous year 4.0 Foreign exchange –1.1 Adjusted for foreign exchange 5.1 Acquisitions/divestments –0.3 Organic 5.4 of which price –0.3 of which volume 5.7 * Calculated on the basis of units of 1,000 euros.
Henkel Annual Report 2011 Economic environment and market position The world cosmetics market of relevance to us was characterized in 2011 by intense displacement competition and predominantly declining demand. Despite the persistently difficult and highly competitive environment, we were able to globally expand our market shares and therefore further strengthen our leading position in our relevant markets across the world. Our core markets in Western Europe and North America remained weak as a result of the difficult economic conditions and low consumer confidence prevailing. Increased promotional activities, growing price pressure and a decline in the pricing level were particularly noticeable in the Western European branded goods market for hair cosmetics and the US body care market. In numerous segments, volume expansion failed to compensate for these developments. Despite this challenging market background, however, we succeeded in maintaining our growth trend of recent years, again outstripping the market overall. As a result, we were able to further expand our market shares in Western Europe and extend our leading position in the hair cosmetics business. We also consolidated our position in our core segments in North America. The emerging markets of Africa/Middle East, Latin America and Asia (excluding Japan) continued their positive development. By contrast, our market in Eastern Europe failed for the first time to show any growth against the background of increasing displacement compe tition. Nevertheless, we were able to further expand our business in the emerging markets in general, generating disproportionate growth and, as a result, gaining significant market share. In the hair salon market, persistent customer reluctance led to a decline in overall demand. However, we were able to buck this trend, growing our Schwarzkopf Professional Hair Salon business and thus further consolidating our position as the world number three in this segment. Business activity and strategy The Cosmetics/Toiletries business sector is active in the Branded Consumer Goods business area with Hair Cosmetics, Body Care, Skin Care and Oral Care, as well as in the professional Hair Salon business. Expansion in the Branded Consumer Goods business in Western Europe and North America is focused on further increasing market share. The objective of our growth strategy is to extend our innovation leadership. To this end, we pursue a consistent, pro-active innovation strategy accompanied by strict cost management to allow us to step up our market investments and increase profitability. In Asia, the Middle East and other emerging markets, we further drive business development through the rapid expansion of our portfolio. In the Hair Salon business, we continue our strategy of globalization, generating growth momentum particularly in Asia, Latin America and the Middle East. Organic development is at the center of our growth strategy. In a market environment characterized by strong competition, we pursue this by focusing on our top brands, ensuring the rapid international launch of innovations with above-average profitability, and by selectively driving regional expansion. Further key success factors include strong support for our top brands through media advertising and promotional activities. We regularly analyze our businesses and brands as part of our pro-active portfolio management approach. In our Branded Consumer Goods business area, our focus is on the international expansion of our core businesses of Hair Cosmetics, Body Care, Oral Care and Skin Care. Through targeted portfolio management and the associated marketing measures aimed at strengthening our top brands, our ten largest brands again grew substantially faster than the overall portfolio in 2011. They now contribute more than 90 percent to the business sector’s sales revenues. In addition to strengthening our brand equities, we focus particularly on the growth potential available in our key accounts. We also endeavor to drive forward our Hair Salon business on the basis of efficient sales and distribution structures backed up by a steady flow of innovations. And we are constantly looking to develop new regional potential on a selective basis. Through our pro -active innovation strategy and the consistent further strengthening of our brand equities, we expect to continue generating dynamic, profitable growth. In 2011, we further increased our innovation rate 1 to 43 percent. And we are developing additional growth potential through expansion of strategic partnerships with our customers. 