Reckitt bullish on selling outlook as prices rise

LONDON (Reuters) – Britain’s Reckitt Benckiser said on Wednesday its full-year sales would be at the upper end of previous forecasts and reported better-than-expected quarterly sales, helped by the sharp rise in prices.

Reckitt and other consumer goods companies from Procter & Gamble to Nestlé are raising prices sharply this year, allowing them to pass on record increases in energy and supply chain costs to consumers. .

Higher prices, which are contributing to a global cost-of-living crisis, are weighing on sales volumes as many people switch to cheaper or private label products. But, so far, the drop in demand has been more than offset by price increases.

The maker of Dettol cleaning products and Durex condoms now expects like-for-like net sales to rise 6% to 8% from its previous estimate of a 5% to 8% increase, a- he declared.

Reckitt, whose products also include Lysol cleansers and Strepsils throat lozenges, said it continues to target adjusted operating margin growth.

The company’s third-quarter like-for-like revenue rose 7.4%, above the 6.1% growth that analysts had forecast in a survey provided by the company.

Sales volumes decreased by 4.6%. Excluding Lysol sales, which were boosted by Covid-19 this time last year, they were down 1%. Prices for the company’s products increased 12% in the quarter.

Net sales growth benefited from a temporary spike in demand for infant formula in the United States due to a temporary shortage, prompted by the recall of products by rival Abbott Laboratories in February.

Reckitt, which has delayed price increases in this category, said it estimates the benefit added about 3% to net revenue growth in the third quarter.

(Reporting by Richa Naidu, editing by Louise Heavens and Matt Scuffham)