Shares in Reckitt Benckiser (LON:RB) have climbed higher in London in today’s session as the company’s fourth-quarter sales surpassed analyst expectations. The maker of Nurofen and Vanish further noted that it expects momentum to continue in the new year.
As of 08:39 GMT, Reckitt Benckiser’s share price had added 1.50 percent to 6,107.00p, outperforming the benchmark FTSE 100 index which is currently 0.25 percent worse off at 7,218.28 points. The group’s shares have lost more than seven percent of their value over the past year, as compared with a one-percent dip in the Footsie.
RB posts Q4 and FY results
Reckitt Benckiser announced in a statement this morning that its like-for-like revenue had inched four percent in the last quarter of 2018 at constant exchange rates. Reuters noted in its coverage of the news that the result was ahead of analysts’ average estimate of 3.3 percent growth in a company-supplied consensus.
LFL growth for the full year was three percent, while operating profit rose 16 percent to £3.05 billion.
“2018 was a year of good financial progress, achieved in an environment of both significant change within the company, and challenging market conditions,” Reckitt Benckiser’s chief executive Rakesh Kapoor commented in the statement, adding that for 2019 the company expects momentum to continue, and targets three-four percent LFL net revenue growth.
Analysts weigh in on update
Proactive Investors reported that Liberum had called the results ‘solid’ and was relieved there had been no erosion to profit margins. The broker is bullish on Reckitt Benckiser with a ‘buy’ rating.
The results come after Jefferies recently reaffirmed the company as an ‘underperform,’ cautioning that a weak cold and flu season in the US has impacted the sales of the group’s over-the-counter medicine Mucinex.
As of 09:17 GMT, Monday, 18 February, Reckitt Benckiser Group Plc share price is 6,107.00p.