Global consumer goods firm Reckitt Benckiser Group PLC (LON:RB. NYSE:RBGPF) reported flat revenue for the year but it expects a return to growth in 2018 after a pick-up in the final quarter.
The company said net revenue for the year to the end of December 2017 was £11.5bn, unchanged from the previous year on a like-for-like basis.
Supply challenges resulting from a cyber-attack, pricing pressures in developed markets and a weak performance in footcare brand Scholl, offset strong sales from new products and healthcare brands such as Mucinex and Durex.
Adjusted net income, excluding discontinued operations, came to £2.3bn, up 4% at constant exchange rates or 10% at actual exchange rates.
Including discontinued operations, adjusted net income rose 1% at constant currency or 7% on a reported basis to £2.4bn.
During the period, the company agreed to sell its food business to US-based McCormick & Company Inc. (NYSE:MKC) for US$4.2bn in an effort to streamline the business and cut debt.
The group returned to like-for-like revenue growth in the fourth quarter with a 5% increase, led by sales of Durex, Nurofen, Mucinex and Strepsils.
“For 2018 we are targeting +13-14% total revenue growth (implying +2-3% LFL revenue growth),” said chief executive Rakesh Kapoor.
“Whilst 2018 will see some specific factors impacting margin, we reiterate our medium-term target of moderate operating margin expansion."
Meanwhile, broker s expect speculation around Reckitt's bid to buy Pfizer's (NYSE:PFE) consumer business to remain a hot topic.
Earlier this month, it emerged that Reckitt and GlaxoSmithKline plc (LON:GSK) submitted rival bids for the business, which owns pain reliever brand Advil.
The unit is expected to fetch between US$15bn to US$20bn.