Health and hygiene products giant confident it can deliver full year targets
Hull-based health and hygiene group, Reckitt Benckiser, says it is on course to deliver its net revenue and profit targets for 2024 as it publishes a quarter three trading update today.
It has reported year-to-date group net revenue of £10.6bn, up by 0.4% on a like-for-like basis. Q3 like-for-like net revenue declined by 0.5% to £3.5bn.
In its main operating divisions of Hygiene and Health the group recorded like-for-like net revenue growth of 3.7% year-to-date (Q3: 2.1%) and 1.9% year-to-date (Q3: 3.2%) respectively. While in Nutrition Reckitt Benckiser reported like-for-like net revenue decline of 11.6% year-to-date (Q3: 17.4% decline).
Kris Licht, chief executive officer, said: “Our quarter three delivery is in line with our guidance at the half year.
“Health delivered sequential improvement in the quarter and Hygiene delivered a solid quarter of growth despite a more competitive market backdrop in developed markets.
“Nutrition was impacted by the Mount Vernon tornado in July, which impacted sales to customers in the quarter, but to a lesser extent than we initially expected. Our categories are resilient, our brands are strong and we are now seeing a more balanced algorithm for growth.
“We are on track to deliver our net revenue and profit targets for 2024, with increased investment across our more competitive categories and markets, improving market share performance across our Health and Hygiene portfolios, and a normalising market environment in US Nutrition.”
On a geographic basis growth for the group in quarter three was driven by developing markets across Greater China, Latin America, South and South East Asia, as well as Europe.
In its outlook statement, the Reckitt Benckiser adds it continues to aim for full year like-for-like net revenue growth of 1% to 3%.
Reckitt Benckiser says it is making progress on its previously confirmed strategy to sharpen its portfolio of products and simplify the business.
