Reckitt: Consumer goods giant upgrades outlook
Reckitt Benckiser has upgraded its expected revenue for its core brands this year, following the implementation of a significant simplification drive last year.
The FTSE 100 giant now expects like for like net revenue growth to above be above four per cent in ‘Core Reckitt’ brands – which include Dettol, Nurofen and Lysol – this year, up from three to four per cent.
Last year, Reckitt announced that it would focus on these ‘Powerbrands’ and sell off home care brands it no longer considers ‘core’, such as Cillit Bang, water softener Calgon, and air freshener Air Wick.
Earlier in July, the consumer goods giant announced the sale of its Essential Home business to private equity investor Advent International for $4.8bn (£3.6bn), with Reckitt retaining a 30 per cent minority stake.
Its essential home business shrank 6.5 per cent in the first half of the financial year, while its ‘core’ products grew 4.2 per cent.
Overall sales grew 1.5 per cent like for like, with operating profit up 1.8 per cent to £1.7bn.
CEO Kris Licht said it was a “strong first half performance”.
“[It] demonstrates the strength of our Powerbrands and the positive impact of the strategy we launched a year ago,” Licht said.
“We have taken a significant step to unlocking value with the announced divestment of Essential Home. Our new operating structure has sharpened our focus, delivering improved execution with continued market share gains and volume momentum.
“We delivered excellent growth in Emerging Markets and navigated a challenging consumer environment in our Developed Markets.
“While there is still much work to do, the journey to fundamentally reshape Reckitt into a more efficient, world-class health and hygiene company is well underway and reflecting that we are upgrading our life for like net revenue guidance for 2025,” he said.