Reckitt’s strong first-half performance across our business units and through our earnings model reflects continued delivery from the investments we have made. We delivered like-for-like net revenue growth of +6.0%, drove gross margin expansion and increased brand investment (by around £100m) behind our innovation programme.
We delivered like-for-like net revenue growth of +6.0%, drove gross margin expansion and increased brand investment (by around £100m) behind our innovation programme.
Growth was broad-based across our Global Business Units (GBUs), with a strong innovation programme. On an IFRS basis net revenue grew by +8.1%.
Growth was driven by Finish, Harpic, Vanish and Air Wick, and underpinned by early success of innovation launches.
Growth was led by our OTC portfolio and Intimate Wellness brands with an improving performance in China. Dettol declined by mid-single digits with category decline and in-market challenges across certain Asian markets – we expect an improvement in H2.
Continued strong market share in North America and mid-single digit growth in LATAM, against the lapping of tough prior year comparatives due to the US competitor supply issue.
Productivity efficiencies and carry-over pricing drove gross margin expansion, and funded increased investment behind innovation launches.
Net revenue growth and positive impact from foreign exchange is offset by lower operating margins and a higher effective tax rate.
The increase of 5% is consistent with our aim to deliver sustainable dividend growth.
We maintain our Group LFL net revenue growth target of +3% to +5% in 2023 (including the lapping of the US Nutrition impact in 2022), and now expect adjusted operating margins to be slightly above 2022 levels (previously “in line with or slightly above 2022 levels”) when excluding the one-off benefit of circa 80bps in 2022 related to US Nutrition.
