I for one remain compelled by the Nurofen and Durex manufacturer’s long-term earnings outlook, however, and consider current trading problems in some of its regions as nothing more than a few bumps in the road.

I plan to delve into Reckitt Benckiser’s brilliant investment potential in some detail. But before I do, I would like to look another London-quoted share making the headlines this week with fresh profits news of its own, namely food ingredients and nutrition specialist Glanbia (LSE: GLB).

Earnings grow again

On Wednesday, the company announced that 2017 revenues had jumped 7% to €2.39bn, a result that powered pre-tax profit 2% higher to €229.7m.

Meanwhile, Glanbia saw pro-forma adjusted earnings per share rise 10.2% at constant currencies, the eighth successive year of double digit earnings expansion. However, news that the business expects growth on a comparable basis to slow to between 5% and 8% in 2018 sent investors scurrying for the exits (the foodie firm was last 6% lower from Tuesday’s close).

 City analysts had expected Glanbia to record an earnings rise of 9% in 2018 and to follow this with an 8% advance in 2019. But even if these figures undergo some downward adjustment, I believe the company remains a compelling growth pick for the years ahead.

You see, the Irish giant is taking steps to become, as it says, “one of world’s top performing nutrition companies.” And in keeping with this goal, Glanbia added that its focus in 2018 “will be on volume-driven revenue growth across [its] wholly-owned growth platforms of Glanbia Performance Nutrition and Glanbia Nutritional.”

The ingredients giant has invested heavily in brand development and product launches in recent years, while it has also forked out a fortune in boosting its plant and IT systems at both divisions, as well as building a new innovation centre at GPN. It’s also been busy building a presence in the nutritionals segment through targeted M&A and last year it bought Amazing Grass of the US and the Netherlands’ Body & Fit for a combined €168.2m.

Ongoing investment doesn’t come cheap but these vast near-term costs should provide the basis for Glanbia to make a significant splash in this fast-growing market. I believe a forward P/E ratio of 16 times is a compelling level at which to latch onto this exciting growth play.

In great health

Now for Reckitt Benckiser. Also trading outside the widely-accepted value territory of 15 times or below, the FTSE 100 business is dealing on a forward P/E ratio of 16.9 times. Like Glanbia, it’s also expected to generate earnings growth of 9% this year and 8% in 2019.

But in my opinion, the brilliant earnings visibility created by its raft of market-leading labels warrants this slight premium, as does Reckitt Benckiser’s sprawling presence across both developing and emerging markets.

With the acquisition of Mead Johnson helping it on its way to become a major player in the consumer healthcare segment (this division finally returned to growth at the back end of last year), I reckon the Footsie firm has everything to make investors a fortune in the years ahead.

The post Reckitt Benckiser Group plc isn’t the only growth stock you could retire on appeared first on The Twelfth Magpie.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Reckitt Benckiser. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Glanbia (LSE: GLB) moved modestly higher on the back of its latest trading details, the stock last up 1% from the mid-week close. But share picker appetite would no doubt have been stronger in the absence of the broader risk aversion currently sweeping world markets.

The food group continued to see revenues soar during January-June, it announced, the top line swelling 11.5% to €2.05bn. On a constant currency basis this was up 9.9% year-on-year.

As a result it saw EBITA soar 9.2% to €192.8m. The company advised that the sale of its 60% stake in Dairy Ireland and the division’s related assets last month had been classified as discontinued operations in the firm’s half-time numbers.

Chief executive Siobhán Talbot said: “Glanbia Nutritionals and Joint Ventures were the main drivers of growth in the first half and we believe second half earnings progression will also be driven by Glanbia Performance Nutrition where good organic growth is expected for the remainder of the year.”

Sales at Glanbia Nutritionals leapt 9% at stable exchange rates in the first half, while revenues at Joint Ventures and Associates increased 23.2% from the corresponding 2016 period.

And growing global demand for sports nutrition products also underpinned the strong first-half sales performance — the top line at Glanbia Performance Nutrition grew 5.4% in the period at constant currencies.

Talbot added that the Irish business remains on course to report pro-forma adjusted earnings per share growth of 7%-10% on a constant currency basis.

On the right path

The City certainly believes Glanbia is on course to keep earnings on an upward tilt, the company supported by an improvement in dairy markets and robust demand across the business. As such, bottom line rises of 6% are chalked in for both 2017 and 2018 respectively, although today’s sunny update may prompt an upgrade of these forecasts.

While dealing on a forward P/E ratio of 18.9 times, I reckon the Kilkenny company is worthy of a slight premium.

Rest easy

InterContinental Hotels Group (LSE: IHG) is another stock expected to deliver chunky bottom-line growth in the near-term and beyond.

In 2017, the global hotelier is predicted to deliver an 18% earnings improvement, and to follow this up with a 6% advance next year. And given the prospect of further rises in the coming years, I reckon InterContinental is also a terrific pick regardless of its slightly-heady forward P/E reading of 22 times.

The Buckinghamshire business saw revenues at constant exchange rates continue to chug higher in the first half, up 4% year-on-year to $788m, it announced last week. This underpinned a 7% rise in underlying operating profit which clocked in at $365m.

While the business saw REVpar (or revenues per available room) rise 2.1% in the period, this slowed to 1.5% in the second quarter from 2.7% in the prior three months, thanks in no small part to the impact of a later Easter on its US hotels — REVpar here fell 0.4% during April-June.

However, I believe the broad strength of the economy Stateside should push revenues here higher again sooner rather than later. And with InterContinental also continuing to make progress in Europe and China, I think the business remains a great share for those seeking excellent long-term growth.

The post 2 growth shares that could help you beat the market appeared first on The Twelfth Magpie.

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Royston Wild has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.