12th Feb 2014 08:01
LONDON (Alliance News) - Household goods producer Reckitt Benckiser Wednesday reported lower 2013 profits as it booked higher charges for legal provisions and restructuring and acquisition costs, but revenues and adjusted operating profits increased, driven by growth for its health and hygiene products.
However, the maker of products including Cillit Bank cleaning fluids, Dettol disinfectants, Durex condoms and Nurofen and Strepsils cold and flu remedies echoed rivals in warning that market conditions at the start of 2014 are tougher than they were a year ago, particularly in emerging markets. It said it thinks it can offset this challenge.
"Market conditions are more challenging now than at the beginning of last year, particularly in some emerging markets. However, we have confidence that our pipeline of innovations, Powerbrand roll-outs and brand investments will deliver another year of high quality growth," Chief Executive Rakesh Kapoor said in a statement.
Reckitt reported a net profit of GBP1.74 billion for the whole of 2013, down from GBP1.82 billion in 2012, as exceptional charges rose to GBP271 million, from GBP135 million. Adjusted operating profit, which excludes those charges and therefore gives a better indication of operating peformance, rose to GBP2.62 billion, from GBP2.58 billion as revenues rose to GBP10.14 billion, from GBP9.57 billion.
"Our strategy for growth and outperformance through driving Health and Hygiene Powerbrands together with our focus on 16 Powermarkets is delivering results. We are pleased with the continued strength of our Europe and North America performance. And while emerging markets continue to slow, we delivered very strong results in India and China," Kapoor said.
By Steve McGrath; [email protected]; @SteveMcGrath1
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