Reckitt powers through the downturn

29th Jul 2009 07:23

Swine flu fears sparked a surge in demand for disinfectant Dettol and helped Reckitt Benckiser power through the first half of 2009.The detergent group posted profits and dividends up by a third and raised its full year estimates for both sales and earnings growth.Pre-tax profits for the quarter to June jumped to £415m from £315m making a total for the half-year of £816m, up by 40%. Sales rose by nearly a quarter in the latest three months to £1.87bn and by 23% over the half to £3.78bn. "Reckitt Benckiser had a very good first half despite challenging market conditions, with net revenue growth of +8% at constant exchange. All regions and our 17 Powerbrands contributed to this growth, supported by continued investment and successful product initiatives," chief executive Bart Becht said. Nurofen, Lemsip and Dettol had all seen sales tick up since the outbreak of the new flu strain, Becht added. "There is a benefit, albeit modest, but particularly in the UK" he said.As a result of the strong interim performance, Reckitt has now upped its target for full year net revenue growth to +5-6% (previously +4%, base £6,563m) and net income growth of +10-11% (previously +8-10%, base £1,143m), both at constant exchange. The interim dividend goes up by 34% to 43p per share.