Reckitt Benckiser caps 2020 with record sales growth, to sell Scholl

Reckitt reported an 11.8% rise in like-for-like sales growth for the full year, its largest increase since being formed in 1999, but marginally lower than the 11.9% growth forecast by analysts in a company-supplied consensus. Like-for-like annual sales surged 25.7% in the company's hygiene business, mainly driven by strong performances in Lysol and Finish units as households continued to keep up their cleaning routines even after a year since the coronavirus outbreak.

British consumer goods maker Reckitt Benckiser on Wednesday capped 2020 with the strongest sales in its history, as the COVID-19 pandemic made hygiene a top priority and fuelled demand for its cleaning products.

The company said it expects sales in 2021 to come in flat or up 2%, slightly slower than the pace it saw in 2020 due to tough comparables versus last year while lower birth rates also kept a lid on sales of items such as Enfamil baby formula. The Slough-based company said a strategic review was underway for its infant formula business in Greater China, and added that it would sell its Scholl foot products unit to private equity firm Yellow Wood Partners and acquire Biofreeze pain relief gel from Performance Health.

Terms of both transactions were not disclosed, but the company said deals would initially be earnings-neutral. Reckitt reported an 11.8% rise in like-for-like sales growth for the full year, its largest increase since being formed in 1999, but marginally lower than the 11.9% growth forecast by analysts in a company-supplied consensus.

Like-for-like annual sales surged 25.7% in the company's hygiene business, mainly driven by strong performances in Lysol and Finish units as households continued to keep up their cleaning routines even after a year since the coronavirus outbreak.