Dettol-maker Reckitt Benckiser reports revenue boost
Dettol-maker Reckitt Benckiser beat analysts’ expectations today as it reported revenues grew to £13.2bn in 2021, building on the boom in demand for its products seen through the pandemic.
Revenues across the group rose 3.5 per cent to £13.2bn, pushed up by higher prices across the group and a strong growth in the firm’s hygiene division.
The firm said it was targeting a further price rise of between one and four per cent this year, but said it expected its profit margins to continue to widen despite rising price of commodities.
Bosses indicated that the group’s brands were now “less sensitive to covid dynamics” as 70 per cent of its product portfolio grew by single digits in every quarter of the year.
Chief executive Laxman Narasimhan said the firm was showing momentum and on track for sustained growth.
“Over the last two years, we’ve significantly strengthened our business. Our innovation pipeline is 50% larger, our brands are stronger and more relevant, and our ability to serve our customers and consumers is greatly improved,” he said.
“We’ve taken Reckitt’s strong performance-driven culture, with its unique sense of ownership, and are evolving it for the better. We’ve also been active in managing our portfolio, repositioning for faster growth.”
But performance across the group was dragged by the sluggish performance of IFCN China, which Reckitt offloaded in September.
Bosses said IFCN China led to a loss of £67m which reflected poor performance throughout the year and exit costs relating to the disposal of the business.