Reckitt Benckiser 1Q Revenue Rose Ahead of Views; Taps Kris Licht as CEO -- Update

By Michael Susin

Reckitt Benckiser Group PLC said Wednesday that its first-quarter revenue rose, supported by a broad-based growth across its businesses, and said it has appointed its Health business' president Kris Licht as Chief Executive Officer to succeed Nicandro Durante.

The consumer-goods company--which houses Dettol, Harpic and Durex among its brands--said revenue for the quarter was of 3.92 billion pounds ($4.86 billion), compared with GBP3.42 billion the same period a year ago as prices/mix was up 12.4%, while volumes fell 4.5%.

Revenue was forecast at GBP3.73 billion, according to a company-provided consensus.

Health and nutrition units sales on a like-for-like basis grew 12.5% and 11.9%, respectively, while hygiene sales rose 2.0%.

The company said that, despite starting 2023 strongly, it continues to expect more challenging competitive dynamics in its U.S. Nutrition business in future quarters.

Therefore, it guided for 2023 like-for-like revenue growth of 3% to 5%, including the continued effect of U.S. Nutrition business performance for last year. The company previously expected growth of mid-single digits.

Adjusted operating margin--which strips out exceptional and other one-off items--continues to be expected to be in line with or slightly above 2022 levels.

The company also backed its medium-term views, with adjusted operating profit targeted to grow ahead of revenue growth, achieving mid-20s margins by the mid-2020s.

Reckitt added that Kris Licht will become CEO designate as of May 1 and begin the transition into the role, taking over by the end of 2023.

Mr. Licht has served as president of Reckitt's Health business and as Chief Customer Officer since July 2020, and joined the company from PepsiCo Inc., where he held a variety of senior operational and strategic leadership positions, the company added.

Nicandro Durante will stay with Reckitt up to December 2023 to ensure a smooth transition, it added.

Write to Michael Susin at [e-mail]

(END) Dow Jones Newswires

April 26, 2023 03:24 ET (07:24 GMT)

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