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Reckitt Benckiser Sales Fall But Ups Constant Currency Growth Target

21st Oct 2015 07:11

LONDON (Alliance News) - Reckitt Benckiser Group PLC on Wednesday reported a fall in group net revenue in the third quarter of 2015, although it grew at constant exchange rates, leading the consumer goods company to raise its full-year revenue forecast on a constant currency basis.

Shares in Reckitt opened up 1.7% at 6,250.00 pence Wednesday morning, the fourth best performer in the FTSE 100.

The company, which makes products including cleaning spray Cillit Bang and Nurofen painkillers, said group net revenue fell 1% to GBP2.19 billion in the third quarter, but rose 7% on a like-for-like basis at constant currencies.

In the first nine months of the year, group net revenue remained flat at GBP6.55 billion, but grew 6% on a like-for-like basis at constant currencies. It said like-for-like growth was driven by consumer health and hygiene, which saw an 8% rise in the third quarter and 7% rise in the nine months, both at constant currencies.

Reckitt raised its full-year like-for-like constant currency revenue growth target to 5%.

"Our strategy for growth and outperformance, focused on Powermarkets and Powerbrands continues to deliver. In the third quarter we achieved continued broad-based growth throughout our European and North American Powermarkets, and double-digit growth in Developing Markets. Health and Hygiene brands had an excellent quarter with 8% growth, driven by innovations and continued penetration building programmes," Chief Executive Rakesh Kapoor said in a statement.

"Markets remain challenging, but with 6% like-for-like growth on a year to date basis behind us, we are able to raise our full year like-for-like revenue target to 5%, and therefore remain poised for another year of growth and margin expansion," he added.

By Karolina Kaminska; [email protected] @KarolinaAllNews

Copyright 2015 Alliance News Limited. All Rights Reserved.


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