R&D and innovation investments pay off for health and hygiene group
Hull-headquartered health, hygiene and home produce company, Reckitt Benckiser Group (Reckitt), has recorded like-for-like net revenue growth of £7.4bn, a rise of 6%, in its half year report today.
The group also reports an adjusted operating profit in H1 2023 of £1.8bn (H1 2022: £1.8bn), while capital investment to support Reckitt’s growth and margin ambitions was £189m.
Nicandro Durante, chief executive officer, said: “Reckitt’s strong first-half performance across our business units and through our earnings model reflects continued delivery from the investments we have made.
“We delivered like-for-like net revenue growth of +6.0%, drove gross margin expansion and increased brand investment (by around £100m) behind our innovation programme.
“Our investments in R&D and innovation are now delivering.
“Amidst a backdrop of challenging market conditions and uncertainty, the business has strong momentum, yet with an opportunity to further strengthen our execution, optimise our cost base, and deliver improved returns to shareholders.”
In its outlook statement, the group adds it is maintaining its group like-for-like net revenue growth target of +3% to +5% in 2023.
In the medium term, Reckitt says it expects its adjusted operating profit to grow ahead of net revenue growth, achieving a mid-20s margins by the mid-2020s.
And the group notes it is continuing the process aimed at transferring ownership of its Russian business, “which may include a transfer to a third party or to local employees.”
