Durex sales on the rise as Reckitt sees mixed fortunes post-lockdown

Reckitt, the consumer goods giant, has seen an upturn in sales of its Durex condoms, KY lubricants and Veet hair removal products as customers enjoyed the chance to get out again following lockdowns.

The group said sales for its Intimate Wellness brands grew last year by double digits, including popular product launches in China and growth in the US. Strong marketing in India has led to its condoms becoming the number two brand in the country.

There was also strong growth in the firm’s over-the-counter cold and flu division, compared with 2020 when strict lockdown restrictions globally saw a collapse in the number of people meeting each other and spreading the flu virus.

Reckitt said products including Strepsils and Lemsip had suffered from “very low incidences of cold and flu in 2020 and the spring of 2021” but were now improving, although they remain below 2019 levels.

Reckitt, the consumer goods giant, is behind a string of familiar brands including Durex.

Overall, the business swung to a loss as a major reorganisation saw it take hits from the offloading of its China business, IFCN, including a £40 million exit cost.

It also sold its Scholl business for £275m and its Argentinian EnfaBebe brand, while plans are under way to offload its E45 creams business for £200m.

As part of its overhaul, Reckitt bought Biofreeze for $1.1 billion (£810m) to tap into the topical pain relief market.

A pre-tax profit of £1.9bn turned into a £260m pre-tax loss for 2021.

Costs rose 11 per cent in the year due to input inflation, although this was offset by cost-cutting and increasing prices for many products.

Splitting its divisions, hygiene performed best with sales up 1.6 per cent in the year to £5.9bn, including strong sales of Air Wick, Lysol, Finish and Vanish. However, the latest results showed that sales fell in the final three months of the year due to strong comparisons with 2020 during the height of the pandemic and restrictions.

Adjusted operating profit in the division fell 6.9 per cent to £1.4bn.

Meanwhile, sales at the group’s health division fell 5 per cent to £4.6bn, with adjusted operating profit down 11 per cent to £1.2bn.

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