A STRONG START TO THE YEAR. NEW CEO ANNOUNCED
| Q1 2023 | |||||
| £m | LFL1 | M&A | FX | Actual | |
| Hygiene | 1,591 | +2.0% | – | +6.6% | +8.6% |
| Health | 1,643 | +12.5% | -1.2% | +5.9% | +17.2% |
| Nutrition | 683 | +11.9% | – | +10.7% | +22.6% |
| Total net revenue | 3,917 | +7.9% | -0.5% | +7.0% | +14.4% |
1. Adjusted measures are defined on page 6.
Highlights:
· Group like-for-like (‘LFL’) net revenue growth of +7.9%: Broad-based growth across all Business Units and geographies. Price / mix was +12.4% benefitting from strong carry over pricing from H2 2022. Volumes declined by -4.5% with improving trends.
· Hygiene LFL net revenue growth of +2.0%: Strong growth in Finish, Harpic and Vanish led by innovation and penetration building initiatives. Lysol performed in line with expectations, with sequential improvement through the quarter, as it lapped the final quarter of tough Covid-related comparatives.
· Health LFL net revenue growth of +12.5%: Excellent performance across our OTC portfolio with +30% growth in the quarter. Intimate Wellness delivered mid-single digit growth. Dettol remains on track for growth in the year, despite a slight decline in the quarter.
· Nutrition LFL net revenue growth of +11.9%: Broad-based delivery with continued mid-single digit growth in developing markets and mid-teens growth in the US, due to restocking of retailer inventories and maintaining our market leading share position.
· Outlook: We now expect Group LFL net revenue growth of +3% to +5% for the year (including the lapping of the US Nutrition impact in 2022).
· Kris Licht to become CEO. Kris will become CEO-designate effective 1 May 2023 and will take over as CEO by the end of 2023.
Commenting on these results, Nicandro Durante, Chief Executive Officer, said:
“We have made a strong start to the year across each of our business units and geographies reflecting further delivery from the investments we have made. In particular, our innovation programme has seen good early success across multiple launches, including Air Wick Active Fresh and Air Wick Vibrant, Finish Ultimate Plus All-In-One, our Dettol long-lasting germ protection platform, and Durex Invisible . Further innovations are planned for the upcoming quarters.
I am encouraged to see improving volume and share trends across our Hygiene GBU. Lysol performed in line with expectations, and we continue to expect Lysol to return to growth from Q2 underpinned by improved distribution and innovation. Our OTC brands continue to perform well in a strong growth category, and our Enfa brands are maintaining their leading market share positions in the US. Europe delivered a strong quarter across Health and Hygiene and China is yet to show the full benefit of reopening.
Considering the strong start to the year, we are now targeting +3% to +5% Group LFL net revenue growth for the year, underpinned by our well supported and exciting innovation programme, a resilient supply chain and ongoing executional improvements.
We have announced today that Kris Licht, current President of our Health GBU, has been appointed as CEO designate and will succeed me as CEO. Having played a pivotal role in both the transformation strategy and the significant turnaround of our Health GBU over the last three years, Kris is the right leader to take Reckitt on the next stage of its exciting journey. I look forward to working with Kris to deliver a seamless and uninterrupted transition.”