Shares in Reckitt Benckiser (LSE: RB) (NASDAQOTH: RBGLY.US) rose by more than 5.5% in early trade this morning, following positive third-quarter results for the consumer goods company.
Net revenue lifted 5% compared to the same period last year, to £2.55bn, contributing to a year-to-date increase of 6%, coming in at £7.54bn.
Broken down by category, Health was the star performer after a 27% rise in net revenue against Q3 2012, with Hygiene also performing well with a 5% lift. However, Home was down marginally by 1% and Portfolio Brands dropped by 19%, led largely by a fall of 14% in RB Pharmaceuticals (RBP).
Chief Executive Officer Rakesh Kapoor commented:
“Reckitt Benckiser’s focus on Health and Hygiene and emerging markets, along with our move to drive growth in ENA through increased investment behind innovations and a streamlined organization structure is delivering good results.
“Regarding RBP, we are commencing a strategic review of the business and will consider all options for maximising value for our shareholders. We expect the review to take some time and will update shareholders during the course of 2014.
“Our recent acquisitions are performing strongly, ahead of in-going assumptions and consequently, we now believe that our full year net revenue growth (ex RBP) including the net impact of M&A will be at least 6%. We continue to expect to maintain full year margins (ex RBP).”
The market responded well to Reckitt’s new focus on emerging markets, and throwing off a 3% yield as it does, it may be worth considering as part of your portfolio with that exposure.
