Reckitt Benckiser 1st quarter

Reckitt Benckiser Group is a manufacturer and marketer of branded products in household, health and personal care products, sold into nearly 200 countries from operations in over 60 countries.  I have a holding in my income portfolio (epic code: RB.) 

 

Reckitt Benckiser released details of their first quarter trading today, which proved to be very positive.  Revenue increased by 1% to £2,216m and increased by 5% on a like-for-like basis. 

By territories like-for-like growth was: North America +3%; Rest of ENA +5%; Developing Markets +6% and Food +4%.  Management have cautioned that the outlook for Russia remains uncertain given the current market and currency issues, despite a strong performance in the quarter.  South East Asia markets are challenging and Latin America is weaker.

By category like-for-like growth was: Health +13%; Hygene +3%; Home -1% and Portfolio -3%.  Portfolio was affected by weak laundry detergents and fabric softeners.

Management stated that they are on track to achieve their 2015 financial targets of like-for-like growth of +4% and expansion in operating margins.