Consumer goods giant Reckitt Benckiser Group Plc (RB.L,RBGPF.PK) Monday said revenue in the first quarter increased from the prior year, amid strong growth in Emerging Market Areas and higher demand for Mucinex and Strepsils due to higher incidence of flu in the U.S.
In an interim management statement, the firm said net revenue climbed 7 percent to 2.517 billion pounds. On a constant currency basis as well as like-for-like or LFL sales basis, growth was 7 percent.
Excluding the contribution from RB Pharmaceuticals or RBP, revenue growth was 6 percent.
Rakesh Kapoor, CEO, said, "We are pleased with a strong start to the year, with our Health and Hygiene brands leading RB's growth across all geographies. Growth was driven from a combination of innovations, increased Brand Equity Investments and better in market executions.''
Segment-wise, ENA, which represents 56 percent of core net revenue, generated 1.260 billion pounds in the quarter, up 5 percent from last year. LFL growth was 3 percent. Reckitt said the Scholl footwear business is now included within ENA.
According to the company, growth in this segment was driven by a strong performance in the U.S. led by Health brands - in particular Mucinex Fast Max and Sinus-Max innovations.
Net revenue from LAPAC, which represents 28 percent of core net revenue, climbed 8 percent to 626 million pounds with LFL growth of 11 percent.
According to the company, growth in this business was driven by a combination of powerbrand rollouts, innovation, distribution and penetration expansion, especially in the growth markets of India, Brazil and China.
In Health, Durex and Gaviscon performed well, while Vanish and Air Wick drove the growth in Home. Dettol drove the strong performance in Hygiene.
In RUMEA, representing 16 percent of core net revenue, net revenue increased 5 percent to 354 million pounds, with LFL growth of 7 percent, amid strong performances in Durex and Strepsils.
Category-wise, Health revenues climbed 30 percent to 597 million pounds with a 13 percent LFL growth, with particularly strong performances from the flu related brands of Mucinex, Strepsils and some products of Nurofen.
Hygiene revenues were up 6 percent at 1.025 billion pounds on a 9 percent LFL improvement, driven mainly by strong growth in Dettol / Lysol across both emerging markets and ENA. RBP sales climbed 20 percent.
The firm expects continued challenging market conditions, but is confident that it can achieve its full year targets of 5 to 6 percent total net revenue growth, excluding RBP, while maintaining operating margins.
RB.L closed up 1.1 percent on Friday at 4,709.00 pence.
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