Dettol maker Reckitt Benckiser has continued to flourish throughout the pandemic, as the company today reported a 20 per cent hike in cleaning product sales during the third quarter.
The FTSE 100 company, which also owns brands such as Nurofen, Cillit Bang and Durex, reported a 13 per cent jump in overall sales between July and September, lifting revenue 9.5 per cent to £3.5bn for the quarter.
The group said the strong performance was mainly driven by increased demand for disinfectants during the pandemic, with sales of Dettol-branded products up more than 50 per cent year on year.
Like-for-like hygiene sales hiked almost 20 per cent over the quarter to £1.49bn, while strong demand for Durex products and cold medicines helped boost sales in its health division 12.6 per cent.
The company said it now expects “low double-digit” net revenue growth for the year compared to its previous estimate of “high single-digit” growth, sending its shares up 2.5 per cent in morning trading to 7,302p.
“The strong momentum in the first half has continued in the third quarter… 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,” said chief executive Laxman Narasimhan.
“Growth has been underpinned by better customer service levels and an improved supply chain performance, together with strong momentum in e-commerce.
“In meeting the significant challenges of Covid-19, we have shown that we are becoming a stronger and more agile business.”
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: “Our pursuit of cleanliness during the pandemic has been hugely beneficial for the group, and the signs are that the crisis is leading to a longer term behaviour shift with consumers demanding reassurance that workplaces, shops and public transport are germ free.
“The company has sold into 19 new markets in 2020 alone and now has upgraded revenue growth to be in the low double digits for the year, compared to previous forecasts of high single digits.”
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