Reckitt Benckiser Group (LON:RB) revealed its full year results on Monday. The consumer goods company reported a 65% drop in its annual profit as a result of one-off gains from the previous year.
Net income slid 65% to £2.16 billion. The company has said that 2017 saw exceptional scenarios that increased its profit. These include the sale of the company’s food business and tax credits.
Revenue increased by 10% to £12.6 billion. Moreover, adjusted operating profit increased 8% to £3.36 billion.
Like-for-like revenue increased 3%, coming in at the top end of the 2-3% guidance.
As for 2019, Reckitt Benckiser has said it will target a 3-4% growth in like-for-like revenue.
Rakesh Kapoor, Chief Executive Officer of Reckitt Benckiser, commented on the results:
“2018 was a year of good financial progress, achieved in an environment of both significant change within the company, and challenging market conditions. We delivered the upper end of our 2018 revenue growth target, and accelerated the delivery of MJN cost synergies versus our ingoing expectations.”
“2018 was also a year of significant strategic progress. RB2.0 represents a platform to transform RB for growth and outperformance. In 2018 we fully integrated MJN to create RB Health. And at the same time we created RB Hygiene Home, which has reignited growth with a more focused and agile organisation.”
“As we look to the future, we are well positioned for long term, sustainable growth, from the excellent portfolio of brands within each of our more focused and agile Business Units.”
“For 2019 we expect momentum to continue, and target +3-4% LFL net revenue growth. We expect to maintain the adjusted operating margin as we generate our usual RB cost and efficiency savings, and deploy them into building two even stronger businesses.”
In October, the group reported a smaller-than-expected increase in underlying quarterly sales as a result of a manufacturing disruption at a European baby formula factory. However, it reported solid sales and revenue growth in the first quarter.
At 08:22 GMT Monday, shares in Reckitt Benckiser Group plc (LON:RB) were trading at +1.84%.