Reckitt Benckiser Group, the consumer-goods company behind popular brands such as Dettol, Harpic, and Durex, announced its financial results for the first half of the year. Despite a rise in revenue, the company experienced a decrease in pretax profit due to slipping volumes and increased operating expenses. However, Reckitt remains confident in its revenue growth expectations for the full year.
Financial Highlights
- Pretax profit for the six months amounted to £1.64 billion, compared to £1.69 billion in the same period last year.
- Prices/mix saw a significant increase of 10.4%, while volumes fell by 4.4%.
- Adjusted operating profit rose to £1.77 billion from £1.765 billion.
Future Outlook
Reckitt Benckiser Group maintains its guidance for revenue growth in 2023, expecting a range of 3% to 5% on a like-for-like basis. The company also revised its adjusted operating margin guidance, projecting it to slightly surpass 2022 levels, excluding a one-off benefit related to U.S. nutrition.
Revenue Performance
Revenue for the first half of the year reached £7.45 billion, up from £6.89 billion in the prior year. In the second quarter alone, revenue amounted to £3.53 billion, compared to £3.46 billion in the same period last year.
Dividend Announcement
The board of Reckitt Benckiser Group declared an interim dividend of 76.6 pence per share. This marks an increase from the previous year's dividend of 73 pence.
Reckitt Benckiser Group CEO, Nicandro Durante, expressed confidence in the company's momentum despite challenging market conditions and uncertainty. Durante emphasized the importance of strengthening their execution, optimizing their cost base, and delivering improved returns to shareholders.
