New lines spur Reckitt to up targets

KING of the cleaners Reckitt Benckiser has unveiled better-than-expected profits for the first six months of the year and raised its financial targets for the full year.

The Anglo-Dutch maker of household goods, toiletries and pharmaceutical products said growth in western Europe and North America had more than offset a slowdown in developing markets, with new products driving higher sales.

Chief executive Bart Becht said the strong results enabled him to raise his targets. He said: 'For net revenue growth, we now target for the upper end of the 4%-6% range established earlier this year. For net income, our new growth target is around 18% compared with the 12-15% growth target established earlier this year.'

Operating profits in the six months to 30 June were up 11% at £257m as net revenues rose 3% to £901m. Net income was 21% higher at £103m. The launch of Vanish Action Ball and Powershot carpet spot and stain treatment in the US helped the biggest division, fabric care, grow sales by 6% to £444m but the fastest-growing area was personal care.

Hair-removing creams and antiseptics were the twin stars in health and grooming, which boosted sales by 11% to £277m.