Guidance for 2019 appears to be strong, with potentially higher revenue growth expected.
Reckitt Benckiser shares rise as group posts healthy results
- Solid results help boost shares by over 2.5% in early trading
- Revenue growth at the top end of analyst expectations, helping restore investor confidence
- We maintain our ‘hold’ recommendation on the stock
Investors will not be rushing for the Nurofen this morning as there was a solid performance across the business from Reckitt Benckiser in its full year results this morning. As well as Nurofen, the group make other famous brands such as Dettol and Cillit Bang.
Overall revenue came in towards the top end of analyst expectations, leading to an 8.9% rise in profit of £2.7 billion and there was 3% rise in like for like sales.
The shares were up over 2.5% in early trading helped by improving sales growth over Q4. Emerging market growth has been important for Reckitt and there was a strong performance in India and Brazil, although China was mixed.
The soon to depart CEO stated that progress was made over 2018 with its strategic plan and the momentum is expected to continue in the year ahead, with the group giving guidance for 2019 revenue growth of between 3% and 4%.
After a difficult couple of years these results may help restore a measure of investor confidence in the group. We maintain our lower risk ‘hold’ view on the stock.
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