Reckitt Benckiser (RB) has lowered its expectations for sales this year. The British producer of medication, cleaning products and drugstore items did so after revenue grew less rapidly than expected in the third quarter. The company itself speaks of a “disappointing” third quarter.
Whereas RB previously assumed comparable revenue growth of between 2 and 3 percent, that is now only a maximum of 2 percent. The company now foresees a “modest decline” for the adjusted operating profit margin. RB previously assumed a constant margin.
In the third quarter, sales at the Health division fell slightly on a comparable basis. Growth in baby food sales meant that the decline was limited. The detergent division also sold more. Comparable sales of the entire RB increased 1.6 percent to 3.3 billion pounds, excluding approximately 3.8 billion euros. That lagged behind the average expectations of analysts.