Consumer products giant Reckitt Benckiser reported decent growth in the first quarter with its Health division performing strongly as a more favourable cold and flu season increased the demand for Strepsils, Mucinex and certain Nurofen products.
Net revenue tolled £2,517m in the first three months of 2013, up 7.0% at constant currency and 7.0% higher on a like-for-like basis. Excluding Reckitt Benckiser Pharmaceuticals (RBP), growth was 6.0%.
The firm said that it is well-placed to achieved its full-year target for revenue growth of 5-6% at constant exchange (excluding RBP).
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Health, which accounts for 27% of revenues, saw sales grow 30% (up 13% on a LFL basis) to £597m as all of its 'powerbrands' registered growth due to strong performances from flu-related brands.
"This was due to higher incidences of cold and flu in the US supported by increased TV and digital BEI initiatives as we leveraged increased cold & flu search volumes."
The Durex brand was also performing well, helped from greater exposure in China and the roll-out of a new product in a number of markets.
The biggest division, Hygiene (46% of revenue), registered 7.0% growth (LFL up 9.0%) driven by strong growth in the Dettol and Lysol brands across both the emerging markets, and Europe and North America.
The Home division (22% of revenue) reported sales of £488m, unchanged on last year on a reported basis (LFL up 2.0%) was a difficult consumer environment weighed on the performance.
RBP saw strong growth of 19%, helped by underlying growth in prescriptions in the US. "As signalled with our 2012 full year numbers, the Q1 2013 reported growth was increased by the sell-in to drug wholesalers of new 4mg and 12mg film dosages, and the tail of the high Medicaid accruals in Q1 2012."
-
How taking a two-year career break could leave a £26k hole in your pensionCareer breaks are increasingly common but it is important to take steps to protect your pension, as gaps compound over time
-
Cash in on your attic: Thousands could be sitting dormant in your storageSelling your valuables at auction could be far more lucrative than you think. We take a look at how auctions work, and some tips to help you maximise your profits
