Amid concerns over inflation and competition from cheaper supermarket brands, Reckitt’s sales performance has come as a welcome surprise. The company’s hygiene operation, which includes brands such as Lysol and Finish, experienced a 7.1% increase in sales, largely driven by higher volumes. The nutrition business, however, faced some headwinds, with sales declining by 9.9%. This was partly attributed to a decline in sales volumes and a boost in sales experienced by a major competitor in the previous year due to supply issues.
Despite the challenges faced by the nutrition business, Reckitt remains optimistic about its growth prospects. The company emphasized its strong portfolio of brands, ongoing investment in innovation, and commitment to value creation through share buybacks and increased cash returns to shareholders.
Reckitt’s shares climbed in early trading on Wednesday, reflecting investor confidence in the company’s ability to navigate the current economic challenges and deliver long-term growth. The company’s strong performance and reassurance on US litigation related to its premature baby formula business have boosted investor sentiment and support for Reckitt’s stock.
