Reckitt Benckiser 1st Half Pretax Profit Fell Despite Price Growth; Backs Revenue Guidance

By Joe Hoppe

Reckitt Benckiser Group said Wednesday that pretax profit for the first half of the year slipped despite a rise in revenue, as volumes slipped and operating expenses rose, and backed its revenue growth expectations for the full year.

The consumer-goods company--which houses Dettol, Harpic and Durex among its brands--posted a pretax profit of 1.64 billion pounds ($2.12 billion) for the six months compared with a profit of GBP1.69 billion in the year-earlier period. Prices/mix was up 10.4%, while volumes fell 4.4%.

Adjusted operating profit rose to GBP1.77 billion, from GBP1.765 billion.

Reckitt backed guidance for 2023 revenue growth on a like-for-like basis in the range of 3% to 5%. It raised guidance for its adjusted operating margin to be slightly ahead of 2022 levels from prior guidance of it being flat, when excluding a one-off benefit related to U.S. nutrition.

Revenue rose to GBP7.45 billion from GBP6.89 billion the prior year. Meanwhile, revenue for the second quarter was GBP3.53 billion, compared with GBP3.46 billion for the second quarter a year before.

The board declared an interim dividend of 76.6 pence a share, up from 73 pence last year.

"Amidst a backdrop of challenging market conditions and uncertainty, the business has strong momentum, yet with an opportunity to further strengthen our execution, optimise our cost base, and deliver improved returns to shareholders," Chief Executive Officer Nicandro Durante said.

Write to Joe Hoppe at [e-mail]

(END) Dow Jones Newswires

July 26, 2023 02:41 ET (06:41 GMT)

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