LONDON (ShareCast) - Household goods group Reckitt Benckiser (LSE: RB.L - news) shrugged off the recession during the third quarter, reporting
a big jump in profits and raising targets for the full year.
The firm, which makes branded products such as Dettol, Vanish, Finish and Steradent, grew net revenue by 7% at constant exchange rates, or 15% at actual rates, to £1.9bn in the quarter ended 30 September. Pre-tax profit jumped 26% to £469m from £373m a year ago.
Reckitt raised its year target for net revenue growth to +6-7% at constant exchange versus +5-6% previously, due to continued strong momentum in the base business, combined with upside on Reckitt Benckiser Pharmaceuticals compared to ingoing expectations.
Adjusted net income growth is now expected to be +12-13% at constant exchange rates, up from +10-11% before, or +22-23% at actual exchange. It grew by 12% and 25% respectively in Q3 to £357m.
"Reckitt Benckiser continued to see good momentum," said chief executive Bart Becht. "This result was supported by our 17 Powerbrands, behind significant investment in media and marketing and successful new product initiatives."
A strong performance from Nurofen, Strepsils and Gaviscon pushed net revenue at the Health & Personal Care business up by 16% to £533m, while heroin substitute drug Suboxone aided a 41% surge in sales at the pharmaceuticals unit to £140m.
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