Reckitt identifies 16 'power markets' - UPDATE

8th Feb 2012 07:04

Cillit Bang maker Reckitt Benckiser said it exceeded its full year targets in 2011, as it announced a strategy for 'continued out-performance'.Net revenue in 2011 rose to £9.49bn from £8.45bn the year before and just a tad higher than market expectations of £9.45bn. Profit before tax climbed to £2.38bn from £2.14bn in 2010; the market had pencilled in a figure of £2.40bn. The firm also announced that 2012 sales are set to increase faster than the industry rate of growth. Chief Executive OFficer Rakesh Kapoor said: "In 2012, we are targeting total company net revenue growth, excluding Reckitt Benckiser Pharmaceuticals, of 200 basis points above our market growth rate.""We expect the market to grow at 1 percent to 2 percent," he added. After a strategic review, the company is sticking with its focus on its 'power brands' but is augmenting this with an increased emphasis on 16 'power markets', most of which are emerging markets.Under its new strategy targeting another decade of market outperformance, the firm said it is intensifying the investment behind its brands in the higher growth, higher margin categories of health and hygiene. The group has also created a new organisation structure focused on saving costs and improving speed and consistency. Net debt was reduced from £2m to £1.8m year-on-year. The dividend was increased 8% to 70p per share. The share price rose 2.19% to 4,456p by 09:17.JH/NR