Reckitt Benckiser: third-quarter growth misses consensus

(CercleFinance.com) - Consumer goods maker Reckitt Benckiser reported a slower-than-expected organic growth in the third quarter, hurt by temporary disruptions in manufacturing.


The maker of Durex condoms and Nurofen painkillers said like-for-like sales rose 2% in the past quarter.

This compares with the consensus of 4%, despite an easy comparison basis, analysts at UBS said.

"Mead Johnson manufacturing problems are to blame," UBS explained in a note.

Indeed, Reckitt acknowledged that quarterly numbers were impacted by a temporary manufacturing hitch at its European Infant Formula and Child Nutrition (IFCN) plant.

On a reported basis, the British company said sales rose 13% to 3.1 billion pounds. It reiterated its 2018 target for revenue growth of +14%-15% at constant rates.

The London-listed shares are currently down 4.4% after this trading update.

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