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Reckitt Benckiser

Reckitt Benckiser Group PLC Q1 saw a slow start to the year

Reckitt Benckiser Group PLC (LON:RB) today announced Q1 2019 Trading Update.

Q1

 

£m

LFL1

 

FX

Reported

 

IFCN

758

+5%

+3%

+8%

OTC

470

-9%

0%

-9%

Other

707

0%

+1%

+1%

Total Health

 

1,935

0%

+1%

+1%

Hygiene Home

 

1,222

+3%

-1%

+2%

Total

3,157

+1%

0%

+1%

 

Highlights

· LFL growth in Q1 of +1%. Continuing momentum in Hygiene Home. Slow start in Health as expected.

· LFL performance in Total Health was flat. Progress in IFCN USA and China was offset by seasonal weakness in OTC and a mixed result from Other (Wellness and Health Hygiene) brands.

· LFL growth in Hygiene Home of +3%. Continued momentum with strong performances from Finish, Vanish and Harpic.

· We remain on track for the full year net revenue target of +3-4% LFL with growth to be H2 weighted.

· RB2.0 remains on track.

Commenting on these results, Rakesh Kapoor, Reckitt Benckiser Chief Executive Officer, said:

“As expected, Q1 saw a slow start to the year, especially in OTC. We expect to see improving growth in the remainder of the year, particularly in H2.

Our health business unit (BU) was impacted by the unusually weak cold and flu season across US and several European markets and associated retailer inventory movements. While our seasonal products declined, Nurofen and Gaviscon delivered good growth from a combination of recent innovations and quality base products. Our IFCN business delivered a good Q1 (+5%), with innovation led momentum continuing in the US and further progress in China.

E-commerce backed by strong investment, continues to perform well with 10% of net revenue coming from these faster growing channels in our Health BU.

Our Hygiene Home portfolio continues to perform strongly (+3%) from the executional focus of a dedicated business unit. Finish, Vanish, Harpic and Veja all performed well, driven by innovation-led growth. This more than offset some weakness in Air Wick and Lysol which faced tough comparators.

Restoring outperformance in our Health BU remains our top priority as we target innovation-led growth, invest and outperform in e-channels, invest behind the equities of our brands, and build a more resilient business.

RB2.0 remains fully on track and we reiterate our 2019 targets of +3-4% LFL net revenue growth and adjusted1 operating margin to be maintained.”