Reckitt Net Income Gains £7.446Bn in H1 with Dettol Single-digit Down
- Chaileedo Press
- Jul 26, 2023
- 2 min read
The Dettol declined by single digits year-over-year due to mixed performance across markets.
Today (July 26), Dettol's parent company, Reckitt, announced its second quarter and half-year financial results in 2023. The results show that its net income was £3.529 billion ($4.55 billion) in second quarter, up 4.1% year-on-year, while net income of half year was £7.446 million ($9.61 million), up 6% year-on-year. In the first half of the year, Reckitt achieved year-on-year growth across all of its business units and sales regions.
Reckitt said the business segments and profitability models delivered a strong performance in the first half, with the Group delivering year-on-year net growth of 6.0% as ongoing investment delivered returns, driving gross margin growth and increasing brand investment (c.£100m) on the back of its innovation program.
Specifically, the Hygiene segment achieved first half net sales of £3.057 billion ($3.9 billion), up 3.6% year-on-year. According to Reckitt, the launch of its innovative Ultimate Plus All-in-One product in Europe has been a good initial success. Other brands Lysol, Air Wick, and Vanish brands all contributed to growth.
In the Health segment, net sales in the first half of the year were £3.073 billion ($4 billion), up 8.8% year-on-year. The Dettol declined by single digits year-on-year due to mixed performance across markets. However, some market shares increased due to the launch of Dettol's Cool range of long-lasting anti-bacterial drops. Some Asian markets declined due to category weakness and specific market challenges. However, Reckitt expects performance to improve in the second half of the year.
By region, the business in Europe grew the most, up 9.7% year-on-year, with net sales of £2.464 billion ($3.2 billion). The performance in North America grew 6.5% year-on-year, with net sales of £2.5 billion ($3.2 billion) and other developing regions grew 2.2% year-on-year, with net sales of £2.482 million ($3.2 billion).
Reckitt said, "The strong first-half performance gives us confidence in our full year targets, despite some tough comparatives in our OTC portfolio and an expected tougher competitive environment in US Nutrition in H2. We look to the future with confidence under Kris Licht’s leadership. 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."
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