Reckitt Benckiser posts rise in Q3 earnings

The group is under pressure from slow European growth and heightened competition from rivals, but hopes to boost overall growth after completing the acquisition of SSL this week.

Chief Executive Bart Becht said that after strong results for the first nine months, the group is looking for sales growth of 6 per cent and net profit up 16 per cent in 2010 before the effect of the SSL acquisition, while its targets stripping out the pharmaceuticals business were unchanged.

"For the business ex-RBP (pharmaceuticals), there is no change to our previously communicated full-year targets," he added in a results statement.

The group's full-year 2010 targets are for a 5 per cent rise in underlying sales and 10 per cent increase in operating profit after stripping out its high-growth Suboxone pharmaceuticals unit and taken at constant currency.

Reckitt agreed to buy SSL in July for 2.54bn and, after the disposal of two minor brands to satisfy European Union regulators, the deal was completed on Monday.

Analysts are upbeat after Reckitt's successful acquisitions of Boots's non-prescription arm in 2006 and US cough medicine business Adams in 2008.

Reckitt's health and personal care business is a key driver of growth through its Nurofen, Strepsils throat lozenges and Clearasil skin treatment, and with SSL it will now account for around one-third of group revenue.

In July, Reckitt warned of shrinking European growth and posted its first ever quarter-on-quarter underlying sales dip in the region as rivals such as US giant Procter and Gamble launched fabric care and dishwasher products.

Reckitt employs about 1,300 in Hull at its manufacturing and research and development sites, part of a workforce of almost 25,000 globally.