Reckitt reiterates target after forecast-beating quarter

Like-for-like (LFL) sales growth, excluding the pharmaceuticals division, was slightly ahead of expectations at household goods giant Reckitt Benckiser in the first quarter of 2012.

Net revenue rose 3%, or 4% at constant exchange rates, to £2,357m, some way ahead of market expectations of £2,180m. LFL sales, excluding Reckitt Benckiser Pharmaceuticals (RBP), was 4%, versus expectations of a year-on-year increase of 3.8%.

"High quality, volume led LFL growth of 4% was driven by continued excellent performance in Emerging Market Areas and the success of innovations like Veet Easy Wax Roll-On and the Lysol No-Touch Kitchen System," said Rakesh Kapoor, Chief Executive Officer of Reckitt Beckiser.

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RB Pharmaceuticals saw revenue increase by 7% (+6% at constant exchange rates) to £167m. Good market growth in the US was not fully reflected in the net revenue growth, Reckitt said, due to dilution from continued strong film penetration and Medicaid rebates which are now being accrued at the new higher levels.

"RBP continues to make very good progress with the patient preferred Suboxone

sublingual film now at 53% market volume share, up from 48% at the end of 2011," Kapoor said.

The Cillit Bang maker reiterated its full year target of like-for-like net revenue growth, excluding RBP, of two percentage points above the market growth rate of 1-2%. "We also expect to maintain full year operating margins [excluding RBP]," the group said.

JH