Shares in Reckitt Benckiser climbed higher today after the Nurofen and Strepsil owner posted better-than-expected third-quarter sales and boosted its full-year guidance.
The FTSE 100 company, which owns everything from Finish dishwasher tablets to Durex condoms, said like-for-like sales rose by seven per cent in the third quarter, beating analyst expectations of around 5.2 per cent growth.
As a result, the group has raised its full-year revenue target to five per cent from four to five per cent previously, driving shares up 2.54 per cent to 6,300p.
Reckitt’s health unit, which also includes Mucinex cold remedies, posted the stronger growth, with like-for-like sales up by 14 per cent in the period. Hygiene and home rose by five per cent and four per cent respectively.
Like-for-like sales in developing markets increased by 10 per cent, driven by India and China, where rising incomes and urbanisation is helping to increase demand for its products.
The company said trading conditions in Brazil remained challenging, however the quarter benefited from a strong pest season.
In North America, underlying sales rose by five per cent, while in European markets sales were up by seven per cent, thanks to new product launches from Scholl footcare, and Airwick air freshener brands.
“Our strategy for growth and outperformance, focused on power markets and powerbrands continues to deliver,” Reckitt chief executive Rakesh Kapoor, said.
“Markets remain challenging, but with six per cent like-for-like growth on a year to date basis behind us, we are able to raise our full year like-for-like revenue target to five per cent, and therefore remain poised for another year of growth and margin expansion,” he added.