Dettol helps Reckitt to clean up in pandemic

BOOMING demand for cleaning products during the pandemic helped Reckitt Benckiser to its biggest rise in annual sales.

The consumer goods giant behind brands including Cillit Bang and Dettol revealed like-for-like revenues jumped 11.8pc to £14bn in 2020 – the largest increase since it was formed through the merger of Britain’s Reckitt & Colman and Dutch rival Benckiser in 1999.

Reckitt said the jump was due to greater awareness of hygiene and health as the Covid-19 crisis convulsed the globe.

Surface disinfectants Dettol and Lysol, which were launched in 41 markets last year, are now used by more than 300m households worldwide, it said. Amid the boost, Reckitt swung from an annual loss of £665m to a £1.9bn profit.

Boss Laxman Narasimhan said: ‘ We successfully navigated uncharted waters. I am immensely grateful to colleagues, customers and partners who helped us respond to the challenges of Covid, stepping up production and improving execution, while staying safe. We expect 2021 to be a year of further progress.’

It came amid a flurry of deal making, raising the prospect of selling its baby formula business in China, just four years after acquiring it.

Reckitt insisted no decision had been made. It originally bought Enfamil maker Mead Johnson in 2017 for £12.8bn – its biggest takeover ever – with an eye to cashing in on China after it scrapped its one child per household policy.

Meanwhile, Reckitt also announced the sale of footcare products business Scholl to US private equity firm Yellow Wood Partners, as well as its purchase of pain relief brand Biofreeze from US-based Performance Health.

The firm did not disclose the sale figures for either. Shares fell 1.5pc, or 88p, to 5882p.