Reckitt ups full-year guidance after decent third quarter

22nd Oct 2013 07:13

- Revenue (excluding RBP) to grow six per cent- Health, Hygiene drives third-quarter growth- Firm launches strategic review into RBPHousehold products firm Reckitt Benckiser has raised its full-year revenue guidance slightly after a strong third quarter and a decent performance by recent acquisitions.The maker of Cillit Bang said it now expects to grow net revenue excluding Reckitt Benckiser Pharmaceuticals (RBP) by "at least 6%" in 2013, compared with the previous forecast of the "upper end of the +5-6% range".Chief Executive Rakesh Kapoor said: "Reckitt Benckiser's focus on Health and Hygiene and emerging markets, along with our move to drive growth in Europe and North America (ENA) through increased investment behind innovations and a streamlined organisation structure is delivering good results."Net revenues totalled £2.55bn in the third quarter, up 5% on the year before. Growth would have been 7% if RBP was excluded.The company continues to see strong growth from its Health division - which makes Strepsils and Nurofen tablets - where revenues rose 27% to £707m during the period, helped by a "strong and long 'flu season".Hygiene - which includes products such as Dettol and Harpic - grew 5% to £948m. However, the Home division - Airwick and Vanish - fell 1% to £500m partly due to increased competition and weak conditions in Europe.Meanwhile, as RBP continues to struggle - LFL revenue fell by 16% during the third quarter - the company said it is launching a strategic review into the unit and will "consider all options for maximising value for our shareholders".BC