Reckitt Benckiser: cuts growth forecast, shares down
(CercleFinance.com) - British consumer goods maker Reckitt Benckiser has trimmed its growth forecasts on Tuesday after its first-half performance came in "somewhat below" its expectations.
Citing a slow start to the year and the ongoing turnaround of its health division, RB cut its 2019 net revenue growth target to +2-3% like-for-like, down from +3-4% previously.
The group maintained, however, its target for its adjusted operating margin.
The announcement comes as the group's like-for-like performance was flat in the second quarter, with "disappointing" progress in its health business, the maker of Nurofen painkillers said.
"Our like for like performance in the first half was +1%, somewhat below our expectations," said CEO Rakesh Kapoor.
Reckitt Benckiser said it expects the second half of 2019 to be "back to our more normal level of growth," but its shares still fell in London, down 2.8% in mid-morning trading.
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