financetom
Business
financetom
/
Business
/
Reckitt beats like-for-like sales estimates, driven by Dettol, Lysol
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Reckitt beats like-for-like sales estimates, driven by Dettol, Lysol
Apr 24, 2024 12:48 AM

LONDON, April 24 (Reuters) - Consumer goods group

Reckitt's like-for-like sales growth beat estimates in

the first quarter as more people bought its Lysol, Dettol and

Finish cleaning products even as prices rose, it said in a

trading update on Wednesday.

The company also said it faces "contingent liabilities" - a

term used for those dependent on future events - from a product

liability suit filed against its Mead Johnson infant formula

business in the United States.

An Illinois jury in March ordered Mead Johnson to pay $60

million to the mother of a premature baby who died of an

intestinal disease after being fed the company's Enfamil baby

formula. Mead Johnson said in March it would appeal the verdict.

"It's a complex litigation. It's early stages," CEO Kris

Licht said in a call with journalists.

The company said it was on track to meet full-year revenue

and profit targets, led by mid single-digit growth across its

health and hygiene businesses.

"We could expect the share price to outperform peers today,

somewhat constrained by the ongoing litigation uncertainty,"

Jefferies analyst David Hayes said.

Reckitt's quarterly like-for-like net sales rose 1.5%,

against 0.9% growth expected by analysts in a poll by the

company.

"We continue to benefit from carryover pricing and consumers

trading up to our premium innovations," Licht said.

Consumer companies from Reckitt to Nestle have

invested heavily in product innovation to win back shoppers who

had turned to cheaper brands during the COVID-19 pandemic and

more recent cost-of-living crisis.

They hope improvements to existing products will allow them

to raise prices without taking a hit on sales volumes.

Reckitt's other products include Nurofen tablets, cold

remedy Lemsip and Durex condoms.

The company said first-quarter volumes rose 2.9% at the

company's hygiene business - its largest by revenue - but the

price/mix metric that shows how much its products sold for rose

by 4.2%.

Its overall price/mix ratio rose 2% while volumes declined

by 0.5%. Analysts had expected a 2.2% price/mix gain and volumes

to decrease by 3.2%.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Santander Brasil's net profit surges 75% in Q4
Santander Brasil's net profit surges 75% in Q4
Feb 5, 2025
SAO PAULO (Reuters) - Santander Brasil a subsidiary of Spain's Banco Santander, reported on Wednesday a 75% jump in its fourth-quarter net profit, surpassing market expectations on the back of better spreads and increased fees. The lender said in a securities filing that net profit totaled 3.85 billion reais ($668.62 million) in the October-December quarter, above the 3.72 billion forecast...
Japan Wage Data Is Latest Catalyst for Yen Buying, Says Mitsubishi UFG
Japan Wage Data Is Latest Catalyst for Yen Buying, Says Mitsubishi UFG
Feb 5, 2025
06:33 AM EST, 02/05/2025 (MT Newswires) -- The yen (JPY) is up 2.7% so far this year making it the top-performing G10 currency, said Mitsubishi UFG. The Bank of Japan hike in January continues to have an impact in shifting investor expectations on the outlook for BoJ policy this year, which is helping narrow rate spreads and fuel appetite for...
BRIEF-JD.Com Is Said To Revive Interest In Buying Germany's Ceconomy- Bloomberg News
BRIEF-JD.Com Is Said To Revive Interest In Buying Germany's Ceconomy- Bloomberg News
Feb 5, 2025
Feb 5 (Reuters) - * JD.COM IS SAID TO REVIVE INTEREST IN BUYING GERMANY'S CECONOMY- BLOOMBERG NEWS Source: https://tinyurl.com/7by533y9 ...
NCR Voyix Appoints James Kelly as Chief Executive
NCR Voyix Appoints James Kelly as Chief Executive
Feb 5, 2025
06:29 AM EST, 02/05/2025 (MT Newswires) -- NCR Voyix ( VYX ) said Wednesday it appointed Executive Chair James Kelly to succeed David Wilkinson as president and chief executive officer, effective immediately. As part of the leadership changes, Lead Independent Director Kevin Reddy has been appointed as non-executive chair. ...
Copyright 2023-2026 - www.financetom.com All Rights Reserved