Reckitt has disclosed a decrease in like-for-like revenue as the firm continues to grapple with post-pandemic challenges. The company reported a -0.5 per cent growth in like-for-like net revenue for the third quarter, although there was a 0.4 per cent increase in revenue for the year ending 30 September.
Overall, the group experienced a four per cent decline in net revenue in the third quarter and a 3.8 per cent drop for the year up to the end of September. Despite this, Reckitt maintains that it is on course to meet full-year targets, with all divisions poised to deliver robust like-for-like net revenue growth in the final quarter, as reported by .
While the company's hygiene and health sectors saw expansion in the third quarter, by 2.1 per cent and 3.2 per cent respectively, its nutrition sector suffered a -17.3 per cent fall in sales on a like-for-like basis. This decline, Reckitt explained, reflected £100m of supply-related issues stemming from the Mount Vernon tornado in July.
Reckitt transformation on track
However, the company asserted that its transformation remains on track. It has devised a new operating structure set for implementation in January 2025, which will organise the company into three divisions: Reckitt, Essential Home, and Mead Johnson Nutrition.
In the forthcoming quarters, Reckitt plans to concentrate on its high-margin Powerbrands while evaluating all options for its non-core Essential Home portfolio and Mead Johnson Nutrition portfolios.
Reckitt has announced a reshuffle in its global leadership team, with all significant senior roles now filled by newly appointed leaders. The firm also highlighted the progress of its share buyback programme, having fulfilled £321m of the planned £1bn buyback initiative revealed earlier this year.
Chief Executive Officer Kris Licht commented on the quarterly figures: "Our third quarter delivery is in line with our guidance at the half year. Health delivered sequential improvement in the quarter and hygiene delivered a solid quarter of growth despite a more competitive market backdrop in developed markets."
Discussing product lines, Licht remarked, "Nutrition was impacted by the Mount Vernon tornado in July, which impacted sales to customers in the quarter, but to a lesser extent than we initially expected. Our categories are resilient, our brands are strong and we are now seeing a more balanced algorithm for growth," adding further insight into the company's resilience and brand strength.
Additionally, Licht remarked on future plans: "We are moving at pace on the execution of reshaping Reckitt through sharpening our portfolio, simplifying the organisation and improving shareholder returns. I look forward to providing further details on our new operating model and future targets with our full-year results update."
