Reckitt puts a polish on profits

MR SHEEN maker Reckitt Benckiser polished its reputation as one of the world's fastest-growing consumer products companies as it issued its second profits upgrade of the year alongside third-quarter results.

The Anglo-Dutch giant's fortunes contrast starkly with those of larger rival Unilever, whose Path to Growth strategy of brand management seems to have shrunk the business, and US giant Colgate, which recently sounded the earnings alarm.

Cut-throat competition, rising raw material costs and falling advertising and marketing spending have conspired to de-rail the sector's losers.

Tight cost control and product innovation have inspired Reckitt's stellar performance. It has come up with a wave of best sellers, including Vanish Oxi Action fabric treatment, Airwick Aroma Oil, MobilAir air freshener and the Harpic Ready Brush lavatory cleaners.

Investors have also noticed the difference. The shares have outperformed the FTSE-100 by 8% in 2004 and Unilever by over a quarter. Reckitt rose by 75p to 1478p.

It posted better-than-expected net profits of £151m - up 23% - and said annual earnings would probably grow by 22%.