Reckitt Benckiser share price down on FTSE 100 despite rise in FY income

Shares in Reckitt Benckiser were down on the FTSE 100 in morning trading despite the consumer goods company reporting a rise in revenue and net income in the full year 2010.

Net revenue increased nine per cent to £8.5 billion, while net income rose 11 per cent to £1.6 billion.

In the fourth quarter of the year net revenue climbed 10 per cent to £2.3 billion and net income dropped eight per cent to £414 million.

At the end of the year the group said it had net debt of two billion pounds. At the end of the previous year Reckitt Benckiser had net cash of £220 million.

Bart Becht, Chief Executive Officer of Reckitt Benckiser, said, "Reckitt Benckiser enjoyed another year of market-beating results, despite declining global market growth."

Keith Bowman, Equity Analyst at Hargreaves Lansdown Stockbrokers, commented, "Despite progressive results, Reckitt has fallen victim to high expectations and increased uncertainties going forward.

"Sales in the Emerging Markets continue to expand, whilst the group's move to strengthen its healthcare product array remains ongoing - both underlined by an Indian healthcare company acquisition (Paras Pharmaceuticals Limited) back in December (2010). A relentless focus on cost removal continues, with acquisitions adding to opportunities, whilst a trusted formula of product innovation and heavy advertising remain central to the group's business model.

"Nonetheless, rivals such as Unilever continue to up their game, whilst giants such as Procter & Gamble are now taking aim at Europe and the Emerging Markets. The loss of a key drug patent and expected generic competition continue to overhang, whilst costs from rising commodity/raw material prices are set to increase.

"In all, the group's faultless execution record is being slowly overshadowed by building uncertainties, with a positive market consensus opinion (buy) likely to come under some pressure following today's results."

By 09:35 shares in Reckitt Benckiser were down 3.77 per cent on the FTSE 100 to 3,315.00 pence per share.