Reckitt H1 profit drops, FY outlook reaffirmed at bottom end of range

FTSE 100 consumer goods group Reckitt Benckiser posted a drop in first-half pre-tax profit but a rise in revenue, as it reaffirmed its full-year net revenue target at the lower end of its guidance range

Pre-tax profit came in at £751m, down from £921m in the first half of last year, although net revenue on a like-for-like basis was up 5% to £4.57bn.

The Dettol maker declared an interim dividend of 58.2p, up 16% from the previous year.

Chief executive officer Rakesh Kapoor said: “We have delivered a strong, half-year performance with balanced and broad based growth across both markets, and categories, and delivered further margin expansion. These results reflect our continued focus on our power markets, power brands and our virtuous earnings model. Growth was underpinned by a combination of innovations, such as Dettol Gold and Durex Invisible, and penetration building initiatives, particularly in emerging markets.

The company reaffirmed its full-year like-for-like net revenue target, but said that given the issue with its humidifier sanitizers in South Korea – which led to deaths and respiratory illnesses – it is at the lower end of its previous forecast of 4% to 5% growth.

Reckitt recorded an exceptional charge of £300m due to the issue with the humidifier sanitizers sold by its Korean Oxy unit.

“We have expressed our sincere apologies to all individuals and their families who have suffered from lung injury as a result of the HS issue,” the company said.