Reckitt Lifts Annual Forecast On Higher Prices, Baby Formula Shortage

Reckitt Lifts Annual Forecast On Higher Prices, Baby Formula Shortage
  • Reckitt Benckiser Group PLC RBGLY said Q2 like-for-like revenue rose 11.9% on a constant currency basis, beating the 6.8% growth analysts had expected in a company-supplied poll. 
  • Reckitt hiked prices 9.7% in the quarter, while sales volumes were up 2.2%.
  • Q2 sales increased 5.9% on constant currency to £3.46 billion, including a 3.3% boost from sales of its Enfamil baby formula amid a shortage of supplies in the U.S. after Abbott Laboratories ABT recalled dozens of brands in February.
  • Related: More Companies Join Race To Ease US Baby Formula Supply Crunch.
  • "We've clearly seen the supply situation help us with regard to overall market share," CEO Laxman Narasimhan said. "We will see some normalization as a competitor comes back online, but we have a business with a brand that's the number one recommended brand," as per Reuters.
  • Guidance: Reckitt expects like-for-like net revenue growth of 5-8% for 2022 and growth in adjusted operating margins. 
  • In April, it had forecast net revenue growth in the upper part of a 1-4% range and margins in line with last year.

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