Reckitt Benckiser has raised its revenue forecast for its core brands this year, following a major simplification initiative undertaken last year.
The FTSE 100 company now anticipates like-for-like net revenue growth to be above four per cent in 'Core Reckitt' brands – which include Dettol, Nurofen and Lysol – this year, an increase from the previously estimated three to four per cent, as reported by .
In the previous year, Reckitt declared its intention to concentrate on these 'Powerbrands' and divest non-core home care brands such as Cillit Bang, water softener Calgon, and air freshener Air Wick.
Earlier in July, the consumer goods behemoth announced the sale of its Essential Home business to private equity firm Advent International for £3.6 billion ($4.8bn), with Reckitt retaining a 30 per cent minority stake.
Its essential home business experienced a 6.5 per cent contraction in the first half of the financial year, while its 'core' products saw a growth of 4.2 per cent.
Overall sales increased by 1.5 per cent on a like-for-like basis, with operating profit rising by 1.8 per cent to £1.7bn.
CEO Kris Licht commented on the "strong first half performance."
"[It] demonstrates the strength of our Powerbrands and the positive impact of the strategy we launched a year ago," said Licht.
"We have taken a significant step to unlocking value with the announced divestment of Essential Home. Our new operating structure has sharpened our focus, delivering improved execution with continued market share gains and volume momentum.
"We delivered excellent growth in Emerging Markets and navigated a challenging consumer environment in our Developed Markets.
"While there is still much work to do, the journey to fundamentally reshape Reckitt into a more efficient, world-class health and hygiene company is well underway and reflecting that we are upgrading our life for like net revenue guidance for 2025," he said.
