Reckitt, a global consumer goods company, recently released its financial report for the fiscal year 2023. The Group’s net revenue amounted to £14.607 billion, showing a growth of +3.5% on a like-for-like (LFL) basis. This growth was primarily driven by price/mix improvements, although there was a volume decline of -4.3%.
Within Reckitt’s brand portfolio, the Hygiene brands experienced broad-based growth of 5.1%, with improving volume trends throughout the year. However, the Nutrition segment declined of 4.0% as the US market faced challenges related to the previous year’s competitor supply issue.
Breaking it down further, the Hygiene segment’s net revenue grew by 5.1% on a LFL basis, reaching £6.135 billion for the full year. This growth was driven by innovation-led pricing and favorable mix with 11.1% growth, partially offset by a 6% decline in volume. Notably, the volume trend significantly improved quarter by quarter throughout the year. All major brands within the Hygiene segment contributed to the positive LFL net revenue growth.
Moving to the Health segment, its net revenue grew by 5.0% like-for-like, totaling £6.062 billion for the full year. This growth resulted from price/mix improvements of 5.3% growth, partially offset by a slight volume decline of 0.3%. Dettol, a prominent brand within the Health segment, experienced a mid-single-digit decline throughout the year, with mixed performance across different markets.
While certain markets achieved growth and gained market share through innovations, such as Dettol Cool in India, Dettol Washing Machine Cleaner, and Dettol Laundry Pods in China, declines in the ASEAN region due to category weakness and specific challenges offset this growth. However, actions taken during the second half of the year improved the performance in Q4.
Kris Licht, Chief Executive Officer of Reckitt, commented on the results, expressing satisfaction with the company’s progress in 2023. Reckitt achieved a good trading performance in Health and Hygiene, successfully rebased Nutrition while maintaining market leadership in the US. The company’s innovation platforms demonstrated their ability to drive meaningful growth through premiumization, increased household penetration, and category creation.
Reckitt’s performance varied across regions. In North America, the company achieved £4.919 billion in net revenue, a modest increase of 0.8% year-on-year (YOY). The Hygiene brands experienced mid-single-digit growth, while the Health segment remained broadly stable. The US Nutrition business declined due to the comparison with the previous year’s competitor supply shortage. In Europe, net revenue reached £4.849 billion, representing a substantial growth of 8.2% YoY. This growth was broad-based across Western European markets and Turkey, with Finish and the OTC portfolio leading the way. Developing Markets also showed positive growth,with LFL net revenue increasing by +1.9% for the full year. China, India, and Latin America (LATAM) experienced good growth in both Q4 and the full year. However, the Middle East declined in both periods, while the ASEAN region faced specific in-market challenges but saw improved volume trends in Q4 due to pricing actions taken in key Dettol markets.
