Reckitt Benckiser's 1Q Hygiene Growth Offset Weak Health Performance
28 Abril 2021 - 04:13AM
Dow Jones News
By Matteo Castia
Reckitt Benckiser Group PLC said Wednesday that net revenue in
the first quarter slightly fell despite strong results from its
hygiene unit amid the coronavirus pandemic.
The consumer-goods company --which houses Dettol, Harpic and
Durex among its brands-- said first-quarter net revenue fell 1.1%
on the year, but rose 4.1% on a like-for-like basis. Total revenue
in the period was 3.51 billion pounds ($4.88 billion).
The hygiene division continued to progress and generated net
revenue growth of 21% year-on-year, or 29% on a like-for-like
basis, led by very strong demand and white space expansion for
Lysol, with double-digit growth in Finish, Air Wick and across most
regions. Revenue in the first quarter for the hygiene division was
GBP1.64 billion.
"Demand for Lysol and Dettol continues to be strong as consumers
remain vigilant to the spread of the virus," the company said.
However, net revenue from both the health and nutrition
businesses was in decline, falling 16% and 12% on the year
respectively, or 13% and 7.4% respectively on a like-for-like
basis.
First-quarter revenue for the health business and the nutrition
division came in at GBP1.12 billion and GBP742 million,
respectively.
"An exceptionally weak cough, cold and flu season during the
quarter, with incidences estimated to be down by around 90%, has
resulted in a significant reduction in demand for a number of our
OTC brands such as Mucinex, Nurofen and Strepsils, as well as
Airborne, our immune support brand," Reckitt Benckiser said.
The company said it expects business conditions to improve for
its health division, as the easing of restrictions, the return to
schools and the overall relaxation of social distancing is likely
to drive a stronger cough season in 2021 and 2022, boosting demand
for its immune support products.
Similarly, looser stay-at-home policies are likely to generate
an improvement in the sexual wellbeing unit, it said.
The company said it expects like-for-like revenue growth for the
remainder of 2021 to be flat to 2%, and that it remains on track to
achieve its medium-term goals, with anticipated mid-single digit
revenue growth.
Write to Matteo Castia at matteo.castia@dowjones.com
(END) Dow Jones Newswires
April 28, 2021 02:58 ET (06:58 GMT)
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