SLOUGH (dpa-AFX) - Reckitt Benckiser Group PLC (RBGPF.PK, RB.L) reported that group net revenue grew by 5.6% on a Like-for-like basis in the first-quarter of 2022 with volume growth of 0.3% and price / mix improvements of 5.3%.
Volume was impacted by the decline in Lysol and the temporary benefit in US IFCN. Excluding these, volumes remained strong, growing by around 7%. On a reported basis, quarterly net revenue declined 2.3% to 3.42 billion pounds.
Hygiene net revenue declined 9.0% on a LFL basis to 1.465 billion pounds. Volume declined 12.8%, primarily reflecting the reduction in Lysol volumes. Price / mix improved by 3.8%.
Health net revenue grew 20.6% on a LFL basis in the quarter to 1.40 billion pounds. It reflected volume growth of 15.5% and price / mix improvements of 5.1%.
Nutrition net revenue grew 20.4% on a LFL basis to 557 million pounds. It reflected volume growth of 8.9% and price / mix improvements of 11.5%. Included within the price / mix benefit is a short-term benefit in the US of additional 'WIC' sales for which Reckitt will not incur rebate claims from the Government. This is due to temporary competitor supply issues.
The company now expects LFL net revenue growth towards the upper end of guidance of +1-4% for year. Despite significant cost inflation, it expects adjusted operating margins in-line with prior year and current market expectations.
The company said it is on track to meet medium-term goals of mid-single digit revenue growth and adjusted operating profit margin of mid-20s by the mid-2020s.
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