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Reckitt Benkeiser, owner of Musinex, sees the surge in demand as a cold and a recurrence of the flu

Reckitt Ben Kieser Group

RBGLY -0.90%

PLC said demand for cold and flu products increased as social distance eased, and helped Guaifenesin drug owners report increased quarterly sales and raise annual guidance. ..

A UK-based consumer goods giant said Tuesday that “cold and flu sales trends have improved significantly” in the third quarter. After the Covid-19 regulations closed schools and offices last year to curb seasonal illnesses, hitting demand for Reckitt Benkeiser’s cold remedies and flu medications such as Musinex and Strepsils. It was resurrected.

According to the company, sales of commercial products increased by 20%, mainly driven by Musinex, with cold and flu brands gaining market share. Reckitt Benquiser said trends for both brands are improving again, but it’s a decline in sales for Lysol and Dettol, the major cleaning and disinfecting brands that surged last year in the pandemic. Helped to surpass. Overall, third-quarter sales increased 3.3%, removing the effects of currencies, acquisitions and sales.

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Reckitt Benquiser said it is also working to raise input costs for paper, tin and marine transportation, and has raised selling prices accordingly. Higher price, And sales of more expensive product lines contributed 1.7% to quarterly growth, with 1.6% of growth coming from volume or sales of more products.

Like other companies in the consumer products industry, Reckitt Benquiser said it was facing supply chain disruptions and that not all products were delivered on time on Tuesday.

Nonetheless, the company has raised its full-year guidance and predicts similar net sales will grow between 1% and 3%, given previous guidance that similar sales are flat to between 2%. bottom. Despite high inflation, Reckitt Benquiser maintained margin guidance, partly because cold and flu products are generally profitable.

Correspondingly, shares in London-listed companies rose nearly 6% in early Tuesday trading.

Analysts also said that all three divisions of Reckitt Benkeiser exceeded expectations for the quarter. Reckitt Benkeiser reported a 3.6% increase in sales of health arms, including cold and flu products. Sales in the hygiene sector, including Lysol, increased by 2.9%, and sales in the nutrition sector, including vitamins, increased by 3.8%.

Reckitt Benquiser reportedly saw a 6.8% drop in third-quarter sales, the strength of the pound against several other currencies, and among other assets in the infant nutrition business, especially in China. He said it fell due to the sale.

Write in Saabira Chaudhuri at saabira.chaudhuri + 1@wsj.com

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Reckitt Benkeiser, owner of Musinex, sees the surge in demand as a cold and a recurrence of the flu

Source link Reckitt Benkeiser, owner of Musinex, sees the surge in demand as a cold and a recurrence of the flu

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