Reckitt's 'good' quarter despite US hit

Reckitt, which has come under scrutiny in recent weeks after it emerged that chief executive Bart Becht made more than 90m in pay and shares last year, said first quarter operating profits were 16 per cent higher at constant currency rates.

The firm said the figures supported its expectations for the financial year as total revenues were up 6 per cent to 2bn in the period.

Mr Becht said the firm had enjoyed a "good quarter" and forecast strong growth in 2010 despite the anticipated hit from US competition from generic drugs for one of its key pharmaceutical products.

The group said it was not giving 2010 forecasts for the whole group because of the uncertainty over the future performance of its opiate dependence treatment Suboxone in the US. Excluding its pharmaceuticals division, it expects to see net revenues rise 5 per cent this year, while operating profits are predicted to rise 10 per cent.

Reckitt, which has a division in Hull employing 800 people, said European sales accounted for 45 per cent of net revenue, while North America and Australia was 26 per cent and developing markets 22 per cent.

In Europe total net revenue was unchanged compared to the same period last year, at 906m, as growth among its home care products was offset by weakness in fabric care, while other key sectors were relatively flat.

The increase in the home care section was put down to growth of its Airwick i-motion, an automatic air freshener spray that releases scent during the day and gives an extra squirt when it detects movement.

Weak demand for laundry detergent, fabric conditioner and water softeners impacted on the fabric care lines.

Reckitt warned that its pharmaceuticals division, which accounts for 7 per cent of net revenue, would take a hit from the loss of its exclusive licence for its Suboxone drug in the US.

Reckitt, whose brands also include well-known names such as Strepsils, Cillit Bang and French's mustard, traces its roots back to 1823 and was formed by a merger of Reckitt & Colman and Benckiser in 1999.