(Alliance News) - Reckitt Benckiser Group PLC reported on Wednesday that net revenue increased but profit was down in its half year.
Reckitt Benckiser, a Slough, England-based consumer goods company, said its pretax profit in the six months ended June 30 was GBP1.64 billion, down from GBP1.69 billion the prior year. The company said this was due to net finance expenses widening to GBP166 million, from GBP33 million the year before.
Net revenue in the first half was up 8.1% at GBP7.45 billion, from GBP6.89 billion the prior year, which the company said was broad-based across its Global Business Units, with a strong innovation program.
Free cash flow was up 4.3% at GBP758 million in the six months, from GBP727 million at the same point the year before. Net debt narrowed to GBP7.9 billion, from GBP8.6 billion year-on-year.
The company declared an interim dividend of 76.6 pence per share, up 5.0% from 73.0p the prior year, which the company said was consistent with its aim of delivering sustainable dividend growth.
Chief Executive Officer Nicandro Durante said: "The strong first-half performance gives us confidence in our full year targets, despite some tough comparative in our over-the-counter portfolio and an expected tougher competitive environment in US Nutrition in the second half."
Reckitt Benckiser said it now expects its 2023 adjusted operating margins to be "slightly above" the 23.8% seen in 2022, having previously guided for "in line or slightly above". It maintained its life-for-like net revenue growth target of between 3% and 5% for 2023.
In the medium term, the company said it expected adjusted operating profit to grow ahead of net revenue growth by the mid-2020s.
"Amidst a backdrop of challenging market conditions and uncertainty, the business has strong momentum, yet with an opportunity to further strengthen our execution, optimise our cost base, and deliver improved returns to shareholders."
Shares in Reckitt Benckiser Group PLC were down 1.5% to 5,852.00 pence in London on Wednesday morning.
By Will Neill, Alliance News reporter
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