20th Oct 2020 08:29
(Alliance News) - Reckitt Benckiser Group PLC on Tuesday said continued growth in disinfection brands such as Dettol, Lysol, Sagrotan and Napisan boosted third-quarter sales, and the company upgraded its annual revenue projections following strong growth in the first nine months of 2020.
Share in the FTSE 100-listed company were up 1.5% at 7,310.00 pence each in London on Tuesday morning.
The Slough, Berkshire-based consumer health and hygiene products maker expects 2020 like-for-like net revenue growth to now be in "low double digits" versus its previous forecast of "high single digit" revenue growth. Other aspects of 2020 guidance were kept unchanged.
In the third quarter, Reckitt's total sales climbed 6.3% to GBP3.51 billion, or 13% on a like-for-like basis. Year-to-date sales were up 9.4% at GBP10.42 billion, up 12.4% on like-for-like basis.
Total Hygiene quarterly sales alone were 12% higher at GBP1.49 billion, jumping 20% like-for-like, driven by Lysol, Finish and Air Wick, with double-digit growth in most markets.
Health sales rose 6.9% to GBP1.22 billion, or 12% like-for-like, due to an ongoing strong demand for Dettol and improved sales trends in the Durex condom brand.
Reckitt Benckiser said consumer demand for disinfectants continued to drive strong demand for Dettol, up over 50% in the third quarter, with material share gains in most major markets.
"Following a more challenging first half of the year, relaxations of social distancing regulations resulted in improved demand for our sexual well-being products, including Durex, which saw double-digit growth in revenue," Reckitt said. "This has been particularly pronounced in markets where the rate of pandemic infection has materially improved."
The Nutrition business saw 1.8% drop in reported sales to GBP806 million for the quarter. On a like-for-like basis, sales were up 4.1% on improved infant formula performance and continued strong growth for Airborne dietary supplements.
Chief Executive Officer Laxman Narasimhan said: "Our plan to rejuvenate sustainable growth at RB is gaining momentum, and thanks to the exceptional efforts of the RB team, we are beginning to see the positive impact that the transformation is having on the business. The strong momentum in the first half has continued in third quarter and we are on track to deliver low double digit like-for-like net revenue growth for the full year.
"Our performance has been led by an increase in Hygiene and Health volumes, led by our market-leading disinfectant brands - Dettol, Lysol, Sagrotan and Napisan. Growth has been underpinned by better customer service levels and an improved supply chain performance, together with strong momentum in e-commerce."
By Tapan Panchal; [email protected]
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