Michael Landymore, at Investec Securities, added: “Reckitt should be confident the market will greet its eventual move with enthusiasm.”The group said that its pipeline of new products helped to lift sales in its main markets of the UK and US, which offset the volatility in developing regions. Its product initiatives included a revamped Calgonit product for dishwashers and extensions to its range of surface care wipes, such as the Dettol rapid dry floor cleaner. It will launch a new version of Lemsip for the winter, which can be taken by dissolving it on the tongue rather than mixing it into a drink.Analysts said Reckitt still had work to do to reach its operating margin target of about 18 per cent after it rose to 15.8 per cent in the third quarter. The group is chasing the superior margins achieved by its US peers, such as Procter & Gamble and Colgate.

“Operational gearing will be just as important as cost cutting going forward,” David Hallam, at Williams de Broe, said.. Waterford Wedgwood, the Irish china and glass company, reported a 40 per cent increase in first-half operating profits yesterday despite difficult markets and said it was optimistic about further growth. The company said the improvement, on a slight dip in sales, was achieved by a radical restructuring since last year, which included 1,100 job losses with another 300 to come. Operating margins rose 2.8 percentage points to 8.6 per cent and stock levels fell by €40m, with a commitment to further reductions.Current trading is solid, the company said, with sales for September and October up 6 per cent on the same months last year.Sir Anthony O’Reilly, Waterford Wedgwood’s chairman, said: “We are optimistic that ongoing margin improvements, combined with the new energy we derive from fresh product introductions, new distribution and our recent acquisitions, will produce continued growth.”Waterford Wedgwood has moved to broaden its distribution, particularly in the United States, which accounts for half of group sales. It has expanded into speciality retailers such as Williams-Sonoma and value retailers such as JC Penney in order to reduce its reliance on department stores.The acquisitions of two mail order groups, Cash’s and Shannon, has given Waterford Wedgwood more than a million US addresses.In the crystal division sales fell 6.4 per cent in a difficult market while market share in the key US market was maintained at 40 per cent.

New product launches included a new range of wine glasses designed by John Rocha, which are aimed at younger customers.In ceramics, the weak German market held the division back with a 7 per cent fall in overall sales. But growth is expected to come from a new range of Kelly Hoppen giftware and Vera Wang designs for the bridal market. In cookware sales jumped 37 per cent led by the All-Clad American range.Group pre-tax profits almost quadrupled to €39m. Net debt fell by €55m to €402m, with interest cover of 4.5 times.