RECKITT’S net revenue rose 3.5 per cent to £13.23 billion in 2021, driven mainly by its hygiene products.
The consumer goods company expects a "mid-single" growth in its net revenue during the current year on a like-for-like basis.
Its chief executive officer Laxman Narasimhan said it targeted growth in 2022, “despite an unprecedented inflationary environment and uncertainties created by Covid.”
Around 70 per cent of its portfolio, representing brands less sensitive to the pandemic, grew mid-single-digits in 2021 and the rest of its products including Lysol and Dettol were more volatile, reflecting fluctuations in the Covid-related demand.
Its net revenue grew at 3.3 per cent in the October-December quarter over the corresponding period in 2020, benefitted by the strong demand for health products.
However, the British company reported an operating loss of £804 million for the full year against the previous year’s profit of £2.16 bn as the strategic review and disposal of IFCN China eroded £3.35 bn.
In September last year, Reckitt had announced that it sold the Chinese child nutrition business to Primavera Capital Group for an implied enterprise value of $2.2 bn (£1.62 bn).
Geographically, the company’s highest net revenue growth of six per cent for the full year came from developing markets, particularly India and the Middle East, compared to 2.9 per cent in North America and a more modest 1.5 per cent in Europe/Australia and New Zealand.
In absolute terms also, the net revenue from the developing market was the highest at £4.71 bn against £4.2 bn from North America and £4.31 from Europe and Australia.
On the overall performance, Narasimhan said, "over the last two years, we've significantly strengthened our business. Our innovation pipeline is 50 per cent larger, our brands are stronger and more relevant, and our ability to serve our customers and consumers is greatly improved. We've taken Reckitt's strong performance-driven culture, with its unique sense of ownership, and are evolving it for the better. We've also been active in managing our portfolio, repositioning for faster growth”.
Shein’s UK sales hit £2.05bn in 2024, up 32.3 per cent year-on-year, driven by younger shoppers.
The retailer benefits from import tax loopholes unavailable to high street rivals.
Faces mounting criticism over labour practices and sustainability as it eyes a London listing.
Tax edge drives growth
Chinese fashion giant Shein is transforming Britain’s online clothing market, capturing a third of women aged 16 to 24 while benefiting from tax breaks unavailable to high street rivals.
The fast-fashion retailer’s UK sales surged 32.3 per cent to £2.05bn in 2024, according to company filings, with pre-tax profits rising to £38.3m from £24.4m the previous year. The growth comes as established players like Asos struggle in an increasingly competitive landscape where young consumers prioritise value above all else.
Shein has partly benefited from a tax break on import duty for goods worth less than £135 sent directly to consumers, The rule lets overseas sellers send low-value goods to the UK tax-free, disadvantaging local businesses.
“The growth of Shein and Temu is a huge factor,” said Tamara Sender Ceron, associate director of fashion retail research at Mintel told The Guardian. “It is particularly successful among younger shoppers. It is also a threat to other fashion retailers such as Primark and H&M because of its ultra-low price model that nobody can compete with. It’s changed the market.
"The market dynamics reflect broader shifts in consumer behaviour. Online fashion sales reached £34bn last year, up 3 per cent, according to Mintel, but shoppers have become more cautious as disposable incomes shrink, and fashion competes with holidays, festivals, and streaming services for wallet share.
Scrutiny builds
Despite its commercial success, Shein faces mounting scrutiny. The company filed initial paperwork last June for a potential London Stock Exchange listing, but critics question its labour practices and environmental impact.
"Regardless of whether Shein gets listed on the London Stock Exchange, no company doing business in the UK should be allowed to play fast and loose with human rights anywhere in their global supply chains,” said Peter Frankental, economic affairs programme director at Amnesty International UK to BBC.
The “de minimis” rule has drawn renewed attention after US President Donald Trump scrapped a similar measure during his trade war with China.
Shein’s UK operation now employs 91 people across offices in Kings Cross and Manchester, focusing primarily on local market expertise.
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