(Alliance News) - Reckitt Benckiser Group PLC on Thursday posted a double-digit first quarter revenue rise amid higher sales of hygiene and health products as a result of the virus pandemic, with the Dettol maker even nudging its 2020 outlook higher.
Reckitt said its "2020 performance is now expected to be better than original expectations" but conceded the "outlook for the balance of 2020 remains uncertain".
Total Reckitt sales climbed 12% to GBP3.54 billion in the quarter to March 31. On a like-for-like basis, sales were 13% higher.
The largest sales rise came from over-the-counter health products. These jumped by about a third to GBP618 million.
It helped the FTSE 100 company to a 13% sales hike in the Health unit to GBP2.19 billion.
In Hygiene, sales jumped 11% to GBP1.36 billion.
The "unfolding health crisis", led to shifts in consumer spending patterns, as many stocked up on goods now, in fear of shortages further down the line.
"The unfolding health crisis is an unprecedented situation for our global community and our thoughts are with those most affected, either on the front-line or dealing with the domestic and societal impacts of Covid-19," Reckitt said.
"RB is uniquely positioned to help build healthier communities with a portfolio that includes not only leading brands such as Dettol and Lysol, which break the chain of infection, but also Mucinex, Lemsip, Durex, Nurofen and Strepsils, as well as our Nutrition portfolio."
Last Friday, Reckitt warned that under "no circumstance" should disinfectants be injected or consumed, following comments made by Donald Trump. The US president suffered a backlash after suggesting it would be "interesting to check" whether a disinfectant injection could help combat coronavirus.
Although expecting a better 2020 than initially anticipated, Reckitt warned operating costs willl be higher, "particularly in our supply chain, as we keep our people safe, mitigate disruptions and serve the needs of our consumers".
Shares in the company were 4.3% higher at 6,680.00 pence each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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