Reckitt Benckiser grapples with a slight decline in revenue amid post-pandemic challenges, yet remains assured of meeting its full-year targets.
- The company experienced a -0.5% growth in like-for-like net revenue for Q3; overall net revenue declined by 4% in Q3 and 3.8% for the year ending September.
- Growth was noted in Reckitt’s hygiene and health sectors, but nutrition sales fell by 17.3%, largely due to supply issues from the Mount Vernon tornado.
- Reckitt’s strategic reorganisation for 2025 will focus on three divisions, aiming for streamlined operations and enhanced shareholder returns.
- CEO Kris Licht expressed confidence in the company’s resilience, highlighting progress in its share buyback programme and leadership restructuring.
Reckitt Benckiser has reported a minor decline in like-for-like net revenue, with a -0.5% change in the third quarter, and an overall annual decrease of 3.8% by the end of September. Despite these figures, the company remains confident in achieving its full-year targets. The consumer goods powerhouse anticipates robust like-for-like net revenue growth across all divisions in the final quarter, as disclosed in a report by City AM.
The firm’s health and hygiene divisions have shown positive trends, recording growths of 2.1% and 3.2% respectively for the third quarter. However, Reckitt’s nutrition division faced a significant setback, with sales plummeting by 17.3%. This downturn was attributed to £100 million worth of supply challenges following the July tornado in Mount Vernon.
Reckitt has announced a strategic restructuring to be implemented in January 2025, which will streamline its operations into three main divisions: Reckitt, Essential Home, and Mead Johnson Nutrition. The company aims to enhance its focus on high-margin Powerbrands, while also considering strategic options for its non-core Essential Home and Mead Johnson Nutrition portfolios.
A significant reshuffle in Reckitt’s global leadership team has been completed, with pivotal senior positions now occupied by newly appointed leaders. The company has also made strides in its share buyback programme, achieving £321 million out of the planned £1 billion initiative outlined earlier this year.
CEO Kris Licht reflected positively on the quarterly performance, remarking, “Our third quarter delivery is in line with our guidance at the half year. Health delivered sequential improvement, and hygiene reported steady growth, even amidst a competitive market.” He further noted the resilience and strength of their brands, despite the challenges posed by the Mount Vernon tornado.
Reckitt remains steadfast in its strategic direction and optimistic about achieving its financial goals for the year.
