18th Feb 2019 07:34
LONDON (Alliance News) - Reckitt Benckiser Group PLC on Monday said its profit increased in 2018 as a result of receiving a full-year contribution from its infant formula & child nutrition acquisition in the US.
The UK consumer goods major's brands include Nurofen painkiller and Finish dishwasher tablets.
Reckitt posted a pretax profit of GBP2.72 billion for 2018, up 8.8% from GBP2.50 billion in 2017, having acquired US baby formula maker Mead Johnson Nutrition in June 2017.
This made it the first full year of contribution from Mead Johnson, taking infant formula & child nutrition revenue to GBP2.84 billion from GBP1.56 billion. This was in line with company-compiled market consensus.
Group revenue totalled GBP12.60 billion, a 10% rise from GBP11.45 billion the year before and in line with consensus of GBP12.59 billion.
Reckitt declared a final dividend of 100.2 pence per share, up 2.6% from 97.7p the year before. This bought its total dividends paid for the year to 170.7p from 164.3p, an increase of 3.9%.
The company announced a number of new product initiatives for the year, including a relaunch of its Dettol personal wash and soap, as well as a range of new products in its Scholl range such as fungal nail treatment and a new range of insoles.
Like-for-like net revenue growth totalled 3%, equalling growth last year and ahead of the 2.7% market consensus.
"For 2019 we expect momentum to continue, and target [3% to 4% life-for-like] net revenue growth. We expect to maintain the adjusted operating margin as we generate our usual RB cost and efficiency savings, and deploy them into building two even stronger businesses," said Chief Executive Rakesh Kapoor, who plans to step down before the end of 2019.
On the topic of Kapoor's departure, Chair Chris Sinclair said: "We are also under way in the search for a successor to Rakesh, whether internal or external, who will be a fit with the distinctive culture of RB."
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