Reckitt Benckiser points to brand building and innovation for revenue lift

Reckitt Benckiser has credited increased investment in brands such as Durex, Nurofen and Dettol and its decision to spend extra on product innovation after posting a 5 per cent increase in quarterly revenue.


The global increase in revenue for the three months to 30 September was driven by gains in Latin American markets, where sales of brands on sale for a year or more grew 10 per cent. European sales grew 2 per cent over the period.

The company continues to invest in NPD to boost the convenience and performance of products in categories such as household and personal care, where innovation is necessary to boost otherwise flat growth.

It has also committed to increasing the proportion of revenue it reinvests back into brand building.

Rakesh Kapoor, chief executive officer, says in a statement: “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 organisation structure is delivering good results.”

He adds: “Looking ahead, we all know that market conditions remain challenging, but I am confident that our strategy for growth and outperformance underpinned by our commitment to invest for the long term is the right thing to do.”

Elsewhere, the company says its Durex brand is being used as a source of “next practice” in digital communications and new marketing. Brand chiefs recently launched branded “touch over the internet” technology allowing partners to virtually “touch each other”.

The company also announced it is reviewing options for its pharmaceuticals unit, which could lead to the sale of what has been valued at £2bn. Revenue from the unit fell 14 per cent in the period.

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