Reckitt Benckiser cleans up, according to figures

Harpic-to-Calgonit group Reckitt Benckiser said it was more confident than ever of meeting higher full-year targets today after a jump in quarterly sales.

Strong demand for Reckitt’s array of cleaning products in Western Europe and North America offset weaker trading in emerging markets.

Net revenues in the three months to the end of September climbed 4% to €1,381m while operating profits rose 19% to €217m.

Chief executive Bart Becht said the group’s results had benefited from comparison with a weaker showing in the same period last year.

But he added: “These results, and the continuing success of our innovation programme, give us increasing confidence in our full year targets.”

Slough-based Reckitt revised its goals for 2002 in August, saying it wanted to lift net revenues by around 6% and net income by 18%.

Net income, a similar measure to pre-tax profits, over the first nine months of the year was 24% ahead of last year at €422m.

Reckitt has recently launched several new versions of its brands including Finish 3-in-1 dishwasher tablets and a Vanish Action Ball for fabrics.

Revenues in Western Europe in the third quarter were up 11% with a strong performance in dishwashing, air care and leg wax.

Reckitt’s North American arm recorded a 10% jump in revenues as the launch of floor wipes and Rapid Dry floor cleaner boosted sales.

The group said, however, that market conditions were soft in India and the bleak economic climate had hit trading in Brazil and Argentina.

Margins in the third quarter were 1.3% higher at 15% but most of the rise has been offset by a “significant increase” in marketing spend.

The group was formed three years ago by the merger of Reckitt & Colman with Dutch business Benckiser.