Reckitt Lowers Annual Guidance on Manufacturing Struggles in North America
- On Tuesday, Reckitt Benckiser lowered its annual revenue guidance to 3.5% to 4.5% from 4% to 5% after manufacturing constraints in North America disrupted Lysol supplies. The group reported third-quarter core business growth of 3.3%, missing analyst expectations.
- Chief Executive Kris Licht stated that "while consumer demand for Lysol remains strong, temporary manufacturing constraints limited our ability to fully meet demand." North American sales declined 1.3% in the third quarter as a result.
- Emerging markets grew 8% while Europe returned to 0.8% growth, though China delivered lower-than-anticipated sales in vitamins and supplements. Barclays analyst Warren Ackerman noted the firm "continues to see volatility quarter to quarter" regarding consistency.
- Shares in Reckitt fell 7.1% on Tuesday following the update, as quarterly growth missed the 3.6% analyst forecast. Chief market analyst Chris Beauchamp said Investors shouldnt let the US miss sour them too much on Reckitt prospects.
- Management expects North American trading and Lysol supplies to rebound in the fourth quarter as manufacturing issues resolve. The company pointed to a multi-year U.S. investment of up to $600 million to strengthen supply resilience and accelerate innovation.
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13 Articles
Reckitt reduced its growth projections for the year, impacted by a shrinkage in sales in North America due to temporary restrictions on the manufacturing capacity of Lysol brand products. Exclusive material for subscribers. To have full access, access the material link and register.
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Reckitt lowers annual guidance on manufacturing struggles in North America
Dettol maker Reckitt lowered its annual revenue forecast on Tuesday and \u200breported revenue growth below analyst expectations in the third quarter, hampered by a challenging consumer environment and manufacturing constraints in its North \u200cAmerican market.
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