New Delhi, Apr 29 (PTI) British FMCG major Reckitt’s revenue from developing markets increased 5.7 per cent, helped by higher growth in India and China, among other areas, in the first quarter this year.
While its toilet cleaner Harpic continued to register “strong growth” in the Indian market, helping the brands to report a ‘high-single-digit’ rise on a global scale, Reckitt said in the trading updates for Q1 2022.
Reckitt’s total net revenue in the first quarter was 3,424 million British Pounds, with a 5.6 per cent growth on a like-for-like (LFL) basis.
“Growth has been broad-based across the business, with brands less sensitive to Covid dynamics, representing around 70 per cent of the portfolio, growing high-single digits,” said Reckitt, which owns popular brands, including – Dettol, Durex, Lysol, Mortein and Vanish.
In its developing market category, under which India comes, Reckitt’s Q1 net revenue grew to 1,162 million British Pounds.
“Developing markets Q1 revenue grew 5.7 per cent on an LFL basis, driven by Latin America, India and Greater China,” said Reckitt, earlier known as RB Plc.
Reckitt’s Hygiene net revenue declined 9 per cent to 1,465 million British Pounds, with a 12.8 per cent fall in volume, primarily reflecting the reduction in Lysol volumes, it added.
Vanish net revenue grew in the mid-single-digit with growth driven by reduced confinements of consumers versus the prior year. “Harpic grew high-single-digits, with particularly strong growth in India, its largest market, driven by increased distribution and product upgrades,” it said.
Its pest business delivered low-single-digits growth despite a weak season in India and Latin America, it added.
Its health net revenue grew 20.6 per cent in the quarter to 1,402 million British Pounds.
“Dettol net revenue declined in the quarter, as it laps tough comparators, but continues to stabilise well above 2019 levels,” it added.
Chief Executive Officer Laxman Narasimhan said Reckitt has made a strong start to the year across all its business units and geographies despite a challenging operating environment.
“Investments we have made in brand building, innovation, and execution, have resulted in broad-based market share gains. These, coupled with pricing and revenue management actions, stand us in good stead to maintain this positive momentum,” he said.
Over the outlook for 2021, Reckitt said it now “expects LFL net revenue growth towards the upper end of our guidance of +1-4 per cent.
“Despite significant cost inflation, we expect adjusted operating margins in line with prior year and current market expectations,” it said. PTI KRH BAL
