Reckitt beats sales estimates helped by higher prices, infant formula sales
Britain’s Reckitt Benckiser (RKT.L), maker of Dettol and Lysol cleaning products, on Wednesday marginally beat full-year like-for-like net revenue expectations, helped by higher prices and its nutrition and health businesses.
The company said it would target like-for-like net revenue growth of mid-single digits for 2023, excluding the substantial lift its 2022 sales received from the recall of a rival’s infant formula.
Abbott Laboratories (ABT.N) early last year recalled dozens of infant nutrition products in the United States after customers complained of infants contracting bacterial infections.
Reckitt, its biggest rival at the time, ramped up production to fill the supply gap left by Abbott, helping to drive full-year like-for-like net sales growth of about 23% in its nutrition business.
The impact from the shortage added about 17.5% to the unit’s growth, Reckitt said.
Overall, the price/mix for Reckitt’s products, which include Nurofen tablets, cold remedy Lemsip and Durex condoms, rose 9.8%, helping the company make up for a 2.2% decline in sales volumes due to its business in North America.
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