Reckitt Benkiser Group 1st Quarter Results 2022

Reckitt Benkiser Group plc 1st Quarter Results 2022

A Strong Start – Continued Confidence In The Full Year

1. Adjusted measures are defined on page 6
2. Our VMS portfolio is now reported within the Health Business Unit, as previously indicated.  The re-presentation of historical financial information reflecting this change is included in the Appendix to this release.

Highlights :

• Group like-for-like ('LFL') net revenue growth of 5.6%:Price/mix was +5.3% and volume +0.3%.  Continued broad-based growth and market share momentum across all Business Units and geographies, with 76% of our Core CMUs gaining or holding market share.
• 70% of the portfolio less sensitive to Covid dynamics grew high-single digits.   Excluding the positive impact from US IFCN, growth was mid-single digits.
• Hygiene LFL net revenue decline of 9.0% (3.9% growth ex-Lysol):Growth in Finish, Air Wick, Harpic and Vanish led by innovation and penetration building initiatives.  Lysol performed in line with expectations.
• Health LFL net revenue growth of 20.6%:Strong growth in OTC, VMS and our Intimate Wellness portfolio.  Dettol performed in line with expectations and is on track for low single digit growth in the year.
• Nutrition LFL net revenue growth of 20.4%:US IFCN grew over 30% with innovation and strong execution amidst temporary competitor supply issues. 
• Repositioning the portfolio towards higher growth:The sale of Dermicool and E45 completed on 25 March and 1 April, respectively.
• Outlook:
• Following a strong start to the year, we now expect LFL net revenue growth towards the upper end of our guidance of +1-4%.  Despite significant cost inflation, we expect adjusted operating margins in-line with prior year and current market expectations.   

Commenting on these results, 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.  These, coupled with pricing and revenue management actions, stand us in good stead to maintain this positive momentum.   

As we look to the balance of the year, the operating environment remains highly unpredictable.  We are well placed to address these market dynamics through the strength of our brands, our favourable product mix, our productivity program and the responsible pricing initiatives already undertaken, with scope to take further actions.  

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.”