Reckitt Benckiser narrows sales target as Q3 sales grow

Consumer goods giant Reckitt Benckiser narrowed its full-year sales target on Wednesday as it posted a jump in third-quarter revenues despite "challenging" market conditions and pointed to strong demand for infant formula in the US.

Like-for-like revenues grew 7.4%, with Reckitt hailing continued broad-based growth and momentum.

LFL sales in the hygiene segment dipped 1.2%. However, excluding the Lysol disinfectant spray, sales were up 3.3%, led by Finish, Harpic, and Vanish. Reckitt said the volume declines in Lysol were expected due to tough comparatives.

In the health business, LFL sales were up 10.7%, led by over-the-counter brands such as Mucinex, Nurofen and Strepsils, and the company’s Intimate Wellness portfolio of Durex and KY.

LFL growth in nutrition was 24.7%. This was 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, the company said.

Reckitt narrowed the range of its LFL net revenue growth target for 2022 to between 6% and 8% from between 5% and 8% previously. The group said it is already delivering sustainable mid-single digit net revenue growth, and remains "firmly on track" to deliver its medium-term goal of mid-20s adjusted operating margins by the mid-2020s.

Chief executive Nicando Durante 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.

"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."