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

- Link: https://www.directorstalkinterviews.com/reckitt-benckiser-group-plc-q1-saw-a-slow-start-to-the-year/412773660
- Published: 2019-05-02T07:36:51+01:00
- Author: Charlotte Edwards

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

  |

Q1

 

  |  
 |   |

£m

  |

LFL^(1)

 

  |

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.”

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