U.K-based, home care products maker, Reckitt Benckiser printed a record sales growth in the first quarter ended 31 march and predicted a stronger-than expected performance in 2020 as customers stocked up on Lysol disinfectants, Mucinex cough syrup and Dettol soap ahead of the coronavirus lockdowns.
Reckitt’s net revenue rose 12.3 percent to 3.54 billion pounds in the three months ended March, beating analysts’ average estimate of 3.29 billion pounds.
The growth was the biggest since the company was formed in 1999 through the merger of Reckitt & Colman and Dutch firm Benckiser. a modest decline as people stayed at home under lockdown. fallen, it had seen doubledigit growth of Durex online as customers changed their shopping habits during the pandemic.
According to the company, an “exceptional demand” led to huge sales growth in the first quarter of 2020 as customers stocked up on cleaning products, painkillers, and hand sanitizer.
The boom in demand has come as the company had been battling intense competition in the health and hygiene industry.
In February, Reckitt had announced plans to spend 2 billion pounds over the next three years to spur growth.
The company’s boost in sales was much better than consumer goods giant Unilever first quarter result. The Dutch-giant saw sales virtually flat at the start of the year.
It has however urged consumers not to drink or inject their products as a remedy to fight the deadly Coronavirus. This warning is coming after U.S. President Donald Trump suggested that scientists should explore whether inserting ultraviolet light or disinfectant into the bodies of people infected with the disease caused by the novel coronavirus would help.
The maker of Dettol issued the first warning, saying: “Under no circumstance should our disinfectant products be administered into the human body (through injection, ingestion or any other route).”
Clorox, maker of bleach, soon followed, calling it critical for consumers to understand the facts.
“Bleach and other disinfectants are not suitable for consumption or injection under any circumstances,”