Reckitt Benckiser Sales, Profit Grows, Targets Unchanged

26th Jul 2010 07:19

By Michael Carolan Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Reckitt Benckiser PLC (RB.LN) posted further growth in both sales and profit Monday but once again failed to issue its customary upgrade to full-year guidance. The household and personal care products group said its operating profit in the three months to June 30 was GBP503 million, up from GBP414 million a year ago and slightly ahead of market expectations. Sales grew 6% to GBP2.06 billion. Stripping out acquisitions, and the contribution of the group's pharmaceutical division, core organic sales were up 5%, in line with its full-year target. The company now treats its pharma division as non-core following the expiry of the U.S. orphan drug status for its heroin dependency treatment Suboxone in October last year. Suboxone's sales are expected to plummet once a generic competitor is eventually launched. Stripping out the pharma division, operating profit was 10% higher than last year. It reiterated its targets for the core business of 5% sales growth and 10% operating profit growth. The targets assume no change in current market conditions. "For the total group, we are confident of delivering another year of good growth in 2010, notwithstanding potential generic competition to Suboxone in the U.S." In recent years, the company has regularly beaten its sales and profit targets and raised its full-year guidance in quarterly reports. Operating margin grew 0.9%, ahead of expectations for a 0.5% rise. Last week, the consumer goods group launched a GBP2.54 billion recommended bid for Durex condom maker SSL International PLC (SSL.LN). The company's share price has risen by more than 15% in the last year as it continues to shrug off the effects of the consumer downturn. They closed Friday at 3336 pence. -By Michael Carolan, Dow Jones Newswires; 44-20-7842-9278; [email protected] (END) Dow Jones Newswires July 26, 2010 02:19 ET (06:19 GMT)