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Fashion & brands

Reckitt Benckiser posts drop in revenue as nutrition wing weighs

Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB)'s sales fell over the third quarter as revenue from its nutrition wing slumped.

Like-for-like revenue declined by 0.5% to £3.46 billion, the consumer goods firm said, or by 4% on a statutory basis.

Though sales across Reckitt’s hygiene and health wings picked up by 2.1% and 3.2% respectively, revenue from nutrition products offset this with a 17.4% drop.

This was primarily due to a £100 million supply-related hit from the Mount Vernon tornado in July, Reckitt said, “which reflects a better-than-expected recovery of inventories”.

Foreign exchange headwinds over the year so far also dealt a 3.9% hit.

“Our [third quarter] delivery is in line with our guidance at the half year,” chief executive Kris Licht commented. “Our categories are resilient, our brands are strong and we are now seeing a more balanced algorithm for growth.”

Licht added plans to sharpen Reckitt’s portfolio and simplify the business were “moving at pace”, which will see Reckitt restructured into three divisions.

These include Reckitt, Mead Johnson Nutrition and Essential Home segments, with the company set to exit the latter by late next year.

Some £321 million worth of shares had also been repurchased as of October as part of a £1 billion buyback programme.

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