20th Apr 2018 09:12
LONDON (Alliance News) - Reckitt Benckiser Group PLC on Friday said that it expects to achieve targeted annual growth as revenue rose in the first quarter of 2018.
The consumer goods giant - which owns brands including Dettol, Airwick and Vanish - reported total revenue of GBP3.1 billion for three months to the end of March, up 23% at actual exhange rates from GBP2.6 billion for the same period the year before.
Revenue in Reckitt's Health unit grew 49% year-on-year to GBP1.9 billion, while revenue in the Hygiene Home division fell 3.0% to GBP1.2 billion.
On a like-for-like basis, which adjusts for acquisitions, disposals and at constant currency, revenue grew 2.0%. This included 4.0% like-for-like growth in Hygiene Home and 1.0% rise in Health.
The company said that its Health division saw a a good growth in Health Relief brand, but it was offset by weakness in its Health Wellness and Health Hygiene brands.
Reckitt's Hygiene Home business made a strong start to the year, it said, aided by some seasonality on cleaning and disinfecting products Lyson. However, the strong volume growth was hit by negative pricing.
Looking ahead, the company said it is on track to achieve its full-year revenue growth target in a range of 13% and 14% at constant rates.
"A solid start overall in the first quarter, operating under our new organisational structure," said Chief Executive Rakesh Kapoor. "Our priority remains organic growth under our new focussed organisation structure."
Shares in Reckitt were trading 6.6% lower on Friday at 5,405.00 pence each.
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