Broad-based revenue growth at listed health and hygiene firm

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Health, hygiene and home produce company, Reckitt Benckiser Group, (RB) has recorded group revenues of £3.3bn in its 2021 third quarter results, a like for like growth of 3.3%.

Year-to-date group revenues are £9.9bn – a 3.6% like for like growth.

E-commerce like for lie net revenue grew 23% in the quarter, and now accounts for 12% of group net revenue.

Hull-based RB notes the trading backdrop is set to remain “dynamic” over the coming months.

Its outlook report states: “In addition to cost pressures, COVID continues to influence demand and buying patterns for our disinfection, and cold and flu relief products.

“However, 70% of our portfolio is less sensitive to COVID dynamics and growing at mid-single digits and we have pricing actions and productivity plans firmly in place.

“We therefore remain confident in delivering margin improvement in 2022 and we are on track to exit 2022 with mid-single digit LFL net revenue growth.”

Laxman Narasimhan, chief executive officer, said: “In September, we reiterated the building blocks which will see Reckitt return to mid-single digit revenue growth and mid 20s margins.

“There is more to be done, but today’s results are testament to our progress, with 3.3% LFL revenue growth building on the 15.3% growth of Q3 2020.

“We’ve delivered growth in each of our three Global Business Units and in each of our three geographic regions, with a balance of volume and price/mix across the portfolio.

“Nine of our ten largest brands are up double-digits on a two-year basis.

“Reflecting this strength, we now expect like-for-like net revenue growth for FY 2021 in the range of 1-3%.

“Despite significant cost pressures, the benefits of our pricing actions, mix and productivity programme, mean our margin guidance is unchanged, and we remain confident in our medium-term outlook.”

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