Reckitt Benckiser revenue off people’s heightened hygiene habits amid pandemic
Reckitt Benckiser Bangladesh witnessed robust progress in profits found in the pandemic-ravaged first fifty percent of 2020 on the back of higher sales of hygiene products.
Profits of the neighborhood subsidiary of the Anglo-Dutch multinational consumer goods soared 54.28 % to Tk 27.17 crore in the first one half.
Between January and June, sales grew 28.87 per cent year-on-year to Tk 258.57 crore.
"Our profits and revenue grew in the quarter as the demand of some of our products had been high," explained Md Nazmul Arefin, organization secretary of Reckitt Benckiser Bangladesh.
Reckitt Benckiser, which got listed in the Dhaka STOCK MARKET found in 1987, joined the group of the multinational corporations listed with the DSE that produced a profit regardless of the pandemic.
British American Tobacco's profit grew a whopping 69 % in the next quarter of 2020 on the back of lower functioning costs.
Indian fast-moving consumer goods company Marico Bangladesh's net profit elevated by 17 % to Tk 99.66 crore in the April-June quarter.
Reckitt Benckiser's revenue per show, subsequently, rose 54.26 % to Tk 57.51 found in the first one half and 53.39 per cent to Tk 33.47 in the second quarter.
The news though failed to cheer the industry. The business's stock traded 2.34 % lower at Tk 3,572 yesterday.
"Stock investors realized that Reckitt Benckiser's profitability is certainly higher through the pandemic for the reason that multinational company's top-advertising products are hygiene-related," explained a high official of a leading stockbroker.
Integrated in Bangladesh in 1961, the business is engaged in making and marketing household and toiletries sanitisation goods, pharmaceuticals and foods.
Its brands include Surface finish, Lysol, Veet, Dettol, Surroundings Wick, Durex, Mortein, Strepsils, Woolite, Vanish and Harpic. In Bangladesh, the most used product of Reckitt Benckiser was soap and Dettol.
In 2019, Reckitt Benckiser widened its industry shares in the bar soap category and is holding the most notable position in the toilet cleaner category.
Owing to the pandemic, the company sees quite a few short-term issues, such as source chain disruptions, the volatility of international trade and currencies market segments, general economic downturn around the world and Bangladesh impacting buyer confidence and affecting intake patterns.
Sourcing of recycleables is a problem as a result of the global lockdown however the company has already established a stock of a sufficient amount of raw materials to create goods for Bangladesh, Arefin said.
"We maintain an even of stock in our company on a regular basis," he advised The Daily Star.
Like other folks, Reckitt Benckiser faced challenges to market products through the pandemic-induced shutdown. On the other hand, it managed to keep carefully the supply clean, Arefin said.
The huge demand for hygiene products might peter out once a highly effective virus to take care of the virus is available, the business secretary said.
"However, some people have grown to be used to applying hygiene products and they would continue steadily to do so."
