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Dettol: Reckitt Share Price Jumps 3% as 3Q Sales Beat Estimates

Practice Stock Trading
Updated: 20 October 2020

Shares of Reckitt Benckiser Group PLC (LON: RB.) rose around 3% on Tuesday after the company said its sales jumped by 13.3% on a like-for-like basis, beating the market analysts’ expectations of a 9.5% rise

Net revenue for the quarter jumped to £3.51 billion from prior £3.21 billion. As a result, the maker of Dettol and Lysol upgraded its full-year net revenue guidance to a low double-digit jump, higher than previous high single-digit growth.

In the hygiene unit, sales surged 19.5%, followed by a rise of 12.6% in its health business. The nutrition sector saw its sales rise by 4.1%.

“The strong momentum in the first half has continued in Q3 and we are on track to deliver low double digit like-for-like net revenue growth for the full year,” said Laxman Narasimhan, Chief Executive Officer.

“Our plan to invest over £2bn over three years is on track, supported by our expanded productivity programme which has delivered savings of £300m so far this year. We are also reinvesting our outperformance to capitalise on the strong demand for our products, particularly with Dettol and Lysol and through eCommerce and professional channels.”

As reported earlier, Reckitt is seeking to offload some of its personal care brands, such as Veet and Clearasil creams.

Reckitt Benckiser share price rose on better-than-expected Q2 results October 2020

Reckitt share price rose about 3% to trade north of 7400p again.

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