Reckitt reported better-than-expected Q3 results on Wednesday, mainly due to its strong performance in emerging markets, particularly China.
The British group, known for its consumer healthcare brands such as Strepsils, Gaviscon, and Nurofena, announced a 7% increase in LFL sales for the period from July to September, exceeding consensus estimates.
Its net sales came in at £3.61bn, while the consensus estimate was £3.57bn.
In a press release, the consumer goods manufacturer highlighted that its business in emerging markets, which now accounts for 42% of its total sales, grew by 15.5% LFL to £1.08bn, thanks in particular to double-digit growth in all its categories in China, from Dettol cleaning products to Durex condoms and Intima wipes.
The group also confirmed its targets for FY 2025, still anticipating LFL growth of between 3% and 4% this year, accompanied by further growth in its adjusted EPS.
These announcements were met with little enthusiasm on the London Stock Exchange, where Reckitt shares fell by around 0.3% on Wednesday morning, while the FTSE 100 index rose by 0.7%.
Reckitt Benckiser Group plc specializes in the production and marketing of household cleaning products. The group also produces and sells personal care products and OTC remedies. Net sales break down by product family as follows:
- hygiene and household cleaning products (43.3%): toilet and bathroom cleaning products (Cillit Bang and Harpic brands), disinfectants and surface cleaners (no. 1 worldwide in disinfectant cleaners; Dettol, Lysol and Veja brands), deodorants and anti-parasitics (no. 2 worldwide; Air Wick, Mortein and SBP brands), dishwashing products (no. 1 worldwide; decalcifying salts, anti-corrosion products, strippers, etc.; Calgonit and Finish brands), laundry detergents, fabric softeners and ironing aids (Vanish, Calgon and Woolite brands);
- OTC and health products (41.5%): antiseptic products (no. 1 worldwide; Dettol brand), OTC products (Gaviscon, Mucinex, Strepsils, Clearasil, etc.), intimate wellness products (Durex, K-Y and Queen V brands), vitamins, minerals and dietary supplements (Airborne, Move Free and Neuriva brands), analgesics (Nurofen brand), and personal care products (Veet brand);
- nutrition products (15.2%): primarily infant nutrition products (Enfamil, Enfagrow, Enfinitas and Nutramigen brands).
Net sales are distributed geographically as follows: the United Kingdom (6.1%), the United States (31.1%) and other (62.8%).
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