Revenues rise at health and hygiene giant

Health, hygiene and home produce company, Reckitt Benckiser Group (RB), has seen its like-for-like revenue grow by £3.4bn in the first quarter of 2022, despite tough trading conditions.

The Hull-based business reported continued broad-based growth and market share momentum across all its business units and geographies and it expects like-for-like net revenue growth towards the upper end of its guidance of +1-4%.

It said that despite “significant” cost inflation, the company forecasts adjusted operating margins in-line with prior year and current market expectations.

Laxman Narasimhan, chief executive officer, said: “We have made a strong start to the year across all our business units and geographies despite a challenging operating environment.

“Investments we have made in brand building, innovation, and execution, have resulted in broad-based market share gains.

The positive performance follows the Hull-based business reporting robust figures for the 2021 financial year with a revenue of £13.2bn, as a result of a performance the business attributed to growth in its Hygiene operations, particularly in North America.

Looking ahead the RB noted it was repositioning its portfolio towards growth following the £240m sale of Dermicool and E45 which completed on 25 March and 1 April respectively.

Addressing the future Narasimhan added: “As we look to the balance of the year, the operating environment remains highly unpredictable. We are well placed to address these market dynamics.

“Given our strong start, we expect to deliver LFL net revenue growth at the upper end of our guidance for the year. We expect adjusted operating margins to be in-line with both the prior year and current market expectations, whilst continuing to invest in the long-term growth of our brands.”

Speaking of the “unpredictable environment” RB updated on its work to transfer ownership of its Russian business to what it says may be “a third party” or its “local employees”.  The move followed the stopping of all all advertising, promotion and sponsorship and freezing of any capital investments in the country in the wake of the ongoing Russian Ukranian conflict. The business noted it will do its “utmost” to ensure ongoing employment and is committed to “paying monthly salaries and benefits throughout the transition and until the end of 2022”.

In 2021 Ukraine and Russia combined represented around 3% net revenue and adjusted operating profit for the Group.