The Germany-based company reported good results in its cosmetics and toiletries unit although first quarter results for the company as a whole were not quite so rosy.

Cosmetics and toiletries lead the way

Sales in the division increased 0.6 per cent to reach €708m which if adjusted for foreign exchange would be nearer 4.4 per cent, according to the company.

The division was the only one to report a positive sales increase and sales fell by 2.3 per cent for the company as a whole (a 1.7 per cent increase if adjusted for foreign exchange).

Operating profit for cosmetics and toiletries was particularly positive with an 8 per cent increase to €89m, equivalent to a 13.4 per cent increase if adjusted for foreign exchange.

Again, the result for the company as a whole was not as bright - a slight drop of 0.9 per cent from last year's quarter was recorded.

This was attributed to rising raw material costs that the company was not able to offset.

Hair care sales drive growth

Hair care products performed particularly well and the re-launch of the Schauma brand and the launch of the Taft Power line were cited as growth drivers.

In addition, the body care and skin care ranges continued to develop well, according to the company, which highlighted the good performance of the brands Fa, Dial and Diadermine.

Unlike many of the leading personal care manufacturers whose results in the developed markets of North America and Western Europe have suffered in the past few months, Henkel highlighted these areas as 'achieving particularly strong growth'.

Looking ahead

The company confirmed it expected organic sales in the division to grow above the market average and it was looking forward to a further increase in operating profit in 2008.

For the company as a whole it predicts organic sales growth of 3-4 percent whilst increasing operating profit in the mid teen percentage range.