15th Feb 2016 07:14
LONDON (Alliance News) - Reckitt Benckiser Group PLC on Monday said its pretax profit increased in 2015 thanks to improved margins, as currency headwinds held its net revenue broadly flat.
The FTSE 100-listed consumer goods group, which makes products including cleaning brand Cillit Bang, Durex condoms and Finish dishwashing tablets, said pretax profit for the year to the end of December was GBP2.21 billion, up from GBP2.13 billion in 2014.
Net revenue was GBP8.87 billion, up slightly from GBP8.34 billion the year earlier, but cost of sales declined enough to offset a minor uptick in its net operating costs.
Reckitt said the improvement in its margins was down in part to a good sales mix, benefits from low commodity prices, and cost cutting undertaken across the business. Sales growth in constant currencies hit 5.0% in the year and 6.0% on a like-for-like basis, but this was held back on a reported basis by adverse currency translation effects.
Product sales in key division Health & Hygiene grew 8.0% on a constant currency, like-for-like basis in 2015, the company said, while the overall group's geographical growth was solid across the board in constant currencies.
Reckitt said it will pay a final dividend of 88.7 pence per share, up 12% year-on-year and leaving its total dividend for the year flat at 139.00p.
Chief Executive Rakesh Kapoor said Reckitt remained cautious on the outlook for 2016, expecting a tough macroeconomic environment to persist, but was confident it will deliver growth and margin expansion for its key brands.
By Sam Unsted; [email protected]; @SamUAtAlliance
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