30th Oct 2018 08:17
LONDON (Alliance News) - Reckitt Benckiser Group PLC on Tuesday maintained its annual revenue target as it reported a drop in third quarter revenue due to manufacturing disruption in Europe.
In the three months to September 30, the consumer goods company posted total net revenue of GBP3.12 billion, down from GBP3.21 billion recorded the year before.
Year-to-date, however, revenue was up at GBP9.26 billion from GBP8.22 billion with strong performances from North America and developing markets.
Reckitt said that, while the disruption at its at its European Infant Formula & Child Nutrition manufacturing plant was temporary and resolved within the quarter, it is likely to have some residual impact on the final quarter of the year.
Reckitt Chief Executive Officer Rakesh Kapoor said the disruption occurred "during a period of unusually high market growth" and before the opening of new Australian facilities.
Kapoor said Reckitt has "sufficient momentum and progress" to absorb the disruption and reiterated the company's target of between a 14% and 15% growth in net revenue for the year, as constant rates,
implying like-for-like revenue growth at the upper end of 2% to 3% range.
Shares in Reckitt were down 4.3% at 6,324.00 pence on Tuesday morning.
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