A strong cold and flu season is expected to have given sales at Reckitt Benckiser Group (LON:RB.) a boost in the first quarter.
UBS predicts Reckitt, which owns the Nurofen, Mucinex and Strepsils brands, will report organic sales growth of 2.8% in the quarter.
In a February trading update, the consumer goods company said it expects a return to growth in 2018 following flat revenue last year.
The group saw an improvement in the fourth quarter with organic revenue growth of 5%, led by sales of Durex, Nurofen, Mucinex and Strepsils.
For fiscal year 2018, Reckitt estimates organic sales growth of 2% to 3% and for total sales to rise 13% to 14%.
The first quarter trading update follows the group’s announcement in March that it has pulled out of the race to buy Pfizer Inc’s (NYSE:PFE) consumer healthcare business.
Chief executive Rakesh Kapoor said: “An acquisition for the whole Pfizer consumer health business did not fit our acquisition criteria and an acquisition of part of the business was not possible.”
Kapoor said Reckitt’s priority would remain organic growth, the integration of baby formula business Mead Johnson Nutrition and creating value from splitting the business into two divisions - health and hygiene home.
Significant events expected:
Trading updates: Reckitt Benckiser PLC (LON:RB.), Record PLC (LON:REC)