1st Mar 2023 09:36
(Alliance News) - Reckitt Benckiser Group PLC on Wednesday reported a rise in full-year revenue and a swing to profit, as it lifted its dividend by 5.0%.
The consumer goods company said net revenue grew 9.2% to GBP14.45 billion in 2022 from GBP13.23 billion in 2021. In the fourth quarter ended December 31, net revenue was GBP3.83 billion.
According to company-compiled consensus, Reckitt's fourth-quarter revenue was expected to reach GBP4.11 billion. For the whole of 2022, it was forecast to rise 11% to GBP14.73 billion.
Like-for-like net revenue growth was 7.6% in line with expectations, with a decline in the Hygiene division offset by strong growth in Health and Nutrition.
Hygiene life-for-like net revenue declined by 3.1%; while Health like-for-like net revenue grew by 15% and Nutrition like-for-like revenue grew by 23%.
It swung to a pretax profit of GBP3.07 billion from a loss of GBP260 million. Net income from continuing operations amounted to GBP2.36 billion, compared to a loss of GBP52 million in 2021.
IFRS operating profit amounted to GBP3.25 billion from a loss of GBP804 million in 2021, which included a pretax loss of GBP3.4 million "in relation to the strategic review and disposal of IFCN China," the company explained.
Reckitt raised its annual dividend by 5.0% to 183.3 pence per share from 174.6p the year prior.
Looking ahead, it targets like-for-like net revenue growth in the mid-single digits, excluding the US nutrition impact. Reckitt also expects adjusted operating margins to be in line with or slightly above 2022 levels.
"We enter 2023 as a strengthened business with enhanced financial, operational and brand resilience, and continued growth momentum," said Chief Executive Officer Nicandro Durante.
Shares were up 0.4% at 5,782.00 pence each on Wednesday morning in London.
By Xindi Wei, Alliance News reporter
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