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Reckitt Beats Quarterly Like-For-Like Sales Estimates

By Reuters
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Reckitt Beats Quarterly Like-For-Like Sales Estimates

Reckitt has forecast its full-year adjusted operating margins to be slightly above 2022 levels, after the British company beat quarterly like-for-like net revenue estimates, helped by its hygiene and health businesses.

Reckitt, the maker of Dettol and Lysol cleaning products, said its second-quarter like-for-like revenue rose 4.1% on a constant-currency basis, ahead of the 3.7% growth analysts had expected in a company-supplied poll.

The company retained its 2023 target range of 3% to 5% for group LFL net revenue growth and expects adjusted operating margins to be slightly above 2022 levels, excluding last year's one-off benefit of about 80 basis points related to an infant formula supply disruption in the U.S.

'Strong Performance'

"The strong first-half performance gives us confidence in our full-year targets, despite some tough comparatives in our OTC portfolio and an expected tougher competitive environment in US Nutrition in H2," chief executive Nicandro Durante said.

For the first half, Reckitt's like-for-like net revenue growth also beat analysts' expectations.

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During the same period last year, Reckitt's sales benefited from a baby formula shortage in the United States, after market leader Abbott Laboratories recalled dozens of brands.

The company on Wednesday raised its dividend to 76.6 pence for the first half, from 73 pence in the year-ago period.

'Deliver Improved Returns'

"Amidst a backdrop of challenging market conditions and uncertainty, the business has strong momentum, yet with an opportunity to further strengthen our execution, optimise our cost base, and deliver improved returns to shareholders," Durante added.

Durante is set to be succeeded by a new chief executive, Kris Licht at the end of the year, following a transition period.

Additional reporting by ESM

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