25 October 2023
HYGIENE AND HEALTH STRONG GROWTH. NUTRITION REBASING
| Q3 2023 | YTD 2023 | |||||
| Net revenue | £m | LFL1 | Reported | £m | LFL1 | Reported |
| Hygiene | 1,547 | +8.1% | +1.3% | 4,604 | +5.1% | +4.5% |
| Health | 1,482 | +5.4% | -3.3% | 4,555 | +7.6% | +4.6% |
| Nutrition | 571 | -11.9% | -15.4% | 1,887 | -0.7% | +1.2% |
| Group | 3,600 | +3.4% | -3.6% | 11,046 | +5.1% | +4.0% |
1. Adjusted measures are defined on page 6.
Q3 Highlights:
· Like-for-like (LFL) net revenue growth of +3.4%, led by strong broad-based growth of +6.7% across Hygiene and Health combined. Nutrition maintains US market leadership but laps prior year competitor supply issue.
· Group reported net revenue decline of -3.6%. LFL growth of +3.4% offset by FX headwinds of -6.8% and a net M&A impact of -0.2%.
· Improving volume momentum in Hygiene and Health, offset by expected year-on-year rebasing in Nutrition. Group volume decline of -4.1%, with -1.6% for Hygiene and Health combined. Group price / mix was +7.5%.
· Hygiene LFL net revenue growth of +8.1%. Broad-based growth across all core categories, driven by double digit growth in Finish and Vanish.
· Health LFL net revenue growth of +5.4%. Growth driven by OTC and Intimate Wellness portfolios. Dettol and VMS were broadly stable.
· Nutrition LFL net revenue decline of -11.9%. We maintain market leadership in the US but lap the temporary benefits from competitor supply issues in the prior year.
Strategic Update:
· Strategic update announced (refer to separate RNS).
· Targeting sustained mid-single digit LFL net revenue growth and adjusted operating profit growth to exceed net revenue growth in the medium term.
· Commencing a share buyback programme. £1bn over the next 12 months, will commence imminently.
Commenting on the results, Kris Licht, Chief Executive Officer, said:
“Reckitt delivered a strong quarter with 6.7% LFL growth across our Hygiene and Health businesses and has maintained market leadership in our US nutrition business.
“We are firmly on track to deliver our full year targets, despite some tough prior year comparatives that we continue to face in our US Nutrition business and across our OTC portfolio in the fourth quarter.”
CONFERENCE CALL DETAILS
We will be hosting a live Q&A session for analysts and investors at 09:00 (BST) on Wednesday 25 October 2023.
Please click on the link below to join the live audiocast on the day:
https://www.reckitt.com/investors/results-and-presentations/.
Alternatively, dial in details are as follows:
| United Kingdom: | +44 20 4587 0498 |
| All other locations: | +44 800 358 1035 |
| Participant access code: | 564750 |