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Reckitt price hikes drive 5.6% first-quarter sales growth -Breaking

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© Reuters. FILEPHOTO: Reckitt Benckiser’s products are seen in London on February 12, 2008, Britain. REUTERS/Stephen Hird

LONDON (Reuters] -Reckitt Benckiser Group beats first-quarter sales forecasts Friday. They increased prices in order to offset soaring raw-material costs and flat volumes.

Consumer goods makers from Procter & Gamble (NYSE:) to Nestle have for months sought to raise prices in the face of higher supply chain and commodity expenses, with Russia’s invasion of Ukraine having also driven energy prices to record highs.

Reckitt claimed that inflation in cost has reached “high teens” levels. Reckitt had previously stated in February that the company’s full-year expenses had increased by approximately 11%. It expects higher expenses in 2022.

Reckitt noted that the input environment was highly unstable and unpredictable. Due to the conflict in Ukraine, it has become even more difficult since our February market update.”

Reckitt’s prices increased by 5.3% for the quarter. Reckitt said that it expects to see full-year revenue growth of like-for-like towards the higher end of its 1-4% forecast.

According to Chief Executive Laxman Nasiamhan, the company anticipates full year adjusted operating margins that are in line market expectations. Analysts anticipate an adjusted operating margin at 22.9%.

According to Durex condoms and Lysol cleaners, quarterly sales of like-for-like products rose by 5.6%. This is higher than the 1.5% expected growth that analysts predicted in a poll.

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