Reckitt beats US standstill

13 April 2012

HOUSEHOLD products group Reckitt Benckiser today said new products had put it on track to meet full-year targets, despite zero growth in its US operations.

The company said updated versions of products such as home freshener Airwick and surface care product Dettol had helped lift net revenues and profits in the second quarter in Europe.

Overall, net revenues growth of 7% was above full-year targets and came from almost all categories and regions, the group said in a second quarter trading update.

But net revenues in the company's US business only matched last year's as market growth slowed to zero, resulting in lower quarterly profits from the business, Reckitt said.

Reckitt, which declined to comment on speculation it may buy Durex condoms maker SSL International, has a full-year revenues growth target of between 4% and 6% after achieving a 7% rise to £3.53 billion in 2002.

Reckitt - created from Reckitt & Colman's merger with Dutch group Benckiser in 1999 - employs 1,300 people at sites in Slough, Swindon, Derby and Hull, part of a global workforce of 22,300.

The group is focusing on 15 'power brands' in its five product areas of fabric care, surface care, dishwashing, home care and health and personal products.

Reckitt's pre-tax profits in the year to December 31 rose 9% to £545m, with operating profits at constant exchange rates ahead 12% at £577m.

Its net revenue growth in Western Europe was 'particularly good' as new products resulted in strong profit growth, Becht said. Recovery from the economic woes in Asia has picked up speed, the group added.

Reckitt Benckiser's shares close down 35p at 1121p.

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