Dettol, Durex and other living essentials provider Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) flew to the top of the FTSE 100 risers list on Wednesday despite delivering a 4.5% fall in statutory revenues.
The secret sauce was organic sales growth (which strips out currency fluctuations and MA adjustments) of 1.5%, which Barclays analysts pointed out was “significantly better” than the 0.9% decrease forecast by City.
It was an “impressive beat”, said Barclays, “with every division doing better than consensus”. That even includes nutrition, which saw a 9% fall in sales.
Hygiene, comprising products such as Dettol, Lysol and Finish, “was the standout” according to Barclays, having exceeded sales guidance by 3%.
Barclays analysts gave Reckitt an overweight stock rating despite the broader consumer staples market outlook being neutral. The stock is expected to climb to 6,000p over the next 12 months, suggesting a 35% upside to current prices.