Reckitt Benckiser profits up as firm plots expansion
British consumer goods group Reckitt Benckiser announced fourth quarter profits were up eight per cent at £546m as it launched a major push into emerging markets to offset sluggish European and North American sales.
The firm – responsible for brands including Durex, Finish and Vanish – saw revenues increase to to £2.4bn for the quarter and £9.5bn for the whole of 2011.
New Chief Executive Rakesh Kapoor said on Wednesday the group would raise marketing as it aims to get half of its “core” sales from emerging markets by 2016.
“We should be investing more in these markets as this is where there is the opportunity for growth. We are shaping our business for tomorrow,” he told a conference call after beating forecasts.
He added the group would intensify its focus on health and hygiene brands as these gave the highest profit margins, growth and consumer loyalty, and are expected to be 72 per cent of its core business by 2016 from 67 per cent currently.
The firm plans to discontinue its private label business – products retailers sell under their own brand – with annual sales of around £200m.
Reckitt shares rose 3.1 per cent in early trading.