RECKITT BENCKISER, the maker of Durex condoms, Nurofen tablets and Finish detergent, raised its full-year sales outlook after reporting better than expected third-quarter sales helped by strong demand for consumer health products.
Reckitt said like-for-like sales rose seven per cent, beating analysts’ expectations of a rise of 5.2 per cent.
As part of its future investment, Reckitt has submitted plans for a £100m Centre for Scientific Excellence in Hull that it said will safeguard jobs for the existing 1,200 employees at its Hull operations and create up to 100 new roles.
A planning application was submitted to Hull City Council last month and work is under way to prepare the site. It is forecast to be up and running in 2018.
Reckitt said net revenue rose to £2.2bn, just short of estimates of £2.21bn.
The firm is targeting annual like-for-like sales growth of five per cent, up from an earlier forecast of four to five per cent.
Analysts at Liberum said in a note: “Reckitt’s strategic focus on faster growing, higher margin Health & Hygiene categories underpins continued acceleration in organic sales growth. Strong cash flow generation provides ample scope for healthy shareholder returns while providing sufficient firepower for M&A.”