Reckitt Benckiser reports big first half gains on acquisitions
The UK-based company reported that total net revenue grew by 15 per cent to reach £4.62bn (€5.27bn), while adjusted net income grew 12 per cent to reach £802m.
The company’s personal care and health care division, which currently accounts for the largest slice of total income, grew sales by an impressive 45 per cent to reach £1.54bn.
For the personal care operations the result was driven by the continued expansion of the Dettol brand and the roll-out of the No Touch Hand Soap System in leading markets throughout Europe delivered ‘encouraging’ results.
European sales driven by Dettol bar soaps
Sales in the European market, the company’s largest geographic market, grew by 17 per cent to £2.04bn, a result that was driven by significant media spend and promotion, the company said.
In North America health and personal care was attributed as being one of the main driving force behind a 5 per cent gain in revenues to £1.09bn, while in the developing markets a 23 per cent rise in revenues to £1.13bn was partly attributed to Dettol bar soaps.
The increased revenue was also driven by acquisition of SSL International in the second half of last year. Reckitt paid £2.5bn to acquire the company, which held the health and personal care powerbrands Durex and Scholl.
SSL brings synergies and revenue growth
At the time of the acquisition, the company estimated that the deal would increase the company’s annual revenues from health and personal care to approximately 36 per cent of the group’s revenues.
Looking ahead to the rest of the financial year, the company says it is well positioned to achieve its full year targets for 2011, which is 4 per cent like-for-like sales growth, excluding revenues from the SSL Group.
It also wanted to grow SSL Group revenues by 4 per cent during the financial year, as well as aiming to add 50 per cent of the targeted £100m cost synergies.
Combining the results of both companies, Reckitt Benckiser reaffirmed its target to achieve total revenue growth of 12 per cent on last year’s figure of £8.45bn, on top of 10 per cent net income growth.
