Good morning ladies gentlemen, and welcome to our conference call, first I like to focus on the key developments of the full year 2013, as well as the progress we made last year towards our strategic goals for 2016. Then Carsten will provide you with the full year financials in greater detail, and after that I’ll close my presentation with a summary of 2013 and then the outlook for 2014. And finally, we’ll take your questions.
Moving on, I’d like to begin by reminding everyone that the presentation, which contains the usual formal disclaimer to forward-looking statements within the meaning of relevant US legislation, can be accessed via our website at henkel.com/ir. The presentation and discussion are conducted subject to the disclaimer. We will not read the disclaimer but propose we take it as read into the records for the purpose of the conference call.
Now, let me get on. I’ll speak about the key developments for 2013, our strategic priorities 2016 progress in 2013. Carsten will take us through the financials and I’ll summarize and speak about the outlook. So let’s get started. Overall, we had an organic sales growth of 3.5% for the full year an EBIT margin of 15.4% after hitting our target of 14% or 14.1% in 2012, adjusted EPS growth of 10%, net working capital in percentage of sales of 2.3%, a net financial position on our balance sheet of €959 million and we raised our dividend payout, as communicated in January, to 30%.
So, when we look upon the guidance, our original guidance was organic sales growth between 3% and 5%, we came in at 3.5%. Our adjusted EBIT margin was originally guided as 14.5%, raised following the third quarter to 15%, and we came in at 15.4%. And our adjusted EPS growth was guided at 10% and we came in at 10%. So, in that context, the financial guidance that we originally set approximately 12 months ago, we hit all three KPIs.
Let me now go into greater levels of detail. We saw solid organic growth driven by all business groups, and it’s clear that you don’t need to be a rocket scientist to understand that 3.5% is in the lower range between 3% and 5% and not in the upper range. If you look upon the run rate, we had 3.2% in the first half and 3.8% in the second half, but we’re quite solid [ph] because it’s coming in at the low end of the range and not at the upper end of the range.
And its clearly, if we were to pull out one number, that is the number that we are not are not quite happy with. The emerging markets continued with very strong organic sales growth. Our adjusted EBIT margin came in at all-time high, supported by all businesses. As I said before, net debt changed to net cash position. We increased our dividend payout ratio and we took a number of steps that will ensure that we execute our 2000 strategy appropriately. What were the challenges we saw? And I will start at the macro level. Clearly, the pressure from financial FX headwind continued particularly in the second half, where we saw three quarters of our pressure, which will have an impact going into 2014.
We continued to see geo-political and social unrest in some of the countries; mentioning just a couple, Middle East, consistent unrest in Thailand and now also in Ukraine. Despite that, we continue to see very strong growth in the emerging markets. Western Europe continues to be affected by a weak Southern Europe in our business. Our North American and Japanese businesses came in below our own expectations. Our electronic adhesives business and hair salon with negative organic sales growth and we saw high promotional pressure in our HPC business.
《HENKEL AG AND CO. KG CEO Discusses Q4 2013 Results – Earnings Call Transcript》：
HENKEL AG AND CO. KG (OTCPK:HENKY) Q4 2013 Earnings Conference Call February 20, 2014 ET
Operator
Kasper B. Rorsted
Good morning ladies gentlemen, and welcome to our conference call, first I like to focus on the key developments of the full year 2013, as well as the progress we made last year towards our strategic goals for 2016. Then Carsten will provide you with the full year financials in greater detail, and after that I’ll close my presentation with a summary of 2013 and then the outlook for 2014. And finally, we’ll take your questions.
Moving on, I’d like to begin by reminding everyone that the presentation, which contains the usual formal disclaimer to forward-looking statements within the meaning of relevant US legislation, can be accessed via our website at henkel.com/ir. The presentation and discussion are conducted subject to the disclaimer. We will not read the disclaimer but propose we take it as read into the records for the purpose of the conference call.
Now, let me get on. I’ll speak about the key developments for 2013, our strategic priorities 2016 progress in 2013. Carsten will take us through the financials and I’ll summarize and speak about the outlook. So let’s get started. Overall, we had an organic sales growth of 3.5% for the full year an EBIT margin of 15.4% after hitting our target of 14% or 14.1% in 2012, adjusted EPS growth of 10%, net working capital in percentage of sales of 2.3%, a net financial position on our balance sheet of €959 million and we raised our dividend payout, as communicated in January, to 30%.
So, when we look upon the guidance, our original guidance was organic sales growth between 3% and 5%, we came in at 3.5%. Our adjusted EBIT margin was originally guided as 14.5%, raised following the third quarter to 15%, and we came in at 15.4%. And our adjusted EPS growth was guided at 10% and we came in at 10%. So, in that context, the financial guidance that we originally set approximately 12 months ago, we hit all three KPIs.
Let me now go into greater levels of detail. We saw solid organic growth driven by all business groups, and it’s clear that you don’t need to be a rocket scientist to understand that 3.5% is in the lower range between 3% and 5% and not in the upper range. If you look upon the run rate, we had 3.2% in the first half and 3.8% in the second half, but we’re quite solid [ph] because it’s coming in at the low end of the range and not at the upper end of the range.
And its clearly, if we were to pull out one number, that is the number that we are not are not quite happy with. The emerging markets continued with very strong organic sales growth. Our adjusted EBIT margin came in at all-time high, supported by all businesses. As I said before, net debt changed to net cash position. We increased our dividend payout ratio and we took a number of steps that will ensure that we execute our 2000 strategy appropriately. What were the challenges we saw? And I will start at the macro level. Clearly, the pressure from financial FX headwind continued particularly in the second half, where we saw three quarters of our pressure, which will have an impact going into 2014.
We continued to see geo-political and social unrest in some of the countries; mentioning just a couple, Middle East, consistent unrest in Thailand and now also in Ukraine. Despite that, we continue to see very strong growth in the emerging markets. Western Europe continues to be affected by a weak Southern Europe in our business. Our North American and Japanese businesses came in below our own expectations. Our electronic adhesives business and hair salon with negative organic sales growth and we saw high promotional pressure in our HPC business.