Reckitt’s total net revenue grew 3.3% year over year in the fourth quarter and increased 3.5% for the full year. As with other consumer goods companies, it raised prices to offset inflation: COGS inflation was 11% higher vs. 2020 — and up over the 8-9% initially anticipated. The company expects inflation to continue this year and will implement additional price increase, revenue growth management, and productivity measures in 2022.
[See also: Supply Chain Execution Report]
Looking toward the future of consumer behavior, the company anticipates many of the pandemic-prompted habits to stick. Eighty percent of consumers say they’ll maintain their new habits post COVID, according to Reckitt’s internal consumer research, which is down just slightly from the 83% who said the same two years ago during COVID’s initial peak.
What’s more, half of consumers are still disinfecting their homes more versus pre-COVID times, according to Reckitt.
“Rather than become complacent, once vaccinated, we actually find that vaccinated people are more likely to be more germ-sensitive and maintain this habit,” noted Narasimhan.
On the sustainability front, Reckitt has developed a sustainability calculator to determine its environmental footprint on each product made, as well as measuring the level of revenue made for more sustainable products.