Full-year results from Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) come four months from its last update, in which time rival Unilever reported a squeeze on margins due to input cost inflation.
The October update from the maker of everything from Durex condoms and Clearasil spot creams, to Air Wick fresheners and Nutramigen infant formula, revealed slower sales growth but continued confidence that it would be able to pass on all cost hikes to consumers for the rest of the year.
Analysts at UBS said they forecast a 2.9% decline in nutrition sales but a 4% uptick in health and hygiene.
Nutrition’s profitability will “substantially decline as the division laps last year’s inflated profits in the US and a one-off £59mln benefit.”
“We expect the group’s adjusted operating margin to be broadly unchanged year-on-year,” said the broker.
Additionally, the UBS analysts said they believe second-half sales for RB should be stronger contrary to most companies under its coverage.
Reckitt’s shares are relatively flat over the past year, changing hands at 5,778p.