05.13.04
New stain removers and toilet cleaners and strong demand for flu treatments and pest control products helped Reckitt Benckiser beat forecasts for first quarter profits, according to the company. However, the British maker of Mr. Sheen polish, Dettol antiseptic and Finish and Calgonit dishwasher products said it was too soon to raise its full year financial targets.
Tom Corran, investor relations and corporate communications director, said the first quarter normally made the weakest contribution to full-year results and this period had also benefited from virulent flu outbreaks in the northern hemisphere and humid weather in the south, which boosted sales of Lemsip flu remedies and Mortein Professional pest control products.
Net profits rose 31% and net revenues climbed 12%, bolstered by new products such as Vanish Oxi Action stain removers and Lysol Ready Brush toilet cleaners. Strong sales of higher margin new products such as Airwick Aroma Oils air fresheners and Veet Rasera bladeless hair removal kits combined with continuing cost cuts to offset a rise in advertising spending to promote the new launches.
Reckitt faces fierce competition against U.S. and European rivals such as Procter & Gamble and Henkel. Reckitt executives said the firm had spent about 65 million pounds on buying back shares over the past two quarters, and planned to reach a target of spending 250 million pounds by the end of the third quarter. The firm is seeking acquisitions, particularly those that extended its geographical reach or strengthened existing product areas, according to executives.
Tom Corran, investor relations and corporate communications director, said the first quarter normally made the weakest contribution to full-year results and this period had also benefited from virulent flu outbreaks in the northern hemisphere and humid weather in the south, which boosted sales of Lemsip flu remedies and Mortein Professional pest control products.
Net profits rose 31% and net revenues climbed 12%, bolstered by new products such as Vanish Oxi Action stain removers and Lysol Ready Brush toilet cleaners. Strong sales of higher margin new products such as Airwick Aroma Oils air fresheners and Veet Rasera bladeless hair removal kits combined with continuing cost cuts to offset a rise in advertising spending to promote the new launches.
Reckitt faces fierce competition against U.S. and European rivals such as Procter & Gamble and Henkel. Reckitt executives said the firm had spent about 65 million pounds on buying back shares over the past two quarters, and planned to reach a target of spending 250 million pounds by the end of the third quarter. The firm is seeking acquisitions, particularly those that extended its geographical reach or strengthened existing product areas, according to executives.