Reckitt Benckiser PLC said sales this year will be at the upper end of its forecasts as booming healthcare sales offset the drop-off in disinfectants as Covid concerns ease.
Laxman Narasimhan, chief executive, added that while the outlook for the year remained 'highly unpredictable', the Dettol, Durex and Lysol maker was holding margins in spite of significant cost inflation.
“We are well placed to address these market dynamics through the strength of our brands, our favourable product mix, our productivity program and the responsible pricing initiatives already undertaken, with scope to take further actions,“ he said.
Sales in the three months to the end of March 2022 rose by 5.6% on a like-for-like basis to £3.42bn, led by more than 20% jumps in the health and nutrition divisions.
Nutrition was boosted by the problems one of its competitors in baby food is having in the US, said Reckitt, while in health OTC medicines, vitamins and supplements and intimate wellness all did well.
Reckitt had predicted revenue would rise by 1-4% this year and said LFL net revenue growth would now be at the upper end of this guidance.
“We expect adjusted operating margins to be in-line with both the prior year and current market expectations” it added.