Reckitt has posted a strong third quarter trading update, with growth of 14 per cent.
Like-for-like revenues of the Hull-founded multinational health and hygiene operator were up 7.4 per cent. Sales so far in 2022 have now exceeded £10.6 billion for the firm behind household brands Dettol, Finish and Durex.
The company told how 70 per cent of the portfolio “less sensitive to Covid dynamics” grew in high angle digits, with health the star performer with an uplift of 10.7 per cent. It said there was “continued strong momentum led by over-the-counter brands of Mucinex, Nurofen and Strepsils, and our intimate wellness portfolio”.
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A temporary shortage of infant formula affecting competitors saw the nutrition segment spike too, with an increase of 24.7 per cent.
Nicandro Durante, presenting his first results as chief executive following Laxman Narasimhan’s return to the US with Starbucks, 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.”
Reckitt has narrowed the range of like-for-like revenue growth to between 6 per cent and 8 per cent following the results.
The company is also eliminating plastic from its Finish dishwashing products, with a saving of 2,000 tonnes - or 50 million one litre bottles - as it switches to innovative paper pouches., following a tie-up with Mondi.
It will launch in France next month, with 1,200 stores to stock in an exclusive trial with Carrefour ahead of wider roll-out.
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