Reckitt looks for growth in new regions
BRITISH consumer goods group Reckitt Benckiser is to launch a major sales push into fast-growing emerging markets, with a focus on health and hygiene brands like Nurofen and Dettol, to offset sluggish European and North American markets.
New chief executive Rakesh Kapoor, who took over last September after Bart Becht’s shock decision to retire, said yesterday the group would raise marketing spend as it aims to get half of its “core” sales from emerging markets by 2016.
As part of this new strategy, the group is reorganising its reporting to include two clusters of emerging markets, while it will merge its European and North American regions which will save costs and lead to unspecified job losses.
“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 said, after the company beat forecasts with an eight per cent rise in fourth-quarter earnings.
Reckitt, which also makes Cillit Bang cleaners and Air Wick air fresheners, reported fourth-quarter earnings rising to 74.2p a share compared with a company-compiled forecast of 71.3p.
For 2011, Reckitt reported a 13 per cent rise in net revenue and an 11 per cent rise in net income, just above its target for 12 and 10 per cent rises.