British consumer goods giant Reckitt Benckiser posted record annual profit and lifted its forecasts after signing up the world’s biggest drinks company to develop and manufacture its brands.
The group, which makes Scholl foot care and Durex condoms, said that it was also focused on cost-cutting after buying Mead Johnson Nutrition and Ultralife Batteries earlier this year.
Reckitt Benckiser, which is based in Wrexham, said that profit before tax in the 12 months to May was £2.79bn, up 16% from £2.38bn.
Sales at the group also rose in the same period to £12.13bn, up 6% on the previous year.
Richard Hunter, head of equities at Martin Currie, said that Reckitt’s main focus had shifted over the past year or so from its group’s industrial operations to its consumer business, with sales in the industrial segment now at a standstill.
Reckitt has faced tough competition for new products and will be hoping that these strategic changes will help to boost earnings, Mr Hunter said.