Reckitt Benckiser beats market expectations with bumper Q4 sales

Reckitt Benckiser, the maker of Nurofen painkillers and Dettol handwash, announced that sales this year will rise as much as 6%, boosted by acquisitions, after the company reported bumper fourth-quarter sales. The consumer goods company announced a rise in full-year net income attributable to owners of the parent to £1.83 billion, or 249.5 pence per share, from the prior year’s £1.75 billion, or 237.1 pence per share in 2011. Reckitt Benckiser posted net revenue for the year totaled £9.57 billion, up from the previous year’s £9.49 billion, an increase of 5% on a like-for-like basis.

The company attributed growth to its strong performance in its emerging markets, with an improving result from ENA despite challenging market conditions. Reckitt Benckiser reported that health and hygiene sectors led performance with strong results from Health Powerbrands Durex and Gaviscon, and from Hygiene Powerbrands Dettol, Lysol, Finish and Harpic.

Revenues for 2013 will increase between 5% and 6% at constant rates of exchange, excluding the pharmaceuticals unit and withdrawal from private-label products, the Slough, England- based company, said in a statement. Reckitt Benckiser chief executive Rakesh Kapoor has put acquisitions at the forefront to move into healthcare, while at the same time seeking to boost emerging-market sales to combat weakening economies across Europe. Yesterday, Reckitt Benckiser entered into a $482 million (£308 million) licensing pact with Bristol-Myers Squibb Co. for Latin American over-the-counter remedies, and in December paid $1.4 billion (£890 million) for supplement maker Schiff Nutrition International Inc.

Regarding Reckitt Benckiser’s 2013 outlook, Rakesh Kapoor, said, “For 2013, we are targeting net revenue growth of +5-6% including acquisitions and disposals announced to date. Given the early achievement of cost savings in 2012, we expect to maintain operating margins in 2013. These targets exclude RBP.”