Reckitt’s net revenue increases 3.5% to £13.2bn

Reckitt has announced its full-year net revenues have come in “ahead of expectations” up +3.5% to £13.2bn and +17.4% on a two-year stacked basis.

The firm said this has been led by a “strong performance”in hygiene and a recovery in health as it exited the year.

It also reported Q4 like-for-like net revenue growth of +3.3% with health (+17.5%) offsetting hygiene (-6.1%) lapping “tough” prior year comparators.

According to the firm, brands are “less sensitive” to Covid dynamics, representing 70% of the portfolio expanded, on average, by mid-single-digits in each quarter of 2021.

The firm said it also positioned itself in a good place for expansion, including the divestments of IFCN China and Scholl, the proposed disposal of E45, and the acquisition of Biofreeze. Approximately 9% of the portfolio was repositioned.

For 2022 Reckitt is targeting like-for-like net revenue increase of between 1-4%, expecting to exit 2022 with mid-single-digit like-for-like surge in net revenue and progress towards medium-term adjusted operating margin target in the mid-20s by the mid-20s.

Laxman Narasimhan, CEO, said: “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.

“The business is showing positive momentum with 62% of our core CMUs holding or gaining share, underpinned by the investments we have already made. We are therefore targeting both growth in LFL net revenue and an increase in adjusted operating margin in 2022, despite an unprecedented inflationary environment and ongoing uncertainties created by COVID.”

He added: “We have a unique portfolio of trusted, market-leading brands in structurally attractive categories with significant headroom for growth. This, combined with our progress to date, gives me confidence in both our near term and medium-term prospects.”