# Reckitt lifts full-year forecast as mobility, vaccinations pick up Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-10-26 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Strong Demand for Mucinex and Durex Drives Reckitt Meta Description: Reckitt Benckiser Group raises forecast as higher vaccination rates and improved mobility boost sales of cough syrups and condoms URL: https://financedigest.com/reckitt-lifts-full-year-forecast-as-mobility-vaccinations-pick-uphtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-10-26t064131z3lynxmpeh9p0avrtroptp4reckitt-benc-grp-results-1736837520203-compressed.jpg) By Siddharth Cavale (Reuters) – Higher vaccination rates and improved mobility during the third quarter drove strong demand for Mucinex cough syrups and Durex condoms, Reckitt Benckiser Group said on Tuesday, prompting it to raise its full-year forecast. That sent its shares up 5.8% in morning trading, making it the top gainer on the FTSE index. Sales of over-the-counter medicines rose more than 20% in the quarter, driven primarily by Mucinex cough and cold remedies after a [strong cold and flu season saw sales](https://www.financedigest.com/indias-tata-motors-jumps-to-a-7-month-high-on-strong-q4-jlr-sales.html "India’s Tata Motors jumps to a 7-month high on strong Q4 JLR sales") across most of its markets come in at or above 2019 levels, it said. Improved mobility in markets including India also saw the company [gain share](https://www.financedigest.com/bayer-shares-gain-on-prospect-of-second-activist-pushing-for-change.html "Bayer shares gain on prospect of second activist pushing for change") in sexual wellness products such as Durex, Chief Executive Laxman Narasimhan said on a media call. That drove like-for-like sales up 3.3% in the quarter, compared to the 0.7% drop analysts had expected, according to company-supplied estimates, which excluded sales from the recently completed sale of its infant nutrition [business in China](https://www.financedigest.com/lighting-maker-signify-cuts-2022-outlook-again-on-china-business-lighting.html "Lighting maker Signify cuts 2022 outlook again on China, business lighting"). The company also [raised its full-year net revenue like-for-like growth forecast](https://www.financedigest.com/cisco-forecast-raise-allays-tech-spending-fears-lifts-shares.html "Cisco forecast raise allays tech spending fears, lifts shares") to 1-3% from flat to 2% earlier, but cautioned that growth would be “softer” in the fourth quarter. Like its peers, Reckitt said it was seeing a sharp rise in raw materials costs, which were up [10% in the quarter compared with an 8-9% rise](https://www.financedigest.com/soccer-european-revenues-rise-10-in-2020-21-despite-covid.html "Soccer-European revenues rise 10% in 2020-21 despite COVID") it had estimated previously. [Chief Financial Officer](https://www.financedigest.com/host-analytics-appoints-chris-labruna-as-chief-revenue-officer.html "Host Analytics Appoints Chris LaBruna as Chief Revenue Officer") Jeff Carr said he expected inflation to be “up a touch” in the fourth quarter and possibly in the low double digits in 2022, but could not estimate when these higher costs would subside. There will be another round of pricing we will take to offset the inflation,” Narasimhan said, over and above the 1.7% hikes it took in the [third quarter](https://www.financedigest.com/greek-residential-property-price-recovery-picks-up-in-third-quarter.html "Greek residential property price recovery picks up in third quarter"). Domestos maker Unilever last week also warned of another round of price hikes to [battle fierce inflation](https://www.financedigest.com/swiss-national-bank-says-inflation-battle-not-yet-won.html "Swiss National Bank says inflation battle not yet won"). Reckitt kept its adjusted operating profit [margin forecast](https://www.financedigest.com/truck-maker-volvo-posts-record-q1-as-sales-margins-beat-forecasts.html "Truck maker Volvo posts record Q1 as sales, margins beat forecasts"), excluding IFCN China, for the year in the range of 22.7% to 23.2% [Shares in the group](https://www.financedigest.com/saipem-shares-drop-group-says-cannot-explain-why.html "Saipem shares drop, group says cannot explain why") were down 16% this year before the results, after hitting near-record levels in 2020. (Reporting by Siddharth Cavale in Bengaluru; Editing by Anil D’Silva and Jan Harvey) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---