Reckitt delivered a year of strong growth in net revenue, earnings, and free cash flow conversion amidst a continued challenging environment.
Our Hygiene GBU returned to growth in the quarter (+1.3%) due to further improved trends in Lysol, and mid-single digit growth in the rest of the portfolio. Health (+6.7%) saw strong growth in OTC brands, offset by weaker demand in China Intimate Wellness. Nutrition delivered another strong quarter (+19.4%) with strong demand in the US and the continued turn around in developing markets. On an IFRS basis net revenue grew by +14.0%.
Growth was broad-based and led by our market-leading brands across the Auto Dishwash, Fabric Additives, OTC, Intimate Wellness, VMS and Nutrition categories. The positive impact on net revenue from the US Nutrition competitor supply issue is approximately +2.5%. On an IFRS basis net revenue grew by +9.2%.
This includes two consecutive years of mid-single digit growth from 70% of the portfolio less sensitive to Covid dynamics. During the year, these brands grew high-single digits. Excluding the positive impact from US IFCN, growth was mid-single digits.
Excluding Lysol, the business delivered mid-single digit growth.Lysol saw improving trends throughout the year, and delivered net revenue growth of around +45% above pre-pandemic levels. On an IFRS basis net revenue grew by +0.8%.
Driven by a combination of strong demand and share gains in our OTC portfolio, and continued momentum in our Intimate Wellness and VMS brands with a stable performance in Germ Protection, which remains around +40% ahead of pre-pandemic levels. On an IFRS basis net revenue grew by +18.6%.
Driven by mid-single digit growth in our Developing Markets business and around +40% growth in the US with strong execution amidst temporary competitor supply issues. On an IFRS basis net revenue grew by +10.2%.
(+9.2% on a constant FX basis) driven by strong top line growth, productivity and positive product mix. Adjusted operating margin (excluding IFCN China) grew by +90bps to 23.8%. The benefit on adjusted operating profit in 2022 from the US Nutrition competitor supply issue is approximately +80bps. 2022 IFRS operating margin was 22.5%.
Driven by net revenue growth, operating margin expansion, and foreign exchange tailwinds. On an IFRS basis total diluted EPS was 324.7p.
Free cash flow generation of £2.0bn (2021: £1.3bn) and cash conversion of 83% (2021: 61%).
(2021: 174.6p), with the aim to deliver sustainable dividend growth in future years.
We target LFL net revenue growth of mid-single digits for the Group, excluding the lapping of a circa 2.5% impact of the competitor supply disruption in our US Nutrition business in 2022 (“US Nutrition impact”).
We expect adjusted operating margins to be in line with or slightly above 2022 levels when excluding the one-off benefit of circa 80bps in 2022 related to US Nutrition. Within our guidance we expect to significantly increase BEI to support an exciting innovation programme in 2023.
