Reckitt to increase price of products

HEALTHCARE AND household detergent company Reckitt Benckiser will raise the prices on its consumer goods later this year to recoup higher raw material costs, the company said yesterday.

The announcement came as the company reported a 10 per cent increase in profits in the second quarter of 2008, according to a trading update issued yesterday.

The FTSE 100 listed company's share price bounced almost 3 per cent in London trading as the company said it was on track to meet annual sales and profit targets, after advertising and earlier price increases fuelled its performance in the first half.

The maker of brands that include Strepsils throat lozenges and Vanish stain remover said it would raise prices by a "mid-single-digit" amount at the end of 2008 in order to recoup higher raw material costs.

The British firm, which has an operation in Ireland, posted adjusted net profit for April to June of £240 million (€304 million), at the top of end of analysts' forecasts. Its healthcare brands include Dettol, Nurofen and Clearasil, while its cleaning brands include Harpic and Cillit Bang.

The company's chief executive, Bart Becht, said the group had a very good first half with net revenue growth of 11 per cent.

Reckitt's Irish operation paid a dividend of €5 million to its Luxembourg-based parent in 2006, according to documents filed at the Companies Office. (Additional reporting: Bloomberg)