27th Jul 2015 06:13
LONDON (Alliance News) - Reckitt Benckiser Group PLC on Monday said it has upgraded its like-for-like revenue growth target for the full year after its pretax profit rose in the first half thanks to a solid performance across the business.
The FTSE 100-listed consumer goods company, which makes products including cleaning spray Cillit Bang, Nurofen painkillers and Durex condoms, said its pretax profit for the six months to the end of June was GBP921 million, up from GBP838 million a year earlier.
Net revenue for the company hit GBP4.36 billion in the half, up from GBP4.332 billion last year, driven by good results across its geographical operations, aided by a favourable flu season for the company. Reckitt is now focused solely on consumer health and hygiene products, having spun off its pharmaceuticals business into FTSE 250-listed Indivior PLC last year. Like-for-like revenue growth in the half, at constant currencies, was 5%.
The group said it will pay an interim dividend of 50.3 pence per share, in line with its 50% payout ratio policy. The figure is lower than last year, when it paid 60 pence per share, as this included the Indivior business.
"I am pleased with our first half results, they once again confirm that our strategic focus on consumer health and hygiene is delivering sustainable growth and outperformance. We continue to invest behind our innovations such as Scholl Express Pedi and Durex Real Feel in both developed and developing markets leading to broad-based growth across both areas," said Rakesh Kapoor, Reckitt's chief executive.
Kapoor added that, following its robust first-half performance, Reckitt now expects to exceed the targets it set at the start of the year and is now targeting like-for-like revenue growth of 4-5% for the full year.
By Sam Unsted; [email protected]; @SamUAtAlliance
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