Shares in consumer goods group Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) jumped over 5% to 4,465p as first-quarter sales surprisingly rose on a like-for-like basis.
Sales volumes fell 0.5% but thanks to a favourable price mix, LFL sales growth came in at 1.5%, well above the consensus forecast for a decline of 0.9%.
Management reiterated its full-year guidance of like-for-like revenue growth between 2% and 4%, with adjusted operating profit “to grow ahead of net revenue growth”.
The Hygiene division, comprising brands such as Finish, Lysol, Harpic and Vanish, was the one segment to revenue growth, up 7.1%, offsetting Nutrition's fall of 9.9% - though this was ahead of the consensus forecast of a 14.5% decline.
“We continue to benefit from carryover pricing and consumers trading up to our premium innovations,” as chief executive Kris Licht put it.
Licht felt it was a “good" first quarter and said: “Following a period of price-led growth, we are now returning to a more balanced contribution from price, mix and volume.
“We grew volumes in many of our powerbrands in the quarter, including Lysol, Dettol, Durex and Finish, as well as our non-seasonal OTC portfolio. In addition, we continue to benefit from carryover pricing and consumers trading up to our premium innovations.”