Reckitt Benckiser upgrades full year forecast

Reckitt Benckiser, the largest maker of household cleaners, continued to stave off the effects of the global economic downturn recording a rise in second quarter profit.

Reckitt Benckiser campaign

It saw net income increase to £310m, from £237m a year earlier. Sales also rose 20% to £1.87bn.

Chief executive Bart Becht says the strong start to the year sees it raising its full year targets. It is now forecasting net revenue growth of 5-6%, compared to the previous forecast of 4%.

It is also predicting net income growth of 10%-11%, which is up from the previous guidance of 8%-10%.

The England-based company has been stepping up marketing activity to prevent consumers from defecting to private labels.

It is also benefiting from the fall in the cost of advertising.

Director of communications and corporate affairs, Andraea Dawson-Shepherd, told Marketing Week that it is seeing real growth in volume terms as it takes market share away from competitors. She adds that while private labels are taking more share, it is “not at our expense”.

“In the second half you will see us continuing to invest in our brands in marketing and media.”

Dawson-Shepherd says in the UK, brands that have performed strongly include Veet, Harpic’s new Rim Block and Optrex ActiMist eye spray.

Elsewhere, Reckitt Benckiser has this month launched the first corporate advertising campaign in its 200-year history

It has been created to boost the awareness of its well-known brands including Nurofen, Vanish, and Clearasil among young people.

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