Reckitt on track to deliver FY targets as Q1 LFL sales rise

24th Apr 2024 07:07

(Sharecast News) - Consumer goods giant Reckitt Benckiser said on Wednesday that it was on track to deliver its full-year revenue and profit targets as it posted a rise in first-quarter like-for-like net sales.

In an update for the three months to the end of March, the Dettol and Lysol maker said LFL net revenue grew 1.5% to £3.7bn, with a volume decline of 0.5% and price/mix growth of 2%.

The hygiene segment saw LFL net revenue growth of 7.1%, with broad-based volume growth across Finish, Lysol, Harpic and Vanish.

In the health unit, LFL net revenues rose 1%. Reckitt pointed to strong volume growth across Intimate Wellness, non-seasonal over-the-counter brands, VMS and Dettol. This was offset by the expected lapping of prior year retailer inventory rebuild in seasonal OTC products.

In nutrition, however, LFL net revenue fell 9.9%.

Reckitt reiterated its 2024 guidance for LFL net revenue growth of between 2% and 4% for the group. It also continues to expect mid-single-digit growth for the health and hygiene portfolios and a mid to high-single-digit decline for the nutrition business.

Chief executive Kris Licht said: "We have delivered a good first quarter. Following a period of price-led growth, we are now returning to a more balanced contribution from price, mix and volume. We grew volumes in many of our powerbrands in the quarter, including Lysol, Dettol, Durex and Finish, as well as our non-seasonal OTC portfolio.

"In addition, we continue to benefit from carryover pricing and consumers trading up to our premium innovations.

"The net revenue performance in the quarter is in line with our expectations. Hygiene delivered broad-based growth. Health saw good growth across many brands, reduced by a tough comparator in our cold & flu OTC brands. Nutrition continues to normalise in the US as expected, and we have maintained our value market share leadership."

At 1045 BST, the shares were up 5.1% at 4,468p.