Reckitt Benckiser Group Plc (LON:RKT)’s third quarter like-for-like (LFL) revenue rose 3.3%, with net revenue reaching £3.3bn. Trading has been better than Reckitt expected.
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Growth came from a balance between volume and price increases, while LFLs were up in all divisions and geographies, with North America the strongest region.
Full year guidance has been upgraded, with revenue expected to grow 1-3%. Despite ongoing cost inflation, margin guidance remains unchanged.
The shares were up 5% following the announcement.
Reckitt Benckiser Sees Improvement In Q3 Sales
Matt Britzman, Equity Analyst at Hargreaves Lansdown:
“Increased demand for cold and flu remedies gave sales a kick in the right direction in the third quarter, which contributed to better than expected results and prompted management to raise revenue guidance for the full year.
Margin guidance remained unchanged, and with revenue expectations up, this suggests costs are expected to keep rising into the fourth quarter. So far, the group has been able to raise prices without a material impact on sales volumes. It’s a fine balancing act that Reckitt executed well last quarter.
News that Dettol volumes, whilst normalising, are still significantly above 2019 levels suggest increased hygiene awareness isn’t a trend that’s going anywhere soon. Positive news for the group, and with the sale of the underperforming Chinese Infant Child Nutrition business now behind them, the outlook is starting to look brighter.”
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