Reckitt Benckiser: disappointing results - inflation weighs
(CercleFinance.com) - On Tuesday Reckitt Benckiser reported lower-than-expected H1 results and warned of lower margins this year due to high inflation in its costs.
The household products maker posted H1 EPS of 142.6p, down 14.4%, below the consensus of 144p.
For the full year, the British group says that it now expects an adjusted operating margin of 22.7% to 23.2%, excluding the scope of the IFCN China subsidiary which is currently being sold.
This target is between 40 and 90 percentage points below the 23.6% operating margin recorded last year.
Management said that cost inflation accelerated in Q2 and it will take time to offset the effects through productivity gains and price increases, which will be made as from the end of this year.
Copyright (c) 2021 CercleFinance.com. All rights reserved.