Reckitt Benckiser sales grew by 11.8% in 2020

Reckitt Benckiser (LON:RB) reported its highest ever full-year sales growth as the coronavirus pandemic caused a surge in demand for the company’s products. 

The consumer goods company, which sells Dettol and Lysol disinfectants, announced its sales grew by 11.8% to £14bn, with e-commerce sales growing by 56%. 

Covid-19 has heightened the importance of hygiene among the public pushing up demand for Reckitt Benkiser’s leading disinfectant brands. 

Reckitt Benkiser made an operating profit of £2.16bn, compared to a £1.95bn loss the year before. 

The consumer goods company announced a full year dividend of 174.6p, matching 2019’s shareholder payout. 

Reckitt Benckiser shares are up 1.54% to 6,056p at early morning trade on Wednesday. Following a spike in July 2020 at 7,960p per share, Reckitt Benckiser’s share price has since retreated.

This could raise a question mark over the Reckitt Benckiser’s prospects beyond a surge in demand for sanitation products during the pandemic. The FTSE 100 consumer group had a bumper first quarter of 2020 driven by a jump in sales of hygiene products.

Laxman Narasimhan, chief executive at Reckitt Benkiser, commented on the results while looking ahead to further growth opportunities in 2021.

“This past year we delivered a strong revenue performance with nearly £14bn of sales and +11.8% like-for-like growth. eCommerce sales grew by a record +56% and now account for around 12% of group net revenue.  We have made a strong start to implementing our new strategy and proved that we can adapt and successfully respond to rapidly changing market conditions. Our portfolio is clearly resilient – with or without COVID-19 – and we are building a stronger business for the future,” said Narasimhan. 

“Our category-leading germ protection/disinfection brands have all seen substantial market growth, with around 80% of our consumers expecting to retain many of their new improved habits post pandemic. We capitalised on these new behaviours with Dettol and Lysol entering 41 markets, with plans to enter a further 29 markets in 2021.”