Reckitt Benckiser on track to meet full-year guidance

16th Apr 2014 07:47

- First-quarter revenue in line with analysts' consensus- Mulling separate stock listing for pharmaceutical unit - On track to meet full-year guidanceHousehold products giant Reckitt Benckiser posted first-quarter revenue growth in line with market expectations and said it was considering a separate stock listing for its pharmaceutical business. The Slough-based firm said non-pharmaceutical sales rose 4%, excluding acquisitions, disposals and currency movements. Revenue at its pharmaceutical unit tumbled 11% in the quarter as it struggled against rival versions of its drugs. An initial public offering of the pharmaceutical unit is emerging as a possible option, the company said. Otherwise sales at its health division rose an impressive 11% as "strong innovation and sell-in offset tough comparatives." It said full-year revenue is expected to increase 4-5% at constant currency rates with flat to moderate operating margin expansion. Total sales for the first quarter increased 3% to £2.37bn. Sales in Europe and North America climbed 2%, buoyed by new products and as it ramped up distribution of it main health brands.Chief Executive Rakesh Kapoor said: "We have made a robust start to the year and net revenue growth is on track for our full year targets, which we reiterate. "I'm particularly pleased with how our focus on consumer health is driving growth and outperformance, supported by larger innovation roll-outs."Shares of the group rose 1.34% to 4,917.00p in London.CJ