Subsiding pandemic hits revenue for hygiene products from Reckitt Benkiser

Hygiene products took a hit for producer of health and nutrition products Reckitt Benckiser, as the firm recorded strong revenue growth elsewhere.

The UK-Dutch firm based in Slough reported like-foxlike growth of 7.4 per cent in the third quarter of the year, pulled up by a surge in nutrition and health products.

Known for producing items such as Dettol, Harpic and Durex, it reported £37.35bn in revenue.

With the subsiding of the pandemic, Reckitt reported that LFL revenue for hygiene products was down 1.2 per cent compared to Q3 last year, and 4.5 per cent for the year over-all.

It had a big boost in revenue for health products, up 10 per cent compared to Q3 last year and 20 per cent for the year overall, while nutrition items were up almost 28 per cent from 2021.

70 per cent of its portfolio which was not sensitive to coronavirus grew by single digits, while hygiene products such as Finish, Harpic, and Vanish were less in demand as the market started to “normalise” post-pandemic restrictions.

With covid restrictions now much more limited than last year, it said it was “narrowing the range” of its revenue growth target to 6-8 per cent, from 5-8 per cent.
 
“Reckitt delivered another quarter of broad-based growth amidst challenging market conditions”, said Nicandro Durante, Chief Executive Officer.

“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.”