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Reckitt Benckiser Raises Sales Outlook as Quarter Tops Estimates

By Steve Wynne-Jones
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Reckitt Benckiser Raises Sales Outlook as Quarter Tops Estimates

Reckitt Benckiser Group Plc, the maker of brands including Durex, Finish, Calgon and Harpic, reported third-quarter revenue growth that beat estimates and raised its full-year growth target.

Sales rose 7 percent, excluding acquisitions, disposals and currency shifts, the Slough, England-based company said in a statement Wednesday. The median estimate of 15 analysts surveyed by Bloomberg was for a 5.2 percent gain. Revenue in the company’s health unit rose 14 percent, beating analysts’ estimates.

Reckitt Benckiser forecast sales for the year will gain 5 percent, raising the forecast from a range of 4 percent to 5 percent. Chief Executive Officer Rakesh Kapoor, who marked his fourth anniversary as CEO in September, plans to cut costs by more than 150 million pounds ($232 million) a year by reducing expenses such as travel budgets.

He has also widened profit margins by introducing new products such as Amope Velvet Express Pedi footcare and Durex Real Feel condoms.

Revenue for the first nine months of the financial year rose 6 percent on a like-for-like basis to 2.2 billion pounds.

News by Bloomberg, edited by ESM. To subscribe to ESM: The European Supermarket Magazine, click here.

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