By Michael Carolan
Of DOW JONES NEWSWIRES
LONDON -(Dow Jones)- Reckitt Benckiser PLC (RB.LN) once again raised its full-year sales and profit targets Tuesday after its core business and pharmaceuticals division continued to beat expectations in the third quarter.
The household cleaning and personal care products maker said its net profit in the three months to Sept. 30 was GBP357 million, up 12% from GBP285 million last year, and ahead of expectations of about GBP340 million.
Sales were GBP1.91 billion, up 15%. Stripping out the effect of currency movements, second-quarter sales were up 7%, compared with an 8% rise in the previous three months and ahead of expectations of 6.6%.
"This result was supported by our 17 Powerbrands, behind significant investment in media and marketing and successful new product initiatives," said Chief Executive Bart Becht said in a statement.
The company raised its full-year target for sales growth at constant exchange rates to 6%-7% from previous guidance of 5%-6%. Net profit is now expected to grow between 12% and 13% for the full year, compared with previous expectations of between 10% and 11%.
Becht cited continued strong momentum in the company's core business and "upside" in the pharma division. as reasons for the upgrade.
The company raised its revenue and profit growth targets as recently as July.
The maker of a products such as Lysol, Clearasil, Cillit Bang and Senokot historically uses its quarterly updates to raise its full-year targets. Last year's underlying sales growth of 10% compares with an original target of 6%-to-7%.
By 1213 GMT, the company's shares were up 9 pence, or 0.3%, at 3091 pence. The shares have risen about 20% since the turn of the year as the company continues to shrug off the effects of the global downturn.
Reckitt has consistently outperformed its rivals for years, due to its focus on a limited number of leading brands, its lean operations and its industry-leading innovation programs - which attract customers to its brands even when money is tight.
-By Michael Carolan, Dow Jones Newswires; 44-20-7842-9278; michael.carolan@dowjones.com