London - A “favourable” flu season and the launch of its thinnest condom yet have helped Reckitt Benckiser, the health-care and cleaning products group, to increase its profits faster than expected.
Revenues climbed by 5 percent in the second quarter to £2.1bn, compared with an anticipated 4 percent rise. Adjusted net income increased by 7 percent to £720m, as first-half margins grew to 21.9 per cent.
The maker of Dettol, Nurofen and Durex condoms said it was raising its targets for the full year in the light of the strong performance. The global company, which has been focusing on higher margin health care, said it was now looking for net revenue growth of 4 to 5 percent, compared to the previous target of 4 percent.
Rakesh Kapoor, the chief executive, singled out Durex Real Feel as a star product. He added that the results confirmed the decision to focus on consumer health and hygiene, and that the company would continue to invest in innovations in this area, targeted at both the developing and the developed world.
Kapoor said the group was on track to cut costs by £150m a year, the upper end of its target. European and North American markets were broadly stable, he added, but there had been an improvement in consumer appetite in India. Brazil is a particularly tough market at present, according to Kapoor. China has also been challenging, but Reckitt said it was able to outperform competitors because of its greater investment in digital channels.
In the second half of the year, Reckitt will launch a range of products that will help those facing winter in the northern hemisphere, including Airborne, a vitamin C spray that helps fight infection from colds and flu. It will also launch an electronic nail-smoothing system, by Scholl, to tap into the current fashion for manicures.
The Independent