Reckitt Lifts Annual Forecast On Higher Prices, Baby Formula Shortage
Reckitt Benckiser Group PLC (OTC: 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 (NYSE: 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.
See more from Benzinga
Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
