Continued strong demand for staple hygiene products Dettol and Lysol saw Reckitt ring in a further 4.1 per cent growth in the first quarter of 2021.
The £1.6 billion segment was up 28.5 per cent, countering a 90 per cent drop in health products as global lockdowns prevented cold and flu spreads, stifling demand.
Laxman Narasimhan, chief executive, presented the first results since RB reverted back to its Hull roots with the heritage name.
He said: “2021 has started well with like-for-like net revenue growth in line with our expectations. This brings two-year growth to over 17 per cent as we lap the pantry loading of March 2020.
“Demand for Lysol and Dettol continues to be strong as consumers remain vigilant to the spread of the virus and see use of our products, and improved hygiene habits, as a way of protecting their health and regaining normality in their lives.
"As is to be expected, the underlying drivers of near-term demand for disinfectant products are dynamic, with countries around the world at different stages of the pandemic, and we are therefore closely tracking shifts in consumer behaviour to understand supply and demand trends.
“Our portfolio is constructed to benefit pre- and post-Covid, and the inherent balance leaves us favourably placed to perform well in both the short- and longer-term. We see continued strong demand for our brands, better execution, and the benefits of our recent investments feeding through in the form of more focused innovation, increased capacity, and better customer service.
“There is still much to do, and the actions we are taking make Reckitt a stronger, more competitive, business with each day. We have the right team in place, and our portfolio is increasingly well-positioned to benefit from attractive market fundamentals. We continue to be confident in the outlook for both 2021 and the medium-term.”
Total revenue was up to £3.5 billion.
In research and development, with £105 million spent on new centre of excellence in Hull, Mr Narasimhan said: “Our investment in science platforms, digital and people capabilities is continuing to drive a more competitive development pipeline, with launches so far in 2021 including Dettol Tru Clean, our first plant-based disinfectant in the Ƶ, and Provital, in the rapidly growing healthy aging and immunity segment, in China.”
Feedback from many markets outlined that consumers are more aware of the spread of germs than ever before, with potential for “geographic expansion” outlined.
Austria, Belgium and Scandinavia are new markets for Lysol and Dettol, with a total of 70 launches planned by the year’s end.
Reckitt has also secured Official Hygiene Partner status for the COP 26 Climate Summit in Glasgow, building on work with Transport for London and the Football Association.
