Seeking new opportunities
Our journey to rejuvenate sustainable growth is well on track. In February 2020, we set out our strategy and outlined our medium-term financial targets. Our objective is to rebuild like-for-like revenue growth to the mid-single-digit range, and to deliver adjusted operating margins in the mid-20s by the mid-2020s.
Addressing four of the world’s largest problems
Our strategy recognises that Reckitt plays a significant role in solving four of the world’s largest problems.
How can hygiene be the foundation for health? How do we enable consumers to self-care at a time when health systems are under massive pressure? How do we support intimate wellness and eradicate the menace of sexually transmitted diseases? How do we provide enhanced nutrition for infants and for the increasing number of seniors in society? And as we do this, we capitalise on the broad and rising impact of digital and sustainability.
The four largest problems
Hygiene as a foundation of health
Growing consumer awareness of the importance of hygiene and its connection to health
Government healthcare cost pressures and increased autonomy are elevating the importance of self-care solutions
Supporting intimate wellness
Maintaining sexual health and protecting young people in a challenging era
Providing enhanced nutrition
Supporting the growing demand for specialised infant and adult nutrition products
Transforming consumer behaviour and purchasing decisions, affecting what people buy and how they buy it
Not only about doing the right thing, it is increasingly a commercial imperative
Financial3.5 % LFL net revenue growth1
2021: £13,234m (2020: £13,993m)
Strategic62 % Category Market Units (CMUs) holding or gaining market share1
Sustainability29.3 % revenue from more sustainable products excluding IFCN1,4
- Adjusted and other non-GAAP measures, definitions and terms are defined on page 81 of our Annual Report and Accounts
- Pipeline value represents the increased revenue opportunity in 2022 compared to 2021
- Based on the Advantage Group 2021 survey of retailers. 20ppts increase in markets rated top-tier, from 26% in 2020 to 46% in 2021
- Calculated for 12 months ending 30 September 2021
Progress against our strategy
Throughout 2021, we have made good progress against our six strategic imperatives. These are our areas of focus which support us in returning the business to sustainable growth.
Grow brands and innovate. Investing firmly behind our brands to drive equity and improve the product offering for consumers.
Drive superior execution. Investing in capability centres for commercial excellence – sales outperformance, marketing excellence, eRB and medical sales.
Invest in capabilities. Investments in centralised areas such as supply chain, R&D and digital to strengthen the core of our business, supporting the three GBUs.
Increase productivity. Embedding programmes to enhance effectiveness and efficiency in the company and to fund investment.
Embed sustainability. Incorporating sustainability throughout our value chain and across our business.
Actively manage the portfolio. Moving the company to higher growth and addressing structural challenges.
Global Business Unit overview
Hygiene Net Revenue2021
Adjusted Operating Profit£1,401 m
Adjusted Operating Profit Margin23.7 %
Health Net Revenue2021
Adjusted Operating Profit£1,187 m
Adjusted Operating Profit Margin25.5 %
Nutrition Net Revenue2021
Adjusted Operating Profit£289 m
Adjusted Operating Profit Margin10.8 %
Time to turn words into actions
The COP26 summit in Glasgow was a pivotal moment in our collective fight against climate change. Reckitt came on board as the event’s official hygiene partner. Through our Dettol brand, we were entrusted with keeping 30,000+ delegates from over 190 countries safe from COVID-19.
A key enabler for sustainable growth
As a business, we work to solve some of the world’s largest problems. Through research and development, science and partnership, we make products that people have trusted for generations. We earn the continuing loyalty and trust of our consumers with differentiated products that offer superior solutions to meet their evolving needs.
Strategic transformation in the digital arena
The pandemic has driven a step-change in consumer behaviour, altering what people buy and how they buy it. Our employees’ ways of working are changing, and supply chains are less predictable. This, combined with ongoing developments in technology and marketing techniques, drives the need for enhanced end-to-end digital capabilities, and means the digital transformation of Reckitt is one of our most important opportunities.
Managing global supply
In our highly connected society, change can be rapid, radical and unpredictable. The global pandemic exposed the vulnerability of supply chains built on just-in-time, diversified and globalised models. We found out that, not just factories, but entire regions could halt production at a moment’s notice, with profound consequences for businesses on the other side of the world.