Reckitt Benckiser revenues grow in first half

(Sharecast News) - Reckitt Benckiser posted a jump in first-half like-for-like net revenue on Wednesday, driven by solid performances across its portfolios.

The company - which makes Dettol, Lysol, and Nurofen, among other things - said first-half LFL net revenue was up 6% to £7.4bn. Revenue in the hygiene and health segments rose 3.6% and 8.8% respectively, while the nutrition segment saw a 5.3% increase.

Hygiene revenue was driven by Finish, Harpic, Vanish and Air Wick, while health revenue was led by the company's over-the-counter portfolio and intimate wellness brands, with an improving performance in China.

In nutrition, Reckitt said there was continued strong market share in North America and mid-single digit growth in Latin America.

First-half pre-tax profit dipped to £1.64bn from £1.69bn a year earlier.

For the second quarter, LFL net revenue rose 4.1% at constant currency to £3.5bn. The hygiene and health businesses saw growth of 5.5% and 4.9%, respectively, but revenue in the nutrition segment fell 0.9%.

Reckitt maintained its group LFL net revenue growth target of between 3% and 5% for 2023, but said it now expects adjusted operating margins to be slightly above prior-year levels, when excluding the one-off benefit of around 80 basis points in 2022 related to US nutrition.

Chief executive Nicandro Durante said: "Reckitt's strong first-half performance across our business units and through our earnings model reflects continued delivery from the investments we have made. We delivered like-for-like net revenue growth of +6.0%, drove gross margin expansion and increased brand investment (by around £100m) behind our innovation programme.

"The strong first-half performance gives us confidence in our full year targets, despite some tough comparatives in our OTC portfolio and an expected tougher competitive environment in US Nutrition in H2.

"We look to the future with confidence under Kris Licht's leadership. Amidst a backdrop of challenging market conditions and uncertainty, the business has strong momentum, yet with an opportunity to further strengthen our execution, optimise our cost base, and deliver improved returns to shareholders."