Revenues climb at health and hygiene group, despite supply chain challenges
Health, hygiene and home produce company, Reckitt Benckiser Group, (Reckitt) has seen its net revenues climb to £6.9bn for the six months ended 30 June 2022. (30 June 2021: £6.6bn).
The business made a pre-tax profit of £1.7bn (30 June 2021: £1.9bn loss). Hull-based Reckitt says it now expects to achieve like for like net revenue growth of 5-8%.
However, it notes the supply chain environment in H1 continues to be challenging, both in terms of logistical availability and certain raw material constraints.
Laxman Narasimhan, chief executive officer, said: “We have delivered an excellent first half performance in 2022.
“Innovation and improved in-market execution are driving sustained, broad-based revenue growth and market share momentum across our portfolio.
“Our brands less sensitive to the impact of Covid are growing ahead of our mid-single digit target, whilst our disinfection brands are performing as expected, well above pre-pandemic levels.
“The actions we have taken to broaden the shoulders of our Lysol and Dettol franchises, combined with our innovation and penetration building initiatives have built a significantly larger, sustainable base from which we will grow.”
He added the business’s productivity programme has delivered over £370m of savings in the first half, well ahead of ingoing expectations.
This, combined with favourable product mix and pricing, accompanied by one-off and short-term benefits, has Reckitt to deliver adjusted operating profit growth in H1 well above net revenue growth.
He said despite tough conditions, the company is confident about the rest of the year, and is already delivering sustainable mid-single digit net revenue growth.