Boosted by strong price rises, Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) reported double-digit growth in operating profit and earnings per share and was in confident mood as it entered 2023.
Revenue rose 9.2% to £14.45bn in the year to 31 December 2022, helped by a 9.8% increase in price/mix, which strengthened to 12% in the fourth quarter, as sales volumes actually declined.
Operating profit jumped 16.8% to £3.44bn and EPS advanced 18.4% to 341.7p. Operating margins leapt to 23.8%, up 90 basis points (bps).
The owner of Disprin, Strepsils and Gaviscon said growth was broad-based and led by brands across the Auto Dishwash, Fabric Additives, OTC, Intimate Wellness, VMS and Nutrition categories.
Nutrition reported a 22.9% increase in net revenue and Health a 14.7% rise, but Hygiene saw a fall of 3.1%.
The full-year dividend was increased by 5% to 183.3p (2021: 174.6p), with the aim to deliver sustainable dividend growth in future years.
Looking ahead, the FTSE 100-listed firm is targeting like-for-like net revenue growth of mid-single digits for the group in 2023, excluding the 2.5% impact of the competitor supply disruption in the US Nutrition business in 2022.
The target includes a return to growth in its disinfection portfolio from a circa +40% larger base versus pre-pandemic levels.
“We expect adjusted operating margins to be in line with or slightly above 2022 levels when excluding the one-off benefit of circa 80bps in 2022 related to US Nutrition,” Reckitt said in a statement.
Chief executive Nicandro Durante said: “We enter 2023 as a strengthened business with enhanced financial, operational and brand resilience, and continued growth momentum.“