Demand for Dettol remains at 40 per cent above pre-Covid levels, brand owner Reckitt has revealed.
The Hull innovation was a halo product in the pandemic, and remains the turn-to disinfectant to keep bacteria at bay, in line with the company’s expectations.
First half results for the global operator saw sales up 4.4 per cent to £6.8 billion, with operating profit up 23.9 per cent to £1.7 billion.
Read more: RB reverts to Reckitt as Hull heritage brought back to the fore by Dettol and Durex giant
Laxman Narasimhan, chief executive, said: “We have delivered an excellent first half performance in 2022. Innovation and improved inmarket execution are driving sustained, broad-based revenue growth and market share momentum across our portfolio.
“Our brands less sensitive to the impact of Covid are growing ahead of our mid-single digit target, whilst our disinfection brands are performing as expected, well above pre-pandemic levels. The actions we have taken to broaden the shoulders of our Lysol and Dettol franchises, combined with our innovation and penetration building initiatives have built a significantly larger, sustainable base from which we will grow.”
Dettol was initially created in 1933 as a disinfectant to prevent sepsis following childbirth. It was a milestone moment in the evolution of the business, launched by Isaac Reckitt in 1840. The ambitious son of a Lincolnshire farmer, he had moved to Hull, taking on a mill in Dansom Lane - where key elements of the business are still based - to enter the starch industry.
Reckitt & Sons Ltd was formed as a private company in 1879, with the first scientific laboratories established in the following decade.
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Innovation continues there to this day, while it also rolls out supply services for large scale events such as COP26, the Queen’s Platinum Jubilee celebrations and the Commonwealth Games.
Mr Narasimhan, who has a deeply personal connection to the brand within the business he now leads, said: “Driving our earnings model to mitigate the very challenging inflationary environment is a key focus throughout our entire organisation. Our productivity programme has delivered over £370 million of savings in the first half, well ahead of our ongoing expectations. This, combined with favourable product mix and pricing, accompanied by one-off and short-term benefits, have enabled us to deliver adjusted operating profit growth in H1 well above net revenue growth.
“Imperative to our strong performance this period is the exceptional execution across our global operations. I want to thank each and every one of our colleagues for their tireless commitment during our transformation journey, and for their outstanding delivery amidst extremely challenging circumstances. It is this embedded ownership culture that continues to be a unique factor in our success for the future. We have built a stronger, more resilient business around our portfolio of trusted brands in growth categories. Despite challenging conditions, we are confident about the rest of the year, we are already delivering sustainable mid-single digit net revenue growth, and remain firmly on track to deliver our medium-term adjusted operating margin goal.”
An uptick of between 5 per cent and 8 per cent is now anticipated, with growth in adjusted margins.
The first half of the year has also seen the E45 and Dermicool brands sold for £240 million, while it is also in the process of transferring ownership of its Russian business, valued at £260 million.
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