Pharma and new markets lift Reckitt Benckiser

2nd Nov 2010 07:34

Dettol and Lysol maker Reckitt Benckiser lifted third quarter profits by a fifth and has raised it full year targets thanks to strong strong sales growth in developing markets and a full contribution from its prescription pharmaceuticals businesses. Revenues overall rose by 11% to £2.11bn in the three months to September, with operating profits up by 21% to £564m. Net income rose by 19% to £426m. On a constant currency basis sales rose by 6% and profits by 16%. For the year so far sales are up 9% at £6.2bn and profits by 19% to £1.53bn.The group, which is in the process of completing the acquisition of condoms to footcare group SSL, added that stripping out the contribution from the pharmaceuticals arm, sales rose by 5% and underlying operating profits by 10%.The organic business got a lift from the recently introduced 'no-touch' handwash dispensers, though sales overall struggled in Europe with like-for-like revenues here down 1%. Developing markets soared by 19%. Pharmaceutical sales rose by 27%.As result of the pharma contribution, Reckitt has increased its full year targets, though the forecast for the original business has not changed."For the full year, the Group is now targeting net revenue growth of +6%and net income growth of +16% for the total business (both at constantexchange and excluding SSL), with exchange possibly adding around +2% to these numbers," the statement said.