Reckitt Benckiser 4Q Sales +8%, Sets Growth Targets For 2009
11 Februar 2009 - 8:56AM
Dow Jones News
Reckitt Benckiser PLC's (RB.LN) posted another strong set of
results for its fourth quarter Wednesday and unlike rival Unilever
PLC (UN UL), forecast another year of robust growth in 2009.
The household cleaning and personal care products maker said net
profit in the three months to Dec. 31 was GBP393 million, up from
GBP289 million a year earlier. Sales were GBP1.83 billion, up 33%.
Stripping out the effect of acquisitions and currency movements,
fourth-quarter sales were up 8%, lower than the 10% rise seen in
the previous quarter but ahead of expectations.
Underlying operating margin increased 40 basis points in the
latest quarter to 28.8%
The maker of a products such as Lysol, Clearasil, Cillit Bang
and Senokot also set growth targets for 2009. Stripping out
currency fluctuations, it is targeting sales growth of 4% and a
rise in post-tax profit before exceptional items of between 8% and
10%. The comparable figures for 2008 are growth of 13% and 12%,
respectively.
While the company is forecasting a slowdown in its growth rates,
it is at least providing forecasts. Anglo-Dutch rival Unilever PLC
(UN UL) last week scrapped its sales and margin targets and refused
to provide any outlook for 2009 in the face of the economic
uncertainty.
Reckitt has a habit in recent years of setting sales growth
targets at the start of the year only to beat them once the year is
complete. Last year's underlying sales growth of 10% compares with
an original target of 6%-to-7%.
"Reckitt Benckiser had an excellent year in 2008 despite
challenging conditions," said Chief Executive Bart Becht in a
statement. He said all regions and all major brands contributed to
the growth, "supported by significant media investment and
successful innovations."
Reckitt's steady performance over 2008 has meant that, unlike
rival consumer goods groups, its share price is actually slightly
higher than a year ago, despite the economic downturn. The shares
closed Tuesday at 2,622 pence, down 3% on the day but 0.6% above
the year-ago level.
Company Web site: www.reckittbenckiser.com
-By Michael Carolan, Dow Jones Newswires; 44-20-7842-9278;
michael.carolan@dowjones.com