Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Manufacturing

Reckitt Benckiser to spin off pharmaceuticals arm

Bayer-pharmaceuticals

British household goods firm Reckitt Benckiser (RB) has decided to spin off its US-based pharmaceuticals division, it announced on Monday after a strategic review.

The company will float the unit, RB Pharmaceuticals, on the London stock market later this year, it said in a statement which also revealed that first-half net profits jumped by almost a quarter.

“We believe that RB Pharmaceuticals has the potential to deliver significant long term value creation as a stand-alone business,” said Reckitt chief executive Rakesh Kapoor in the earnings release.

“We have therefore decided to pursue a demerger of RB Pharmaceuticals with a separate UK listing. We expect this to take place over the next 12 months.

“This will also allow RB to focus on its core strategy to be a global leader in consumer health and hygiene.”

Reckitt added on Monday that group net profits surged by 23 percent to £812 million ($1.4 billion, 1.0 billion euros) in the six months to June 30 from a year earlier, boosted partly by cost-cutting.

Revenues however dipped seven percent to £4.667 billion in the reporting period, hit by adverse currency moves. At constant exchange rates, revenues grew three percent.

Reckitt Benckiser’s top-selling brands include household cleaner Cillit Bang, Durex condoms and Nurofen/Nureflex pain relief tablets.

In morning deals, Reckitt shares jumped to the top of the risers board on the London stock market.

Advertisement. Scroll to continue reading.

The group’s share price gained 2.96 percent to 5,220 pence on London’s FTSE 100 index of top companies, which was down 0.04 percent at 6,789.15 points.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...