The price of shares in FTSE 100 consumer goods firm Reckitt Benckiser (LON:RB.) climbed by 1.35% to 7,301.56p (as of 10:25 BST) after it reported a 13.3% improvement in total revenues for the third quarter. Year-to-date performance was up by 9.4%, driven by the health and hygiene divisions.
CEO Laxman Narasimhan commented: “Our plan to rejuvenate sustainable growth at RB is gaining momentum, and thanks to the exceptional efforts of the RB team, we are beginning to see the positive impact that the transformation is having on the business. 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.
“Our performance has been led by an increase in Hygiene and Health volumes, led by our market-leading disinfectant brands – Dettol, Lysol, Sagrotan and Napisan. Growth has been underpinned by better customer service levels and an improved supply chain performance, together with strong momentum in eCommerce. While the revenue performance in Nutrition improved in the quarter, we remain fully focused on addressing the headwinds, such as Hong Kong, and taking the actions necessary to deliver a sustained improvement.
“With a world-class portfolio of hygiene, health and nutrition brands and a clear purpose – to protect, heal and nurture in the relentless pursuit of a cleaner and healthier world – we are uniquely placed to help tackle the challenges the world is facing. 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.
“In meeting the significant challenges of COVID-19, we have shown that we are becoming a stronger and more agile business. We are well on the way towards completing the first phase of our strategic plan, to ‘stabilise and perform’, as part of our journey to deliver mid-single digit revenue growth in the medium term and mid-20s margins by the mid 2020s. Our improved execution and the investments in capability and growth, will enable us to achieve our revenue growth target a year earlier than expected, and with greater certainty“.