Reckitt Benckiser Shares Jump as Sales Top Expectations

Reckitt Benckiser (LON: RKT) shares jumped more than 3% on Wednesday after the company reported better-than-expected sales for the third quarter of 2024.

The company’s strong performance in its Hygiene and Health segments helped offset a decline in its Nutrition business.

Like-for-like (LFL) net revenue growth, which excludes currency fluctuations and acquisitions, declined by 0.5% in Q3, better than the analyst consensus expectation of a 1.7% decline.

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The positive performance was driven by a 2.1% Q3 growth in Hygiene and a 3.2% rise in Health, which outweighed a significant 17.4% decline in Nutrition net revenue.

The Hygiene segment benefited from broad-based growth across its Powerbrands, including Lysol and Finish.

The Health segment also performed well, driven by brands like Dettol and Nurofen. There was a decline in seasonal OTC brands due to tough comparisons and a slow cold and flu season.

The Nutrition segment experienced a decline primarily due to supply-related challenges caused by a tornado in Mount Vernon in July. However, the impact was less severe than initially anticipated, with sales losses estimated at around £100 million.

Reckitt Benckiser remains confident in achieving its full-year targets. The company expects all businesses to deliver strong LFL net revenue growth in the fourth quarter.

It continues to target full-year LFL net revenue growth of +1% to +3%, while it also now expects a high single-digit decline for Nutrition, reflecting the short-term impact to the business from the Mount Vernon tornado. Previously, the company expected a low double-digit decline.