Consumer goods giant Reckitt, makers of brands including Dettol, Strepsils and Durex, is tackling soaring fuel and raw material costs by lifting its prices sharply, states a report today (27), revealing latest figures of the quarter, where the household brands maker increased prices by 9.7 percent.
According to figures, Reckitt Benckiser reported revenue growth of 11.9 percent, ahead of expectations for 6.8 percent and raised its full-year 2022 sales guidance to between 5 percent and 8 percent.
The company’s nutrition division, which includes leading baby formula brand Enfamil has also boosted revenues by up to 40 percent so far this year. The maker’s core disinfection brands have been performing as expected and well above pre-pandemic levels and that sales in its health portfolio, which also includes Nurofen painkillers and Mucinex cold medicine, had leaped 24.2 percent as consumers become more conscious of their own health and wellbeing after the challenges presented since the pandemic outbreak in early 2020.
While leading disinfectant Dettol had sustained revenue growth of 40 percent against pre-pandemic levels during the second quarter, sister brand Lysol was down by around 30 percent from Covid peaks as some retailers had chosen to not re-order stock.
Matt Britzman, equity analyst at Hargreaves Lansdown told The Guardian that Reckitt’s performance is impressive (although customers won’t be impressed with higher bills at the checkout.)
“That’s testament to the defensive nature of Reckitt’s portfolio, cleaning and hygiene products are hardly going to be the first things left off shopping lists when wallets are stretched.
“Performance from key brands Dettol and Lysol continue to support the argument that increased hygiene awareness is here to stay. Sales may be down from last year’s astronomical highs, but both products look to be rebasing well ahead of pre-pandemic levels,” Britzman said.
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