Reckitt Benckiser: third-quarter growth misses estimates

(CercleFinance.com) - Consumer goods maker Reckitt Benckiser reported lower-than-expected growth for third-quarter on Tuesday, suffering from the weak performance of its health business.


The owner of the Nurofen, Gaviscon and Strepsils brands said that sales rose just 1.6% like-for-like in the past quarter.

Like-for-like performance at its health division was down 0.3%, due to continued share loss and cautious retailer purchasing ahead of the flu season, the group said.

"RB's performance in third-quarter was disappointing," commented CEO Laxman Narasimhan.

The British company said it now expects full-year sales growth of up to 2% (like-for-like), citing the reduction in retailer inventory levels of seasonal products and the uncertainties of the season and associated stocking.

Full-year adjusted operating margins are expected to see "a modest decline," it added.

The London-listed shares were hit pretty badly after this report, down 4.7%.

Copyright (c) 2019 CercleFinance.com. All rights reserved.