The boss of Reckitt Benckiser on Monday cheered sales growth and signalled that the consumer goods giant has no regrets about opening a new £105 million UK research centre in post-Brexit Britain.
Rakesh Kapoor made the comments as Reckitt Benckiser, which is behind the Durex, Dettol and Nurofen brands, posted a 10% jump in full-year revenues to £12.6 billion.
The FTSE 100 firm first unveiled plans to invest in a science and innovation centre in Hull in 2014. It has had a presence in the Yorkshire city since 1840.
Kapoor said today: “Despite Brexit we continue to make the investment in Hull and that investment is going to happen sometime in the second half of this year [when the site opens].”
On Britain’s looming departure from the EU, he said: “We’re prepared for all of the scenarios.”
His company was also upbeat about 2019, predicting sales growth of 3-4%. Operating profit margins will be flat.
The forecast comes after a good final quarter, with sales up 2% to £3.3 billion. Reckitt Benckiser pointed to good performances in its hygiene and health businesses. The latter division saw growth despite a weak start to the flu season hitting sales of Strepsils.
Pre-tax profits in 2018 rose to £2.7 billion from £2.5 billion. It benefited from receiving a full-year contribution from US baby formula maker Mead Johnson, which it bought for $17 billion in 2017.
The firm last year created two divisions to drive growth: health, and hygiene and home.
Kapoor, who retires at the end of the year, said: “2018 was a year of good financial progress, achieved in an environment of significant change within the company, and challenging market conditions.”
Shares rose 297p, or 5%, to 6314p.
