Household cleaning products company Reckitt Benckiser Group Plc (RB.L) on Monday posted higher profit for the second quarter, buoyed by the "excellent growth in Developing Markets " and the launch of Airwick Aqua Mist. In addition, the company reiterated its full-year targets.
The UK-based company's second-quarter net income was GBP 380 million or 51.8 pence per share, compared to GBP 310 million or 43.0 pence per share in the prior-year quarter.
Profit before tax for the latest quarter increased 22% to GBP 507 million from GBP 415 million reported in the comparable quarter of 2009.
Quarterly net revenue totaled GBP 2.06 billion, up 10% from the previous year's revenue of GBP 1.87 billion. On a constant exchange basis, revenue rose 6%, and excluding RBP, net revenue increased 5%, consistent with the growth rate achieved in the preceding first quarter.
Reckitt, which recently agreed to acquire SSL International for about GBP 2.54 billion, reported that the gross margin improved by 90bp to 60.5%, primarily driven by the input cost savings, a positive transaction impact from foreign exchange and benefits from cost optimisation programmes.
Total marketing investment was higher and pure media investment grew 12% to a level of 11.6% of net revenue. There was also significant growth in other consumer marketing, as savings from more favourable media rates were re-invested in other activities.
Revenue from Europe, which represents 43% of the company's net revenue, slipped 1% to GBP 846 million, while revenue from North America & Australia, which represents 26% of net revenue, improved 4% to GBP 545 million.
Developing Markets' revenue rose by 18% to GBP 491 million and represented 23% of net revenue. In the Pharmaceuticals segment, net revenue grew 21% to GBP 179 million and contributed 8% of net revenue.
During the most recent quarter, Health & Personal Care revenues increased 10% to GBP 546 million, while Fabric Care revenues dropped 3% to GBP 398 million. Second-quarter revenue from the Surface Care unit were up 3%, totaling GBP 343 million. Home Care revenue improved 4% to GBP 268 million, and Dishwashing revenue grew 5% to GBP 1.80 billion.
Pharmaceuticals revenues amounted to GBP 179 million, up 21% from the prior-year quarter, and food division fetched quarterly revenue of GBP 80 million, an increase of 9% year over year.
For the half-year period ended June 30, 2010, the company reported net income of GBP 728 million or 99.2 pence per share, compared to GBP 613 million or 85.1 pence per share a year ago.
Net revenue advanced 7% to GBP 4.06 billion from GBP 3.78 billion reported in the same period of last year.
Bart Becht, Chief Executive Officer, said, "Reckitt Benckiser's first half results (excluding RBP) were in line with our full year targets, with net revenue growth of +5% and operating profit growth of +10% (both at constant exchange). This performance benefited from excellent growth in Developing Markets, and the success of new Powerbrand product initiatives such as Lysol No Touch and Air Wick Aqua Mist."
Looking ahead, the company reiterated its full-year forecast for the Group ex-RBP of 5% growth in net revenue and 10% rise in operating profit, both at constant exchange. The guidance assumes no change in current market conditions.
For the total Group, "we are confident of delivering another year of good growth in 2010, notwithstanding potential generic competition to Suboxone in the U.S.," Becht added.
Reckitt Benckiser is currently trading at 3,310 pence, down 26.00p or 0.78%. During the day, RB.L shares touched a high of 3,349p and a low of 3,309p. For the past 52-weeks, the stock has been trading between 2,686p and 3,667p.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.