Stronger business model boosts performance at health and hygiene group

Hull-based Reckitt Benckiser Group (RB) has reported robust revenues for the 2021 financial year, with its performance driven by strong growth in its Hygiene operations, particularly in North America.

The listed health, hygiene and home produce company recorded Group net revenue of £13.2bn in 2021, (2020: £13.9bn) a rise of 3.5% on a like-for-like basis.

eCommerce net revenue grew by 17% in 2021 and now accounts for 12% of Group net revenue. The business made a pre-tax loss of £260m (2020: £1.9bn pre-tax profit).

Laxman Narasimhan, chief executive officer, said: “Our journey to rejuvenate sustainable growth is well on track as evidenced by strong LFL growth of 3.5% in 2021, building on the outstanding growth in 2020.

“Over the last two years, we’ve significantly strengthened our business. Our innovation pipeline is 50% larger, our brands are stronger and more relevant, and our ability to serve our customers and consumers is greatly improved.

“We’ve taken Reckitt’s strong performance-driven culture, with its unique sense of ownership, and are evolving it for the better. We’ve also been active in managing our portfolio, repositioning for faster growth.”

RB says during the year, COVID-19 continued to impact its net revenue. However, around 70% of its portfolio, representing brands less sensitive to the pandemic, experienced mid-single digit growth.

The remaining 30% of the Group’s portfolio – which includes Lysol, Dettol and cold and flu brands (Mucinex, Strepsils and Lemsip) – was more volatile, reflecting fluctuations in COVID-19 related demand.

During 2021, the Group disposed of both its IFCN China business and Scholl and announced the sale of E45, expected to complete in the second quarter of 2022. It also acquired Biofreeze – a US-based, double digit net revenue growth, topical analgesic business.

For 2022, RB says it is targeting like-for-like net revenue growth of between one and 4%.