23 October 2024
on track to deliver full year targets
| Q3 2024 | YTD 2024 | |||||
| Net revenue | £m | LFL1 | IFRS | £m | LFL1 | IFRS |
| Hygiene | 1,525 | +2.1% | -1.4% | 4,585 | +3.7% | -0.4% |
| Health | 1,476 | +3.2% | -0.4% | 4,417 | +1.9% | -3.0% |
| Nutrition | 454 | -17.4% | -20.5% | 1,620 | -11.6% | -14.1% |
| Group | 3,455 | -0.5% | -4.0% | 10,622 | +0.4% | -3.8% |
1. Adjusted measures are defined on page 7.
Trading Highlights:
| • | Like-for-like (LFL) net revenue growth of +0.4% YTD (Q3: -0.5%). Health and Hygiene growth of +2.8% YTD (Q3: +2.6%) offset by US Nutrition rebasing from historic competitor supply issue and impact of Mount Vernon tornado in July 2024. |
| • | Group reported net revenue decline of -3.8% YTD (Q3: -4.0%). LFL growth of +0.4% offset by FX headwinds of -3.9% and a net M&A impact of -0.3%. |
| • | Volume momentum continued in Hygiene (+0.9% YTD and +0.7% in Q3) and improved in Health (+0.2% YTD and +1.2% in Q3). |
| • | Market share growth improved sequentially across both Health and Hygiene portfolios. |
| • | Hygiene LFL net revenue growth of +3.7% YTD (Q3: +2.1%). Broad-based growth across Powerbrands during the year, with strong contributions from innovation platforms in Lysol and Finish, despite lapping significant launches last year, and a competitive market backdrop. |
| • | Health LFL net revenue growth of +1.9% YTD (Q3: +3.2%). Growth driven by Durex, Dettol, Gaviscon, Nurofen and VMS brands. Seasonal OTC brands declined by mid-single-digits YTD due to tough comparatives and a slow end to the cold and ‘flu season in H1. |
| • | Nutrition LFL net revenue decline of -11.6% YTD (Q3: -17.4%). Q3 trading performance was primarily impacted by around £100m of supply-related challenges from the Mount Vernon tornado in July, which reflects a better-than-expected recovery of inventories. |
| • | On track to deliver full year targets, with all businesses well placed to deliver strong LFL net revenue growth in Q4. |
Strategic Highlights:
| • | Refreshed Global Executive Committee is now operational and all senior leadership positions appointed. |
| • | New operating model and organisation structure developed and on track for January 2025 deployment. |
| • | Essential Home actions progressing at pace. Seasoned leadership team appointed and separation work underway. On track to exit by the end of 2025. |
| • | Continued progress on our current £1 billion Share Buy Back programme. As of 18 October 2024, a total of £321m of shares bought back since the current programme commenced on 26 July 2024. |
Commenting on the results, Kris Licht, Chief Executive Officer, said:
“Our Q3 delivery is in line with our guidance at the half year. Health delivered sequential improvement in the quarter and Hygiene delivered a solid quarter of growth despite a more competitive market backdrop in developed markets. Nutrition was impacted by the Mount Vernon tornado in July, which impacted sales to customers in the quarter, but to a lesser extent than we initially expected. Our categories are resilient, our brands are strong and we are now seeing a more balanced algorithm for growth.
We are on track to deliver our net revenue and profit targets for 2024, with increased investment across our more competitive categories and markets, improving market share performance across our Health and Hygiene portfolios, and a normalising market environment in US Nutrition.
We are moving at pace on the execution of reshaping Reckitt through sharpening our portfolio, simplifying the organisation and improving shareholder returns. I look forward to providing further details on our new operating model and future targets with our FY24 results update.”
CONFERENCE CALL DETAILS
We will be hosting a live Q&A session for analysts and investors at 08:30 (BST) on Wednesday 23 October 2024.
Please click on the link below to join the live audiocast:
Alternatively, dial in details are as follows:
| United Kingdom: | 0800 358 1035 |
| All other locations: | +44 20 3936 2999 |
| Participant access code: | 303073 |