Reckitt Benckiser reports ‘strong start’ to 2008

Reckitt Benckiser has published its financial results for the first quarter of the year, with the firm reporting a robust start to the fiscal period.

Net revenues increased 20 per cent compared to the first quarter of 2007, up to 1,510 million pounds, while operating profit on a reported basis increased by 13 per cent to 275 million pounds.

The gross margins at the company increased by 80bps to 57.7 per cent, while the firm reported a net income of 205 million pounds, up 15 per cent on the comparable period in 2007.

Net debt was recorded at 889 million pounds, 764 million pounds above the level reported in December 2007, with this debt increase primarily a result of the company’s acquisition of Adams Respiratory Therapeutics.

Bart Becht, chief executive officer of Reckitt Benckiser, said: “Based on the strong start to 2008 we are increasing our like-for-like full year target for net revenue growth to seven to eight per cent (previously six to seven per cent) and for net income growth to 11 per cent (previously ten per cent), both at constant exchange.”

He added that the company is adding the Adams business to its targets, with consolidated full year targets for net revenue growth of 11 to 12 per cent from a base of 5,220 million pounds.

In February 2008, Reckitt Beckiser reported strong growth for the 2007 fiscal year, with a seven per cent rise in net revenues and 39 per cent increase in net income.