Reckitt profits soar as price hikes more than offset dwindling demand
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Reckitt Benckiser sees earnings rise as series of price increases more than offset declining demand
The company behind popular household products such as Dettol and Lemsip saw profits rise after a series of price hikes more than offset declining demand.
Reckitt Benckiser, who is also behind Nurofen painkillers and Durex condoms, said profits rose 19.5 per cent to £3.4 billion last year, even as it increased prices by 8 per cent, with some items selling by more than increased by a third.
That helped boost sales by 9.2 per cent to £14.5 billion – even though the volume of goods sold fell by 2.2 per cent in 2022 and as much as 5.8 per cent in the fourth quarter.
Price hikes: Reckitt Benckiser said profits rose 19.5% to £3.4bn last year, even as it boosted prices by 8%, with some items rising by more than a third
Some increases were much higher than inflation.
Dettol’s antibacterial wipes are up 32 per cent, from £2 for a pack of 72 to £2.63, according to data from market research firm Assosia, reported by The Mail on Sunday.
Other monster improvements include Finish dishwasher rinse aid, which is up 37 per cent in a year, from £3.05p. for a 400ml bottle at £4.17. A pack of 12 Durex Thin Feel condoms went up to £11 – 10 per cent higher than a year ago.
Interim CEO Nicandro Durante said prices would rise “much less” in 2023 with also a “better picture” for expected volumes.
He said inflation was likely to cool to “single digits.” “So we expect prices for 2023 to be much lower than what you saw in 2022,” said Durante, who took the role in October last year.