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Q3 Results and Strategy update

Q3 Trading Update

Press release

Strategy Update

Press release

Strategy Update


Q3 Trading Update, CEO comment

Kris Licht Headshot

“Reckitt delivered a strong quarter with 6.7% LFL growth across our Hygiene and Health businesses and has maintained market leadership in our US nutrition business. We are firmly on track to deliver our full year targets, despite some tough prior year comparatives that we continue to face in our US Nutrition business and across our OTC portfolio in the fourth quarter.”

Kris Licht

Chief Executive Officer

Q3 highlights

Q3 Group LFL net revenue growth of +3.4%

Led by strong broad-based growth across our Hygiene and Health portfolio, which delivered a LFL growth +6.7% on a combined basis. This LFL growth was reduced by a (11.9%) decline in our Nutrition business, reflecting the rebasing of the US IFCN market following the shortage crisis in the prior year.

Growth was broad-based across OTC, Finish, Lysol and our Intimate Wellness portfolios. Within Nutrition, we continue to hold US IFCN market leadership and our brand Enfamil remains the Number One Trusted by Consumers and the Number One Recommended Infant Formula by Paediatricians in the US.

Volume declined (4.3%) on a group basis with improving trends in Hygiene throughout the period, resilient volume delivery in Health, offset by the expected declines in our Nutrition business. Volume declined (1.6%) for Hygiene and Health on a combined basis.

Price / mix grew +7.5% on a group basis, reflecting a combination of carry over pricing, new pricing behind our innovation programme and in markets where the inflationary environment is more pronounced.


Hygiene LFL net revenue growth of +8.1%. Broad-based growth across all core categories, driven by double digit growth in Finish and Vanish.

Health LFL net revenue growth of +5.4%. Growth driven by OTC and Intimate Wellness portfolios. Dettol and VMS were broadly stable.

Nutrition LFL net revenue decline of -11.9%. We maintain market leadership in the US but lap the temporary benefits from competitor supply issues in the prior year.


For 2023, we continue to target Group LFL net revenue growth of +3% to +5% in 2023, including the lapping of the US Nutrition impact in 2022.

We continue to expect adjusted operating margins to be slightly above 2022 levels when excluding the one-off benefit of circa 80bps in 2022 related to US Nutrition. Our guidance includes a significant increase in BEI to support an exciting innovation programme in 2023.

In the medium-term, as set out in our strategic update, we target sustainable mid-single digit LFL net revenue growth and adjusted operating profit growth to exceed net revenue growth1.

1 Previously, “we expect adjusted operating profit to grow ahead of net revenue growth, achieving mid-20s margins by the mid-2020s”.

Strategy Update Highlights

Reckitt is today a strong, well-invested business with a culture and purpose fit for the future.

  • We operate in attractive growth categories. Our portfolio of brands is excellent and positions us well to deliver sustainable mid-single digit like-for-like (LFL) net revenue growth over the medium term.
  • We will continue to invest in product superiority and to sharpen and improve the consistency of our in-market execution, and our cost base.
  • We see a clear runway for sustainable growth, with superior gross margins, and we will extend our productivity programme to focus on fixed costs to fuel both growth and earnings.
  • We are well positioned to grow adjusted operating profit ahead of net revenue in the medium term.
  • Our strong free cashflow generation and a healthy balance sheet enable us to announce the commencement of an enhanced shareholder returns programme:
  • Sustainable dividend growth (no change)
  • Commencing a share buyback programme. £1bn over the next 12 months, which will be launched imminently.

Strategy Update, CEO comment

Kris Licht Headshot

“Reckitt today is a strong, competitive, resilient business with an excellent portfolio of market-leading, high margin brands in growth categories. With our sector leading earnings model, a clear set of priorities to sharpen and improve our business, significant free cashflow generation, and a healthy balance sheet, we are now well positioned to deliver sustainable and leading TSR.”

Kris Licht

Chief Executive Officer

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