Reckitt beats second-quarter sales estimates on emerging markets strength
Reckitt's Second-Quarter Performance Overview
July 29 (Reuters) - Dettol maker Reckitt beat second-quarter sales growth estimates and reaffirmed its annual forecast on Wednesday, as strong demand in China, India and other emerging markets helped offset weakness in Europe and disruption linked to the Iran war.
Share Buyback Programme
The consumer goods group, which makes Durex condoms and Finish cleaning products, also announced a new share buyback programme of up to £500 million ($664.9 million).
Emerging Markets and Growth Drivers
Role of Emerging Markets
Emerging markets have remained a key driver of growth for Reckitt and other consumer goods companies, including Unilever, helping cushion the impact of higher costs and supply-chain disruptions stemming from tensions in the Middle East.
Challenges in Key Markets
Impact of Sanctions and Taxes
Reckitt continues to face several challenges, including the effects of Western sanctions on its Russian business, new taxes on condoms in China, and ongoing litigation against its baby formula business Mead Johnson.
Financial Results
The company reported like-for-like net revenue growth of 4.2% in its core business for the quarter ended June 30, compared with the 3.6% forecast by analysts in a company-compiled poll.
Exchange Rate Information
($1 = 0.7520 pounds)
Reporting Credits
(Reporting by Shashwat Awasthi in Bengaluru and Richa Naidu in London; Editing by Sherry Jacob-Phillips)