1 Percentage share of sales generated with new products launched onto the market within the last three years. Group management report Cosmetics/Toiletries 43% innovation rate. 81
Page 1 and 2:
Annual Report 2011
Page 3 and 4:
Laundry & Home Care Leading market
Page 5 and 6:
Henkel Annual Report 2011 1 Our com
Page 7 and 8:
Henkel Annual Report 2011 Foreword
Page 9 and 10:
Henkel Annual Report 2011 Foreword
Page 11 and 12:
Henkel Annual Report 2011 Report of
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Henkel Annual Report 2011 Managemen
Page 19 and 20:
Henkel Annual Report 2011 Excellenc
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Henkel Annual Report 2011 Shares an
Page 31 and 32:
Henkel Annual Report 2011 Shares an
Page 33 and 34: Henkel Annual Report 2011 Group man
Page 69 and 70: Henkel Annual Report 2011 program h
Page 71 and 72: Henkel Annual Report 2011 Procureme
Page 73 and 74: Henkel Annual Report 2011 manufactu
Page 75 and 76: Henkel Annual Report 2011 Major Hen
Page 77 and 78: Henkel Annual Report 2011 Fritz Hen
Page 79 and 80: Henkel Annual Report 2011 For our i
Page 81 and 82: Henkel Annual Report 2011 Economic
Page 83: Henkel Annual Report 2011 Due to it
Page 87 and 88: Henkel Annual Report 2011 brands Pe
Page 89 and 90: Henkel Annual Report 2011 Economic
Page 91 and 92: Henkel Annual Report 2011 Business
Page 93 and 94: Henkel Annual Report 2011 ing respo
Page 95 and 96: Henkel Annual Report 2011 cover the
Page 97 and 98: Henkel Annual Report 2011 Overall r
Page 99 and 100: Henkel Annual Report 2011 We also e
Page 101 and 102: Henkel Annual Report 2011 Notes to
Page 103 and 104: Henkel Annual Report 2011 Equity an
Page 105 and 106: Henkel Annual Report 2011 Consolida
Page 107 and 108: Henkel Annual Report 2011 Group seg
Page 109 and 110: Henkel Annual Report 2011 Accountin
Page 111 and 112: Henkel Annual Report 2011 disclosed
Page 113 and 114: Henkel Annual Report 2011 previous
Page 115 and 116: Henkel Annual Report 2011 Consolida
Page 117 and 118: Henkel Annual Report 2011 Book valu
Page 119 and 120: Henkel Annual Report 2011 Accumulat
Page 121 and 122: Henkel Annual Report 2011 Disclosed
Page 123 and 124: Henkel Annual Report 2011 cash, pro
Page 125 and 126: Henkel Annual Report 2011 Fair valu
Page 127 and 128: Henkel Annual Report 2011 Reconcili
Page 129 and 130: Henkel Annual Report 2011 (16) Inco
Page 131 and 132: Henkel Annual Report 2011 (18) Othe
Page 133 and 134: Henkel Annual Report 2011 revaluati
Page 135 and 136:
Henkel Annual Report 2011 The net r
Page 137 and 138:
Henkel Annual Report 2011 Cash flow
Page 139 and 140:
Henkel Annual Report 2011 Credit ri
Page 141 and 142:
Henkel Annual Report 2011 Because w
Page 143 and 144:
Henkel Annual Report 2011 Notes to
Page 145 and 146:
Henkel Annual Report 2011 Allocatio
Page 147 and 148:
Henkel Annual Report 2011 Other dis
Page 149 and 150:
Henkel Annual Report 2011 The numbe
Page 151 and 152:
Henkel Annual Report 2011 For regio
Page 153 and 154:
Henkel Annual Report 2011 Cash flow
Page 155 and 156:
Henkel Annual Report 2011 Recommend
Page 157 and 158:
Henkel Annual Report 2011 Independe
Page 159 and 160:
Henkel Annual Report 2011 Responsib
Page 161 and 162:
Henkel Annual Report 2011 Subcommit
Page 163 and 164:
Henkel Annual Report 2011 Managemen
Page 165 and 166:
Henkel Annual Report 2011 Quarterly
Page 167 and 168:
Henkel Annual Report 2011 Glossary
Page 169 and 170:
Credits Published by: Henkel AG & C
show all

Henkel Annual Report 2011 - Henkel AG & Co. KGaA Annual Report ...

Create successful ePaper yourself

Delete template?

Save as template?