9-Feb-2012 - Reckitt Benckiser to target global 'powermarkets' to bolster growth

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Reckitt Benckiser to target global 'powermarkets' as it seeks to bolster growth prospects By This Is Money Reporter Last updated at 3:30 PM on 8th February 2012 Household goods giant football jerseys Reckitt Benckiser is overhauling strategy under its new boss to focus more on high-growth emerging markets.Rakesh Kapoor, who became chief executive in September after 25 years with the company, today hailed a decade of 'superior growth' but warned the company must keep ahead of the game.The company, which owns brands such as Dettol and Cillit Bang, has identified 16 so-called 'powermarkets' for increased investment, most of which are in emerging economies. Meanwhile, the European and North American divisions will be merged to reflect the slowdown in growth and consumer spending in the regions.Kapoor said the company will focus on emerging markets to tackle slower market growth as it unveiled a 12 per cent hike in annual operating profits kids nfl jerseys to £2.4billion. Net revenues were up 12 per cent to £9.5billion. The total annual dividend was hiked 9 per cent to 125p. Mr Kapoor said: 'Reckitt Benckisher has delivered a decade of superior growth and shareholder value. However, with slower market growth and increased competition, we need to reshape our strategy to enable us to continue our track record of outperformance.'Reckitt, which is headquartered in Slough, Berkshire, previously identified a set of 'powerbrands', such as Nurofen, Durex and Strepsils, which make up its core business, while its food division, which includes French's Mustard, was labelled non-core.Reckitt's shares rose 95p to 3,477p in early afternoon trading.Mr Kapoor replaced Bart Becht, who stepped down after heading Reckitt and before that its Dutch merger partner Benckiser for 16 years.View from the CityBroker Collins Stewart, which has a sell recommendation on the stock, said that the strategic review was sensible but complex given the restating of geographic and product divisions.It said the strategy suggested that the new Reckitt would be a lower-growth company, operating in increasingly mature categories, with the prospect of the 25 per cent of profit coming nike nfl jerseys from the pharmaceuticals arm being eroded over the next one to two years.

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