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Every day, in everything we do, our purpose is to protect, heal and nurture in the relentless pursuit of a cleaner, healthier world. And we have a fight on our hands. A fight to make access to the highest quality hygiene, wellness and nourishment a right and not a privilege. Each of our products is designed to do exactly this. Our well-loved brands have been making a difference to people’s daily lives around the world for more than 200 years. Brands including: Durex, Dettol, Enfamil, Nurofen, Strepsils, Gaviscon, Mucinex, Nutramigen, Lysol, Harpic, Cillit Bang, Finish and Vanish. By 2030, our ambition is to reach half of the world, every year. We’re a growing global community of over 43,000 people on a journey of transformation and sustainable growth. Together, our success will continue to positively impact communities everywhere, for a healthier planet and a fairer society.
United Kingdom www.reckitt.com
Sales: $11.3 billion
Corporate sales fell 5.4% to $18.2 billion. The company blamed net M&A impact of -3.8% and foreign exchange headwinds of 5.1%.
Sales of hygiene products rose 1.6% to more than $8.1 billion. The hygiene division accounts for 45% of corporate sales, with 80% of that revenue from developed markets. Reckitt notes globally, dishwashing machine penetration is just 13%—plenty of room for Finish to operate. Last year, Finish sales rose mid-single digits. Sales of Airwick and Vanish both rose double digits. Meanwhile, in 2021, Lysol sales didn’t match pandemic-fueled results of 2020, but Reckitt notes that Lysol gained 700bps of US market share since 2019. Lysol is the largest disinfectant brand in the world.
The health division includes brands like Dettol, KY and Veet. Sales fell 5%, as Dettol sales declined low double-digits in 2021, after exceptional gains in 2020. During the year, Reckitt introduced Dettol Tru Clean, its first plant-based disinfectant. The company said more Dettol launches will soon arrive. Sales of Veet grew mid-single digits. Growth was driven by a focus on eCommerce and other new channels, as well as the expansion of Veet for Men and the launch of Veet Minima/Pure.
Last year, Reckitt launched its 2030 sustainability ambitions for a Cleaner, Healthier World. Some of the program’s 2025 goals include 100% plastic packaging be recyclable or reusable and 25% recycled content in plastic packaging. By 2030, 50% of net revenues from more sustainable products and a 50% carbon footprint reduction. By 2040, Reckitt expects to reduce its water footprint by 50%.
In I&I news, in March 2022, Diversey began distributing Dettol, Lysol, Harpic, Vanish, Airwick and Pine O Cleen in the B2B channel in the Middle East, Asia Pacific, as well as Turkey and Russia. The move expanded on the relationship Reckitt and Diversey have in North America.
For the first quarter of 2022, sales fell 2.3%. Hygiene sales fell nearly 11%. Reckitt blamed the decline on lower Lysol sales. When the covid pandemic was raging in Q1 2021, Lysol sales soared 70%—clearly a tough act to follow. Every other hygiene brand, recorded gains. Health sales rose nearly 16%. Nearly three-quarters of health care brands held or gained market share, including most disinfection markets.
In April, Reckitt sold E45 skin care brand to Karo Pharma for about $262 million. E45 had sales of about $56 million in 2021. That move followed the 2021 sale of the Dr. Scholl’s franchise.
In June, Finish teamed up with the World Wildlife Fund to launch the Journey of Water, a program to restore and replenish freshwater and educate consumers on how they can save water at home. Last fall, Reckitt launched #skiptherinse to raise awareness of water scarcity and to remind consumers they don’t need to pre-rinse dishes prior to loading the dishwasher.
Sales: $7.4 billion
Corporate and hygiene division sales reached record levels in 2020. Developed markets accounting for 79% of sales and emerging markets 21%. Reckitt executives insist the company is well-positioned to take advantage of five megatrends, urbanization and global warming, growing demand for self-care, sexual health crisis, growing and aging population, and technology proliferation.
Last year, Reckitt’s hygiene sales increased 15.6%. With consumers around the world staying home during the pandemic, demand for Lysol and Finish soared. Lysol sales rose 70% on the year, due primarily to gains in North America. Sales of Finish rose more than 20%, with particularly strong performances in the US and UK. Air Wick also delivered good growth in the year, after a slow start, led by the US and Europe, in part reflecting the successful launch of Air Wick Essential Mist and robust sales within the base scented oils business. Mortein and Harpic also delivered growth in all their major geographies, with Harpic particularly strong in India. Cillit Bang delivered double digit gains in 2020. In fact, among its power brands, only Vanish’s sales declined. Reckitt blamed it on “stay at home” behavior, which reduced demand for stain removal.
Reckitt proudly notes that more people are using its products than ever before. For example, Lysol is used in more than 100 million households around the world and Harpic can be found in over 100 million households in India alone.
The company pegs the global hygiene market at about $90 billion, with surface, dish and fabric care together accounting for 70% of the market. According to Reckitt, the global hygiene market is growing 4-5% a year. The company predicts that infection transmission will grow as populations move around the world, creating megacities. Further, Reckitt noted climate change is linked to infection and disease. It said deforestation is thought to be the cause of 33% of new and emerging outbreaks such as Ebola and Zika.
Last year, Reckitt created Global Business Solutions in response to the growing need for germ protection outside the home. The initiative was well received as GBS formed partnerships with AirBnB, British Airways, Delta Airlines, Hilton and Uber.
In other moves, at the start of the pandemic, Reckitt launched COVID-9facts.com to provide accurate and credible information to counter myths that gained traction on social media platforms. The Dettol #HandWash Challenge began in India in April 2020. By the end of the year, it had more than 125 billion views on TikTok.
About a year ago, Reckitt invested $25 million in the Global Hygiene Institute. CEO Laxman Narasimhan noted that the pandemic pushed public health to the top of the global agenda.
“We see the need for a new paradigm that brings together the highest quality scientific based evidence and informed public health recommendations to generate large-scale behavior change for a cleaner, healthier world,” he explained.
By the end of the year, 12% of Reckitt’s global sales came through e-commerce.
At the start of 2021, Reckitt acquired Queen V, a feminine wellness brand that markets a range of pH-balanced, better-for-you products that are easy-to-use, and accessible to women everywhere.
Also in January, RB invested in Bombay Shaving Company, India. BSC’s portfolio includes more than 100 products in the shaving, bath and body, skin and beard category.
For the first quarter of 2021, corporate sales fell 1.1%.
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