Reckitt Benckiser reports record sales figures
Household products group Reckitt Benckiser targeted further strong growth today after rounding off last year with record sales figures.
The Anglo-Dutch group, which is home to brands including Harpic, Dettol and Lemsip, said quarterly revenues exceeded £1bn (€1.45bn) for the first time during the three months to December 31.
The 7% improvement – 11% at constant exchange rates – helped Reckitt to its best quarter of operating profits at £243m (€353m), a gain of 7%. Net income was ahead of market expectations at £201m (€292m).
In 2005 the company is hoping initiatives such as new products in its Vanish Oxi Action fabric care range will lead to a 5% to 6% rise in revenues.
The upbeat figures emerged as Reckitt – formed from the merger of Reckitt & Colman and Benckiser in 1999 – faced up to moves by rival Procter & Gamble to strengthen its own position, following a £30bn (€43.6bn) deal to buy Gillette.
Reckitt chief executive Bart Becht said his company was in good shape after trebling annual net income to £586 million in the five years since the 1999 tie-up.
He said: “Going forward, we will be guided by the vision and strategy that has worked for us so well.”
The group’s strong fourth quarter enabled it to post net revenues of £3.87bn (€5.6bn) for 2004, a gain of 10% at constant exchange rates. It had started the year hoping for a gain of about 5%, but it later lifted market expectations.
Net income for the year of £586m (€851.3m) was 20% higher than 2003 while operating profits rose 12% to £759m (€1.1bn), Reckitt said.
The company said its Vanish-based fabric care division, which makes up a quarter of all sales, lifted revenues by 9% to £1.06bn (€1.5bn) in 2004.
Surface care revenues rose by 11% to £773m (€1.1bn), while the Airwick-based home care business posted sales of £564m (€819m), up 12% on a year earlier.
In Europe, where Reckitt achieves more than half its business, revenues grew by 8% to £2bn (€2.9bn).
