Reckitt Benckiser brings forward targets after 2012 beat

Consumer products giant Reckitt Benckiser managed to narrowly beat consensus expectations with its 2012 results, as growth was driven by a strong performance in the emerging markets and its Health and Hygiene divisions.

The company said it is now bringing forward two medium-term key performance indicator (KPI) targets to 2015, a year earlier than planned.

Net revenue in the 12 months to December 31st totalled £9,567m, up 1.0% from £9,485m in 2011. The consensus estimate was for a flat reading year-on-year.

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Like-for-like (LFL) revenue rose by 5.0% (consensus: +4.3%) which the firm said was well ahead of its market growth, helped by the LAPAC (Latin America, Pacific and Asian countries) and RUMEA (Russia, the Middle East and Africa) regions and a improvement result from (ENA) Europe and North America in spite of "challenging market conditions".

Profit before tax in 2012 totalled £2,420m, up from £2,376m previously, while basic earnings per share rose from 239.8p to 252.5p, ahead of expectations.

Reckitt also said that growth was helped by a strong performance in its Health and Hygiene divisions - responsible for brands such as Durex, Gaviscon, Dettol and Harpic - which accounted for 69% of core net revenue in the fourth quarter.

The company raised its final dividend per share (DPS) by 11% to 78p, bringing the total 2012 dividend to 134p, up 7.0% on 2011.

Net debt rose from £1,795m to £2,426m over the period, reflecting the payment of dividend and acquisitions.

Looking aheadThe firm's medium-term target for Health and Hygiene to be 72% of core net revenues has now been brought forward to 2015, from 2016 previously.

The contribution of LAPAC and RUMEA revenues to group revenues is expected to rise to 50% by 2015 also, also a year earlier than planned.

As for 2013, the firm is expecting net revenue growth of 5-6% at constant currency rates, up from 4.0% growth in 2012.

"While much has yet to be done and markets remain challenging, we approach 2013 with the confidence that we have the right strategic focus, the right organisation and culture, and with the right innovation platforms," said Chief Executive Rakesh Kapoor.