Reckitt Benckiser LFL growth held back by 'tougher markets' in Q3
Consumer-goods giant Reckitt Benckiser missed analysts' estimates slightly in its third quarter on the back of continuing currency headwinds, while like-for-like (LFL) sales growth was held back by "tougher markets".
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The Anglo-Dutch firm, famous for brands such as Nurofen, Durex and Cillit Bang, said that sales excluding its pharmaceuticals division (RBP) totalled $2.21bn in the three months to 30 September, down 6% from $2.36bn the year before.
LFL sales (ex. RBP) increased by 3% on last year, as strong growth in Russia, the Middle East and Africa (RUMEA), was offset by slower markets in South-East Asia and Latin America. Europe and North America, meanwhile, delivered a "robust" performance, it said.
The consensus forecast was for sales (ex. RBP) of $2.25bn and LFL sales growth of 4%.
RBP, which the company expects to be de-merged and listed on the stock exchange before the year-end, registered sales of $161m, down 16% on the previous year and 9% lower on a LFL basis.
The company reiterated its full-year targets, but said that full-year revenues (ex. RBP) would grow at the "lower end" of the 4-5% range.
Chief executive Rakesh Kapoor said Reckitt "delivered a robust performance in tougher markets in the third quarter".
He said: "Looking ahead, our objective remains to deliver growth which outperforms our markets, although conditions will remain challenging."