Reckitt Benckiser, the UK-based multinational consumer goods company behind brands including Dettol, Air Wick, and Lysol, has reported strong quarterly results, driven by a growing demand for cleaning and disinfectant products.
The firm saw group like-for-like (LFL) growth of 13.3% in the third quarter of 2020, with year-to-date growth of 12.4%. Hygiene saw LFL growth of 19.5%, driven by Lysol, Finish, and Air Wick, with double-digit growth in most markets. Health saw LFL growth of 12.6%, representing, in part, ongoing demand for Dettol.
The company reported four growth drivers: improved hygiene penetration; strong market share performance year-to-date in hygiene and health; Dettol and Lysol directly being sold in 19 new markets in 2020; and innovation-led growth in new spaces.
Laxman Narasimhan, CEO of Reckitt Benckiser (RB), said: “Our plan to rejuvenate sustainable growth at RB is gaining momentum, and thanks to the exceptional efforts of the RB team, we are beginning to see the positive impact that the transformation is having on the business.
“The strong momentum in the first half has continued in Q3 and we are on track to deliver low double-digit LFL net revenue growth for the full year.
“Our performance has been led by an increase in hygiene and health volumes, led by our market-leading disinfectant brands – Dettol, Lysol, Sagrotan and Napisan. Growth has been underpinned by better customer service levels and an improved supply chain performance, together with strong momentum in e-commerce.
“While the revenue performance in nutrition improved in the quarter, we remain fully focused on addressing the headwinds, such as Hong Kong, and taking the actions necessary to deliver a sustained improvement.
“With a world-class portfolio of hygiene, health, and nutrition brands, and a clear purpose – to protect, heal, and nurture in the relentless pursuit of a cleaner and healthier world – we are uniquely placed to help tackle the challenges the world is facing.
“Our plan to invest over £2 billion (€2.2 billion) over three years is on track, supported by our expanded productivity programme which has delivered savings of £300 million (€331 million) so far this year. We are also reinvesting our outperformance to capitalise on the strong demand for our products, particularly with Dettol and Lysol and through e-commerce and professional challenges.
“In meeting the significant challenges of COVID-19, we have shown that we are becoming a stronger and more agile business. We are well on the way towards completing the first phase of our strategic plan, to ‘stabilise and perform’, as part of our journey to deliver mid-single-digit revenue growth in the medium-term and mid-20s margins by the mid-2020s.
“Our improved execution and the investments in capability and growth will enable us to achieve our revenue growth target a year earlier than expected, and with greater certainty.”