Reckitt says annual profits jump 19%
Household products group Reckitt Benckiser said on Wednesday that annual net profits jumped 19.4 percent to 1.12 bn pounds (1.25 bn euros, 1.62 bn dollars)
By Agencies |
LONDON: Household products group Reckitt Benckiser said on Wednesday that annual net profits jumped 19.4 percent to 1.12 bn pounds (1.25 bn euros, 1.62 bn dollars).
The Anglo-Dutch group added that it was cancelling a plan to repurchase shares in 2009 to concentrate on debt repayment.
"Reckitt Benckiser had an excellent year in 2008 despite challenging conditions," chief executive Bart Becht said in comments accompanying the results.
Net profit surged 36 percent to 393 million pounds in the fourth quarter compared with the final three months of 2007 as the company said it enjoyed strong sales of products including Vanish stain remover and Dettol surface cleaner.
"Based on the current market outlook, our targets in 2009 are for net revenue growth of 4 percent and net income growth of 8-10 percent, both at constant exchange" rates, said the company.
It added: "The board also considers that the optimal use of cash flow is currently to repay debt further. Therefore, it has decided to cancel the share buyback programme in 2009."
In morning trade following publication of the results, the share price of Reckitt showed a gain of 4.73 percent to 2,746 pence. London's FTSE 100 index, on which Reckitt is traded, dipped 0.02 percent to 4,212.11 points.
"Not only did they report fourth quarter numbers better than analysts expected but are taking determined measures to reduce debt," said ETX Capital senior trader Manoj Ladwa.
Net debt at the end of the 2008 stood at almost 1.1 billion pounds, a rise of 971 million pounds on a year earlier.
Reckitt said that it planned to pay a full-year dividend of 80 pence per share, up 45 percent from 2007, subject to shareholder approval.
Reckitt, which also makes Nurofen headache treatments, said that annual group revenue had risen 25 percent to 6.56 billion pounds and by a third to 1.83 billion pounds during the fourth quarter.
The Anglo-Dutch group added that it was cancelling a plan to repurchase shares in 2009 to concentrate on debt repayment.
"Reckitt Benckiser had an excellent year in 2008 despite challenging conditions," chief executive Bart Becht said in comments accompanying the results.
Net profit surged 36 percent to 393 million pounds in the fourth quarter compared with the final three months of 2007 as the company said it enjoyed strong sales of products including Vanish stain remover and Dettol surface cleaner.
"Based on the current market outlook, our targets in 2009 are for net revenue growth of 4 percent and net income growth of 8-10 percent, both at constant exchange" rates, said the company.
It added: "The board also considers that the optimal use of cash flow is currently to repay debt further. Therefore, it has decided to cancel the share buyback programme in 2009."
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In morning trade following publication of the results, the share price of Reckitt showed a gain of 4.73 percent to 2,746 pence. London's FTSE 100 index, on which Reckitt is traded, dipped 0.02 percent to 4,212.11 points.
"Not only did they report fourth quarter numbers better than analysts expected but are taking determined measures to reduce debt," said ETX Capital senior trader Manoj Ladwa.
Net debt at the end of the 2008 stood at almost 1.1 billion pounds, a rise of 971 million pounds on a year earlier.
Reckitt said that it planned to pay a full-year dividend of 80 pence per share, up 45 percent from 2007, subject to shareholder approval.
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Reckitt, which also makes Nurofen headache treatments, said that annual group revenue had risen 25 percent to 6.56 billion pounds and by a third to 1.83 billion pounds during the fourth quarter.
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