Reckitt Benckiser Q2 results continue to show significant gains

By Simon Pitman

- Last updated on GMT

Related tags: Personal care, Revenue, Reckitt benckiser

Reckitt Benckiser has announced Q2 results that continue to underline the strong growth the UK-based personal care and household products company has enjoyed throughout the recession.

A week after the company announced the acquisition of SSL International – owner of the Durex and Scholl brands – the company revealed that like-for-like sales were up 6 per cent, while net income rose by 20 per cent.

Sales for the three month period ending on June 30 rose to £2.06bn (€2.46bn), which on a reported basis represented an increase of 10 per cent, while net income rose to £380m.

For the first half of the year sales were up 7 per cent on a reported basis and 6 per cent on a like-for-like basis to reach €4.06bn, while net income for the period rose to £728m, an increase of 18 per cent.

Health and personal care continue to drive sales

The company did point out that the group results were negatively impacted by about 1 per cent due to the sales in its pharmaceutical division, although sales of personal care and household products have continued to perform well.

On a geographical basis there was also some disparity in the results for the six month period, with reported sales for the Europe region down by 2 per cent, and sales in developing markets were up 26 per cent and in North America they increased by 6 per cent.

The European market accounts for 43 per cent of the total sales for the six month period, while the company said that sales for its health and personal care division in the region were flat.

North America and developing markets boost group sales

For the six month period, growth was boosted by a strong performance in health and personal care in both the North American and developing markets.

“This performance benefited from excellent growth in Developing Markets, and the success of new Powerbrand product,” said ​company CEO Bart Brecht.

“We are re-iterating our full year targets for the Group ex-RBP assuming no change in current market conditions, being net revenue growth of +5 per cent and operating profit growth of +10 per cent- both at constant exchange,” ​he said.

Acquisition of SSL International

Last week the company announced that it was buying up UK-based SSL International for £2.54bn, in a deal that will add the Durex and Scholl power brands, increasing the total number of power brands in its portfolio to 19.

Durex is the world’s number one condom brand, but the deal will also see Reckitt Benckiser acquire a number of associated health and personal care products, which are focused on lubricants.

Scholl is the market leader in footcare in most of the markets it is present in worldwide, including Europe. As well as specialising in sandals, the brand also includes a range of footcare products, including treatments for various foot skin conditions such as fungus and dry feet.

Related topics: Business & Financial

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