started · updated
Reckitt lowers annual sales growth forecast due to Lysol supply issues
Reckitt has lowered its annual core like-for-like net revenue growth forecast to a range of 3.5%–4.5%, down from its previous guidance of 4%–5%. The company cited manufacturing constraints in North America that disrupted Lysol supplies, alongside slower growth in the vitamins, minerals, and supplements category in China.
In the third quarter, Core Reckitt reported like-for-like net revenue growth of 3.3%, missing analyst expectations. While emerging markets saw 8% growth and Europe returned to growth at 0.8%, North American revenue declined by 1.3%. CEO Kris Licht stated that while consumer demand for Lysol remains strong, temporary manufacturing issues prevented the company from fully meeting it.
Following the update, Reckitt shares experienced a significant decline, falling between 6% and 7.1% in early trading. Analysts at Jefferies noted that the Lysol disruption, stemming from production line upgrades, cost approximately 0.3 percentage points of Core Reckitt growth.
Entities
Jefferies · Kris Licht · Lysol · Mead Johnson · Reckitt
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 4 SOURCES] Core Reckitt like-for-like net revenue growth was 3.3% in the third quarter. finchannel.com · www.grocerygazette.co.uk · www.themarketreporter.co.uk · www.finanzen.net
- [● 3 SOURCES] North American revenue declined by 1.3% in the third quarter. finchannel.com · www.grocerygazette.co.uk · www.themarketreporter.co.uk
- [○ 1 SOURCE] The Lysol disruption cost about 0.3 percentage points of Core Reckitt growth. www.themarketreporter.co.uk
- [● 3 SOURCES] Reckitt shares fell by approximately 6% to 7.1% following the announcement. finchannel.com · www.themarketreporter.co.uk · www.finanzen.net
- [● 4 SOURCES] Manufacturing constraints in North America disrupted Lysol supplies. finchannel.com · www.grocerygazette.co.uk · www.themarketreporter.co.uk · www.finanzen.net
- [● 3 SOURCES] Emerging markets like-for-like revenue grew by 8% in the third quarter. finchannel.com · www.grocerygazette.co.uk · www.themarketreporter.co.uk
- [● 4 SOURCES] Reckitt lowered its annual core like-for-like net revenue growth forecast to 3.5%–4.5%. finchannel.com · www.grocerygazette.co.uk · www.themarketreporter.co.uk · www.finanzen.net
- [● 3 SOURCES] Europe saw a return to growth of 0.8% in the third quarter. finchannel.com · www.grocerygazette.co.uk · www.themarketreporter.co.uk