ibusinesslines.com
ibusinesslines.com December 16, 2017


Reckitt Benckiser cites macroeconomic conditions amid flat first quarter sales

21 April 2017, 05:00 | Erica Roy

The Durex brand continued with strong performance Reckitt Benckiser reported

Sperm men who work for British condom

The announcement came as the company, whose brands include Dettol, Durex, and French's ketchup and mustard, reported flat first quarter sales. This included a 15% rise for its Health unit, 18% for the Hygiene unit, and 11% for the Home unit.

However, revenues benefited strongly from a positive currency effect, which had double-digit positive effects across every segment of the business.

Total revenue in the quarter matched estimates at 2.64 billion pounds ($3.4 billion) due to a benefit from exchange rates.

Reckitt Benckiser is at a crossroads, with the British conglomerate looking to pivot its portfolio towards consumer healthcare.


Reckitt said it would explore options for its food business before reaching any decision. However, flatter like-for-like performance in Reckitt's main markets has given investors pause for thought.

Reckitt however said sales would improve as the year goes on and stood by its target for annual growth of 3 percent. Reckitt Benckiser's business in South Korea has collapsed over its handling of a safety scandal in which it is said that 92 people were believed to have died from lung injuries related to humidifier sterilizers it once sold there. Strategic review of the Food business commenced.

"Perhaps we should have spaced out these launches to give them enough breathing time and recovery time", Chief Executive Officer Rakesh Kapoor said on a conference call with analysts, referring to disappointing sales figures for new products such as Scholl's Wet and Dry Velvet Smooth electric hard-skin remover. "We delivered continued outperformance in consumer health and good growth in (developing markets), offset by previously flagged headwinds, which will persist during the first half".

"We remain very confident that the strategic direction we are pursuing will continue to drive shareholder value", Kapoor added. The $16.6 billion acquisition of baby formula maker Mead Johnson, announced in February, is progressing well, the company said, and should be completed by the end of the third quarter.



Other News

Trending Now

Should McDonald's Workers Get $50K Reward in Facebook Murder Case?
Within a day, authorities expanded the search nationwide and offered a $50,000 reward for information leading to his capture. WICU reports that Stephens went to a McDonald's drive-thru and ordered chicken McNuggets and French fries.

Sharks Explode For Seven Goals While Blanking Oilers to Even Series
So far, San Jose has gotten goals from Melker Karlsson, Paul Martin and Joel Ward, who combined for 25 in the regular season. Sorensen knocked in a rebound midway through the period and Couture ended Talbot's night with a wrister from the circle.

Morgan Stanley says this is why Tesla is building a commercial truck
The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link . The target price for Tesla Motors, Inc. (NASDAQ: TSLA ) traded up 1.99% during midday trading on Wednesday, hitting $262.61.

USS Carl Vinson carrier group expected off Korea at end of April
And a picture dated April 15 shows the Vinson in the Sunda Strait, which separates the Indonesian islands of Java and Sumatra. The strike group has been conducting drills with the Australian navy in recent days, the official said.

Chinese Industrial Production, Retail Sales Surge in March
The government has trimmed its 2017 GDP growth target to "around 6.5 percent" as the economy faces an array of challenges. That is slower than 1.7 percent in the fourth quarter of past year .

Sweden attack suspect denied request for Sunni Muslim lawyer
Police and Sweden's intelligence have questioned some 500 people as part of the investigation, a senior police officer said. Mr Bevington lived in Stockholm with his family and worked as a director with music streaming service Spotify.

Marlins netted by Mariners
In his second season with the Marlins previous year , Suzuki collected his 3,000 hit to join the hallowed fraternity. Ichiro said he did not think of the memorable at-bat as conclusively being his final one in Seattle .