Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) has reported a slowdown in third-quarter sales growth and said it continues to expect to pass on cost hikes to consumers for the rest of the year.
Total sales for the company, which is behind brands such as Clearasil, Finish and Veet, grew by 7.4% to £3.7bn in the third quarter compared to last year.
"Reckitt delivered another quarter of broad-based growth amidst challenging market conditions, as we continue to innovate and improve on our in-market execution,” said the FTSE 100-listed company's chief executive Nicandro Durante in the third quarter results.
This, however, was a slowdown from the first half, where it reported 8.6% revenue growth, with Reckitt noting that its sales volumes fell by 4.6%.
The company narrowed its full-year net revenue growth target to somewhere between 6% and 8%, compared to previous estimations of 5% to 8%.
However, Reckitt said it expects inflation on the cost of goods sold to remain in the high teens for the full year, meaning costs will continue to be passed onto consumers.
Additionally, the company said it expects higher levels of investment in the second half compared to the first six months of the year, and looks to face a tougher inflationary environment as favorable first-half hedge positions are renewed at higher rates.