THE WHAT? Reckitt has reported a FY2021 net revenue rise of 3.5 percent, which saw a share price lift of 10 percent.
THE DETAILS The company beat expectations, with the solid performance led by Hygiene and a recovery in Health at the end of the year.
Like-for-like Q4 revenue grew 3.3 percent, with a 17.5 percent rise for Health offsetting a 6 percent drop for Hygiene.
According to a press release, “Brands less sensitive to COVID dynamics, representing c.70% of the portfolio grew, on average, by mid-single-digits in each quarter of 2021.”
THE WHY? Reckitt reported strong progress in repositioning its business towards higher growth, with key highlights including the divestments of IFCN China and Scholl, the proposed disposal of E45, and the acquisition of Biofreeze. Approximately 9 percent of the portfolio was repositioned.
Looking forward, the company is targeting like-for-like net revenue growth of between 1-4 percent.
Laxman Narasimhan, Chief Executive Officer, 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. We’ve taken Reckitt’s strong performance-driven culture, with its unique sense of ownership, and are evolving it for the better. We’ve also been active in managing our portfolio, repositioning for faster growth.”