Our Q1 Trading Update for 2023

Press release

Nicandro Durante, Reckitt CEO, stands with his arms crossed

We have made a strong start to the year across each of our business units and geographies reflecting further delivery from the investments we have made. In particular, our innovation programme has seen good early success across multiple launches, including Air Wick Active Fresh and Air Wick Vibrant, Finish Ultimate Plus All-In-One, our Dettol long-lasting germ protection platform, and Durex Invisible. Further innovations are planned for the upcoming quarters.

Nicandro Durante

Chief Executive Officer

Q1 highlights

Group like-for-like (‘LFL’) net revenue growth of +7.9%

Broad-based growth across all Business Units and geographies. Price / mix was +12.4% benefitting from strong carry over pricing from H2 2022. Volumes declined by -4.5% with improving trends.

Highlights

Hygiene LFL net revenue growth of +2.0%

Strong growth in Finish, Harpic and Vanish led by innovation and penetration building initiatives. Lysol performed in line with expectations, with sequential improvement through the quarter, as it lapped the final quarter of tough Covid-related comparatives.

Health LFL net revenue growth of +12.5%

Excellent performance across our OTC portfolio with +30% growth in the quarter. Intimate Wellness delivered mid-single digit growth. Dettol remains on track for growth in the year, despite a slight decline in the quarter.

Nutrition LFL net revenue growth of +11.9%

Broad-based delivery with continued mid-single digit growth in developing markets and mid-teens growth in the US, due to restocking of retailer inventories and maintaining our market leading share position.

Outlook:

We now expect Group LFL net revenue growth of +3% to +5% for the year (including the lapping of the US Nutrition impact in 2022).

Kris Licht to become CEO.

Kris will become CEO-designate effective 1 May 2023 and will take over as CEO by the end of 2023

"Considering the strong start to the year, we are now targeting +3% to +5% Group LFL net revenue growth for the year, underpinned by our well supported and exciting innovation programme, a resilient supply chain and ongoing executional improvements."

Nicandro Durante

Chief Executive Officer

Outlook

We have made a strong start across all our GBUs. We continue to expect more challenging competitive dynamics in our US Nutrition business in future quarters. We therefore target Group LFL net revenue growth of +3% to +5% in 2023 (including the lapping of the US Nutrition impact in 2022).

We continue to 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.

In the medium-term, as previously guided, we expect adjusted operating profit to grow ahead of net revenue growth, achieving mid-20s margins by the mid-2020s.