Reckitt Benckiser cites macroeconomic conditions amid flat first quarter sales

Products produced by Reckitt Benckiser Vanish Finish Dettol and Harpic are seen in London

Products produced by Reckitt Benckiser Vanish Finish Dettol and Harpic are seen in London

The acquisition of Mead Johnson is on track and should be completed by the end of the third quarter, the company said.

The announcement came as the company, whose brands include Dettol, Durex, and French's ketchup and mustard, reported flat first quarter sales. I expect our growth trajectory to improve as we progress through the year and we remain on track to achieve our full year net revenue target of three per cent like-for-like growth.

Reckitt recently launched a review of its £2 billion foods business, which could see the division behind Frank's RedHot sauces being sold off to help fund the deal.

Earlier this month Reckitt announced a "strategic review" of its food business.

A disposal is being considered to help fund its US$16.6bn takeover of USA baby food maker Mead Johnson, announced at the start of February.

Baby milk formula is big business.

Geographically, total revenue in Europe, North America and Australasia rose by 12%, while growing by 21% in the Middle East, Turkey, Africa, Asia and Latin America. This included a 15% rise for its Health unit, 18% for the Hygiene unit, and 11% for the Home unit.

Consumer products group Reckitt Benckiser PLC (LON:RB.) saw its shares drop in early trading after it said its like-for-like sales were flat in the first quarter reflecting challenging market conditions as it progresses a strategic review of its food business and an expansion in to the USA baby food industry.

The foods arm, which had sales a year ago of £411mln, could fetch more than £2.4bn if sold, according to media reports.

Analysts had expected the first quarter to be weak across the consumer goods sector, due to economic uncertainties and the timing of Easter.

Reckitt also noted that the Indian government is planning to implement a goods & services tax from the beginning of July, which it expects to result in a GBP40 million hit to net revenue in its full-year accounts.

"We don't think for one minute that Reckitt's brands are losing their fundamental appeal, or that the company has lost its ability to innovate".

Recommended News

  • The intertwined fates of Diego Costa, Romelu Lukaku, and Tammy Abraham

    The intertwined fates of Diego Costa, Romelu Lukaku, and Tammy Abraham

    The Spain global was heavily linked with a move to China's lucrative top flight in January but made a decision to stay at Stamford Bridge.
    Rangers rediscover MSG winning formula to even series

    Rangers rediscover MSG winning formula to even series

    The Rangers knew they needed to be better after last game, and they certainly delivered tonight backed by Henrik Lundqvist . Head coach Claude Julien announced that defenseman Alexei Emelin won't be playing in Game 3 due to a lower-body injury.
    Trump admin orders review of Iran nuclear deal sanctions

    Trump admin orders review of Iran nuclear deal sanctions

    Notwithstanding, Iran remains a leading state sponsor of terror through many platforms and methods. Trump has repeatedly expressed his disdain for the agreement.
  • The Worst Tech Gadgets

    Take a look at some of them below. 2016 Samsung Galaxy Note 7 During the month of August 2016, Samsung Galaxy Note 7 was released. It was said to be capable of displaying stereoscopic 3D graphics, promising players they could enjoy their own private universe.
    NEW INFORMATION: Reward for manhunt suspect increases to $20K

    NEW INFORMATION: Reward for manhunt suspect increases to $20K

    The FBI says that they have increased the reward to $20,000 for information leading to the whereabouts of Joseph Jakubowski. The sheriff's office also released a video that appears to show Jakubowski mailing a package to Trump.
    Heartbreaking pictures of injured children after devastating Aleppo auto  bomb

    Heartbreaking pictures of injured children after devastating Aleppo auto bomb

    The global community has denounced a deadly auto bombing that killed 126 people of a convoy of Shiite evacuees in northern Syria. The evacuation has moved the country closer to a division of its national population along loyalty and sect lines.
  • Kentucky Derby newest odds and predictions

    Kentucky Derby newest odds and predictions

    The horse almost caught Always Dreaming in Florida but finished the second. - Gunnevera is among the favorites in a betting line. The May’s first weekend has already passed and real fans of races started their preparations for the Derby in Kentucky.
    Tesla Motors Inc (NASDAQ:TSLA) Rises 0.25% in Pre-Session Trading

    Tesla Motors Inc (NASDAQ:TSLA) Rises 0.25% in Pre-Session Trading

    Following the completion of the sale, the director now owns 170,546 shares in the company, valued at approximately $48,823,908.88. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link .
    China's 1Q economic growth ticks higher to 6.9 percent

    China's 1Q economic growth ticks higher to 6.9 percent

    The big news out of China is all about its economy, namely the estimate-beating first quarter GDP growth of 6.9% reported today. "We need to watch closely whether China's top leadership will send a stronger signal to tighten monetary policy shortly".
  • Top 10 Movies at the Box office during the weekend 8-10 September

    Top 10 Movies at the Box office during the weekend 8-10 September

    Did you know online casino software providers also offer blockbuster casino games? You can visit Canada casino online for reviews. The animation has been at the box office for three weeks and managed to generate a domestic total gross of $15.8 million.
    Trump on Paris attack:

    Trump on Paris attack: "What can you say? It just never ends"

    "It just never ends", he said of global terror threats after a gunman opened fire near the Franklin Roosevelt subway station. The latest incident came just three days after a tense first round of elections for a new French President.
    Iran's Hassan Rouhani registers for second term in upcoming presidential elections

    Iran's Hassan Rouhani registers for second term in upcoming presidential elections

    One big question is why Raisi would risk a run for the presidency if he has ambitions to become supreme leader as many speculate. Raisi is also prosecutor of the Special Cleric Court, which deals with the offenses of clerics.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.