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Flu outbreak perks up H1 profits at Reckitt Benckiser

Published: 11:20 27 Jul 2015 BST

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Reckitt's hygiene business lifted like-for-like sales

A flu outbreak gave a lift to first-half profits at Nurofen and Strepsils lozenge maker Reckitt Benckiser (LON:RB.), sparking higher forecasts.

The group, which also makes household products such as Cillit Bang, Calgon and Finish, said a "favourable flu season" fuelled a 5% rise in net revenue in the six months to June 30.

Adjusted operating profit increased by 9% to £953mln.

It said the growth was broad-based across its worldwide markets and was led by consumer health and hygiene products.

The group benefited from improved consumer sentiment in India, but Latin American markets, particularly Brazil, were still tough.

In its consumer health division, Scholl Express Pedi foot products, Durex Real Feel condoms and Nurofen headache pills did well.

The group's hygiene business expanded like-for-like sales by 3%, led by Dettol and Harpic in emerging markets.

After the impact of foreign exchange movements and net mergers and acquisitions, total growth was 1%.

Reckitt said it was now targeting full-year like-for-like net revenue growth of 4%-5%.

Chief executive Rakesh Kapoor said: "We have made a strong start to the year and are ahead of our ongoing expectations at this half year juncture."

Shares rose 154p to 6,062p. Analysts at Liberum Capital have a 'buy' recommendation and a 6,550p target price on Reckitt.

They said: "We expect the shares will be up today post numbers and should hold recent gains."

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