Reckitt Benckiser Group (LON:RB.), today announced results for Q8 2018 trading update.
|
|
Q3 |
YTD 2018
|
|||||
|
|
£m |
LFL1 |
Reported |
£m |
Pro-forma1
|
LFL1 |
Reported
|
|
IFCN |
659 |
-6% |
-8% |
2,100 |
+3% |
-5% |
n/m |
|
Rest of Health |
1,232 |
+4% |
0% |
3,594 |
+2% |
+2% |
-3% |
|
Total Health
|
1,891 |
0% |
-3% |
5,694 |
+3% |
+1% |
+25% |
|
Hygiene Home
|
1,229 |
+4% |
0% |
3,564 |
+4% |
+4% |
-2% |
|
Total |
3,120 |
+2% |
-2% |
9,258 |
+3% |
+2% |
+13% |
Highlights
· LFL growth in Q3 of +2%. Continued momentum under RB 2.0, with growth in base Health and Hygiene Home businesses of +4% LFL. Total growth was negatively impacted by -2% (£70m) from a temporary manufacturing disruption at our European IFCN plant.
· LFL performance in Total Health was flat, comprising IFCN of -6% and Rest of Health of +4% driven by continued strong growth in OTC and improving trends in Wellness and Health Hygiene brands.
· LFL growth in Hygiene Home of +4%. Continued momentum with strong performances from Finish, Air Wick and Lysol in ENA and Harpic in DvM.
· We remain on track for the full year net revenue target of +14-15% (total constant), implying LFL revenue growth at the upper end of +2-3%.
Commenting on these results, Rakesh Kapoor, Chief Executive Officer of Reckitt Benckiser, said:
“Q3 was another quarter of progress, with continued momentum and growth under our new RB 2.0 organisational structure. Our base Health and Hygiene Home businesses each delivered +4% LFL growth in the quarter, against a backdrop of mixed market conditions, demonstrating the strength of our brands, innovation success and early signs of RB 2.0 benefits. Although encouraging, we remain focused on further improving our growth trajectory.
Our IFCN business delivered a strong performance in North America, with the launch of our recent innovation, Enfamil NeuroPro, and progress in new channels. We also remain firmly on track to deliver the medium-term targets we communicated at the time of the MJN acquisition.
The quarter was impacted by a temporary manufacturing disruption at our European IFCN plant. This affected sales to a number of markets, occurred during a period of unusually high market growth and before our new facilities in Australia were operational and able to diversify our supply chain. The disruption was resolved and supply restored before the end of the quarter, although we do expect some residual impact in Q4 and into 2019.
We have sufficient momentum and progress in our business to absorb this temporary manufacturing disruption. We therefore reiterate our 2018 target of +14-15% total net revenue growth at constant rates.”
