Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) will offer up third-quarter results next Wednesday, 23 October, with analysts broadly expecting a drop in sales.
Barclays analysts forecast organic sales growth to have fallen by 1.2% over the quarter as weaker prices offset volume growth.
“We expect Reckitt to have turned more promotional in [the third quarter] in response to competitor pressure,” the bank said ahead of the consumer goods firm’s earnings.
Such a drop would come after comsumer goods colleague Nestle trimmed its full-year guidance on slower-than-expected sales growth over the first nine months of the year.
This was despite efforts by the KitKat maker to slow price rises after recent years of surging costs had seen consumers increasingly turn to cheaper non-branded goods.
Barclays noted sales of Reckitt’s hygiene products were expected to have climbed by 2.5% over the third quarter, coupled by a 2.5% growth in health goods.
Sales across its nutrition wing were forecast to be 21% lower though, leaving Barclays anticipating a “major reset” before the end of the year.
“Reckitt's investment case has a high degree of complexity as it attempts to navigate another strategic transition while resolving legal risk and dealing with competitive end markets,” Barclays said.
This was likely reflected through its current share price, Barclays added, with an ‘overweight’ rating being reiterated and a 5,815p target set.
Shares have fallen 13.3% over the year so far to 4,732p.