LONDON (Reuters) - British consumer goods maker Reckitt Benckiser Group (L:RB) announced a cost-cutting plan on Wednesday to adapt to markets that have become more competitive in the face of economic uncertainty.
Reckitt, which spun off its pharmaceuticals business last year, said the new programme was designed to save 100 million to 150 million pounds per year by 2017 and would include some job cuts.
Chief Executive Officer Rakesh Kapoor said the plan would look at everything from how employees travel and communicate to how they buy stationary. For example, Kapoor said he will fly economy class on flights under six hours.
The company, which makes Mucinex cold remedies, Durex condoms and Dettol cleaners, announced the cost-cutting plan after reporting a four percent rise in like-for-like sales in 2014, when growth in emerging markets slowed.
"In 2015, we continue to expect tough market conditions," said Kapoor.
Reckitt predicted a similar increase in like-for-like sales in 2015 and "moderate to 'nice' operating margin expansion".
Reckitt shares were up 3.4 percent at 5,800 pence at 0946 GMT.
The consumer goods company said it expected to incur about 200 million pounds of costs associated with the cost-cutting project, which includes a geographic restructuring of some businesses.
Reckitt will combine operations in Russia and the former Soviet countries with its Europe and North America business and combine Latin America and Asia with the Middle East and Africa.
The firm also said adjusted net income rose four percent in 2014, with adjusted earnings of 230.5 pence per share.
Analysts said the results were ahead of expectations, thanks to cost saving initiatives and retailers in Russia stocking up in the fourth quarter ahead of price increases.
Still, with the shares trading at 23 times expected 2015 earnings, analysts said the results were not enough to warrant any upgrades.
