LONDON (Reuters) -Reckitt Benckiser Group beat first-quarter sales expectations on Friday, having increased prices to offset soaring raw material costs and flat volumes.
Consumer goods makers from Procter & Gamble to Nestle have for months sought to raise prices in the face of higher supply chain and commodity expenses, with Russia’s invasion of Ukraine having also driven energy prices to record highs.
Reckitt said cost inflation has increased to percentages in the “high teens”. The company had said in February that full-year costs had risen by about 11% and it expected expenses to be higher in 2022.
“The input environment remains highly volatile and unpredictable,” Reckitt said. “It has become more adverse since our last market update in February due to the ongoing war in Ukraine.”
Reckitt raised prices by 5.3% during the quarter and said it now expects full-year like-for-like net revenue growth towards the upper end of its forecast of 1-4%.
The company expects full-year adjusted operating margins in line with current market expectations, Chief Executive Laxman Narasimhan said in an earnings statement. Analysts expect an adjusted operating margin of 22.9%.
The maker of Lysol cleaning products and Durex condoms said quarterly like-for-like sales rose 5.6%, ahead of the 1.5% growth analysts had expected in a company-supplied poll.
(Reporting by Richa NaiduEditing by David Goodman)
