Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) shares opened 7% lower after the Anglo-Dutch consumer products group's fourth-quarter performance fell short of expectations, and an understatement in trade spend that affected its full-year net revenue figure.
This underperformance was attributed to reduced sales of cold and flu products during the season.
Despite this setback, Reckitt said it remains optimistic about the future, projecting a 2-4% increase in like-for-like net revenue growth for the upcoming year, with particular confidence in its Health and Hygiene divisions.
The company's recent financial review revealed a £55 million discrepancy due to previously underestimated trade expenses in two Middle Eastern markets.
This adjustment led to a slight decrease in the year's adjusted operating profit from £3.44 billion to £3.37 billion.
Reckitt has addressed this issue, attributing it to the actions of a few employees, and has taken disciplinary measures, assuring that it does not affect its outlook for 2024 or its medium-term objectives.
In the first few minutes of trading the stock was down 410p at 5,428p.