Robust trading at health and hygiene business
Hull-based listed health, hygiene and home produce company Reckitt Benckiser Group (RB), has reported Group like-for-like revenues of £3.5bn in quarter three, a growth of 13.3%.
Year-to-date like-for like revenues are £10.4bn, a growth of 12.4%, with the business now predicting its 2020 like-for-like net revenue is expected to grow by “low double digits”, compared to a previous forecast of “high single digit”.
RB says it has seen improved penetration for its hygiene products and a strong market share performance in Hygiene and Health, with Dettol and Lysol directly sold in 19 new markets in 2020.
Its e-Commerce sales increased by over 45% in Q3 and over 50% for the year-to-date, and these are estimated to comprise about 12% of year-to-date group net revenue.
The company’s review notes: “The pandemic has heightened the societal importance of hygiene, seen increasingly as the foundation for health.
“Demand for our category-leading disinfectant products has been exceptional in recent months, with increased penetration and new consumers demonstrating a preference for trusted heritage brands driving growth.
“As a result, we expect structurally higher levels of demand to persist longer term as new consumer cleaning and sanitation habits become engrained.”
Laxman Narasimhan, RB chief executive officer, said: “Our plan to rejuvenate sustainable growth at RB is gaining momentum, and thanks to the exceptional efforts of the RB team, we are beginning to see the positive impact that the transformation is having on the business.
“The strong momentum in the first half has continued in Q3 and we are on track to deliver low double digit like-for-like net revenue growth for the full year.
“Our performance has been led by an increase in Hygiene and Health volumes, led by our market-leading disinfectant brands – Dettol, Lysol, Sagrotan and Napisan.
“Growth has been underpinned by better customer service levels and an improved supply chain performance, together with strong momentum in eCommerce.
“While the revenue performance in Nutrition improved in the quarter, we remain fully focused on addressing the headwinds, such as Hong Kong, and taking the actions necessary to deliver a sustained improvement.
“With a world-class portfolio of hygiene, health and nutrition brands and a clear purpose – to protect, heal and nurture in the relentless pursuit of a cleaner and healthier world – we are uniquely placed to help tackle the challenges the world is facing.
“Our plan to invest over £2bn over three years is on track, supported by our expanded productivity programme which has delivered savings of £300m so far this year.”
