trending Market Intelligence /marketintelligence/en/news-insights/trending/iehrtoebpai7abgozwlb5g2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us
In This List

Reckitt Benckiser reports H1'18 profit above expectations


M&A rebound sparks optimism for near-term deal activity


What's on the Horizon for the Cruise Hotel Resorts Sector


Message in a (Word)Cloud

Six trends shaping the industries and sectors we cover in 2021

Reckitt Benckiser reports H1'18 profit above expectations

U.K. consumer goods maker Reckitt Benckiser Group PLC on July 27 reported first-half earnings above expectations due to the strength of its infant formula and child nutrition business, and it boosted its guidance for full-year 2018 revenue.

The manufacturer of Lysol disinfectant products and Nurofen pain relief said in a statement that it increased its target for total net revenue growth at constant rates to 14% to 15% from a previous goal of 13% to 14%, implying like-for-like revenue growth at the upper end of its 2% to 3% range. Its outlook for full-year operating margin was unchanged.

Reckitt Benckiser reported adjusted diluted earnings per share in the six months to June 30, 2018, rose to 139.9 pence from 124.9 pence, beating a mean consensus of 139 pence compiled from three analysts' estimates, according to data from S&P Capital IQ.

Net income jumped to £874 million from £512 million as revenue soared to £6.14 billion from £4.98 billion.

In the second quarter, net revenue was £3.03 billion, an increase of 5% year over year on a pro forma basis and 4% on a like-for-like basis. A cyberattack dented performance in the second quarter of 2017 and added about 2% to the like-for-like comparison.

Additionally, Reckitt Benckiser acquired Mead Johnson Nutrition Co. on June 15, 2017, allowing its performance to be included in like-for-like comparisons for the first time. The Slough, England-based company said it was on track to realize $300 million in synergies from the Mead Johnson deal by the end of the third year of ownership, an increase of $50 million on its original $250 million goal.

"Delivering growth and the successful integration of MJN remain our key priorities," Reckitt Benckiser CEO Rakesh Kapoor was quoted as saying in a statement. "Q2 was a quarter of progress against both of these priorities."