3rd Quarter Results
MOMENTUM CONTINUES – ON TRACK TO DELIVER FULL YEAR TARGETS
| Q3 2022 | YTD 2022 | |||||
| Net revenue | £m | LFL1 | Reported | £m | LFL 1 | Reported |
| Hygiene | 1,527 | -1.2% | +5.4% | 4,406 | -4.5% | -1.6% |
| Health | 1,533 | +10.7% | +18.8% | 4,353 | +18.0% | +20.6% |
| Nutrition | 675 | +24.7% | +25.9% | 1,864 | +24.0% | +4.3% |
| Group2 | 3,735 | +7.4% | +14.0% | 10,623 | +8.2% | +7.6% |
1. Adjusted measures are defined on page 7
2. Group excluding IFCN China reported net revenue growth of 15.8% in Q3 and 11.8% in YTD
Q3 highlights:
· Group like-for-like (LFL) revenue growth of 7.4% . Price / mix improvements of 12.0% and volume decline of 4.6% (volume down around 1% excluding Lysol, as the category continues to normalise). Continued broad-based growth and momentum.
· Group reported net revenue growth of 14.0% : LFL growth of 7.4% benefitted from FX tailwinds of 8.5% and a net M&A impact of -1.9%.
· 70% of the portfolio less sensitive to Covid dynamics grew high-single digits (YTD grew low-double digits). Excluding the positive impact from US IFCN, growth was mid-single digits (YTD high-single-digits), driven by continued innovation, improved in-market execution and pricing across the portfolio.
· Hygiene LFL decline of 1.2%: Performance improves as the Lysol base continues to normalise. Hygiene grew 3.3% excluding Lysol, led by Finish, Harpic, and Vanish.
· Health LFL growth of 10.7% : Continued strong momentum, led by OTC brands of Mucinex, Nurofen and Strepsils, and our Intimate Wellness portfolio of Durex and KY.
· Nutrition LFL growth of 24.7% : Driven by mid-single digit growth in Developing Markets and over 40% growth in the US with strong execution amidst temporary infant formula shortages. Growth includes an estimated 20.3% benefit from temporary competitor supply issues.
Outlook:
· We are narrowing the range of our LFL net revenue growth target to +6% to +8% for 2022 (previously +5% to +8%). We continue to target growth in adjusted operating margins.
· We are already delivering sustainable mid-single digit net revenue growth, and remain firmly on track to deliver our medium-term goal of mid-20s adjusted operating margins by the mid-2020s.
Commenting on the results, Nicandro Durante, Chief Executive Officer, said:
“Reckitt delivered another quarter of broad-based growth amidst challenging market conditions, as we continue to innovate and improve on our in-market execution.
Since joining Reckitt in an executive capacity, I have spent time with our people and in our markets. It has been a delight to experience, first hand, the energy and passion of our teams.
We have an excellent portfolio of trusted, market-leading brands in high margin, high-growth categories and a strong culture of ownership and delivery. My priority is firmly focussed on continuing to execute on our strategic path, to deliver sustainable mid-single digit growth, and mid-20s adjusted operating margins by the mid-2020s.”