Reckitt Benckiser half year total net revenue was £4,356mStaff writer ▼ | July 28, 2015
Reckitt Benckiser Group (RB) reported that its half year (HY) 2015 total net revenue was £4,356m, a LFL increase of +5% (+4% total at constant rates due to the impact of net M&A).
Reckitt Benckiser Group A LFL increase of +5%
The company saw improved consumer sentiment in India, however LATAM and particularly Brazil remains tough.
From a category perspective, growth has been driven by an excellent +13% LFL performance in consumer health with growth across many of company's brands, a successful launch of company's new Footcare brand, Amopé in the US, continued success of the Scholl express pedi range, Durex and Nurofen.
Company's VMS brands had a mixed performance with growth from Airborne, Move Free and Digestive Advantage whilst MegaRed remains challenging. Hygiene grew at +3% LFL led by Dettol and Harpic in company's emerging markets, and Home grew +1% LFL with an improved Q2.
The K-Y acquisition has been successfully integrated into company's operations with the exception of the UK, where regulatory approval is pending, and the de-minimus New Zealand business where we were unable to acquire the brand due to anti-trust reasons. The company continue to work on plans to maximise shareholder value for the Medcom hospital glove business.
Gross margin expansion was +90bps to 57.6%. This was due to a combination of beneficial mix driven by strong growth in consumer health brands, a favourable input cost environment, and savings from cost optimisation programmes, Project Fuel, offset by adverse currency movements. ■