Reckitt Benckiser has released a robust set of third quarter sale figures that saw like-for-like revenue growth jump 3.3%.
Reckitt’s year-to-date sales rose 3.6% having recorded £9.8bn in sales.
“There’s a lot to like in this morning’s update from Reckitt Benckiser. There is a notable hike in sales forecasts, impressively, every division has outperformed expectations and the company has maintained margin guidance despite the inflationary pressures and supply chain issues which it, like all of its peer group are facing,” said AJ Bell investment director Russ Mould.
“This is testament both to the strength of its brands which have allowed the company to pass through price increases to its customers and to the ongoing transformation of the businesses under CEO Laxman Narasimhan.”
The group’s Helath division was a strong performer as cold and flu medicines bounced backed.
“In September, we reiterated the building blocks which will see Reckitt return to mid-single digit revenue growth and mid 20’s margins,” said Laxman Narasimhan, Chief Executive Officer of Reckitt Benckiser.
There is more to be done, but today’s results are testament to our progress, with 3.3% LFL revenue growth building on the 15.3% growth of Q3 2020. We’ve delivered growth in each of our three GBUs and in each of our three geographic regions, with a balance of volume and price/mix across the portfolio. Nine of our ten largest brands are up double-digits on a two-year basis.”
“Reflecting this strength, we now expect like-for-like net revenue growth for FY 2021 in the range of 1-3%. Despite significant cost pressures, the benefits of our pricing actions, mix and productivity programme, mean our margin guidance is unchanged, and we remain confident in our medium-term outlook.”