Reckitt Benckiser missed analyst forecasts today and its share price dropped over 4 per cent despite reporting a 13 per cent rise in pre-tax profits year on year.
 
The cleaners-to-condoms maker missed its fourth quarter earnings forecasts attributing this to a more competitive trading environment.

Reported operating profit for the quarter was flat on the previous year at £602 million.

The company also confirmed a 2 per cent reduction in revenue growth in its European markets during 2010 as a whole.
 
Reckitt confirmed that its 2010 dividend rose 15 per cent to 115 pence, as part of its ongoing commitment to paying 50 per cent of its annual earnings to shareholders.
 
Bart Becht, chief executive officer of Reckitt Benckiser, today played down the negativity, claiming that the company was enjoying another year of market-beating results.

He added, ‘As targeted, like-for-like net revenue growth was up 6 per cent for the group excluding SSL and 5 per cent for the base business, driven in particular by excellent Developing Markets growth.

'Total adjusted net income growth of 15 per cent was also strong. This is further evidence that our strategy of focusing on our Powerbrands, behind new product initiatives and high levels of marketing investment, is one that continues to deliver.’
 
Becht added that he expected 2011 to be another year of above industry-average growth.
 
He said, ‘For the Group excluding SSL, our target is for 4 per cent like-for-like net revenue growth, with profit growth ahead of that. ‘This net revenue target compares to a global market which is currently showing no growth.’