Reckitt profit boost

Reckitt Benckiser has reported a 15% increase in adjusted net income following the launch of new products such as Air Wick Freshmatic.

The rise is in line with previous guidance and market forecasts. The company also benefited from strong growth of ex-Boots Healthcare International (BHI) brands Nurofen, Strepsils, and Clearsil.

Profit growth was also helped by strong gross margin expansion and synergies from the £1.9 billion acquisition of BHI coming in ahead of schedule. Reckitt acquired BHI in early 2006.

Cumulative synergies from the deal totaled £87 million at the end of 2007, ahead of Reckitt's increased target of £80 million.

Adjusted net income increased to £905 million, from £786 million the previous year. Market expectations had ranged between £900-912 million. Shares were steady, up marginally by 17p to 2,672 pence in early trade.

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