Reckitt Benckiser: third-quarter growth misses consensus
(CercleFinance.com) - Consumer goods maker Reckitt Benckiser reported a slower-than-expected organic growth in the third quarter, hurt by temporary disruptions in manufacturing.
The maker of Durex condoms and Nurofen painkillers said like-for-like sales rose 2% in the past quarter.
This compares with the consensus of 4%, despite an easy comparison basis, analysts at UBS said.
"Mead Johnson manufacturing problems are to blame," UBS explained in a note.
Indeed, Reckitt acknowledged that quarterly numbers were impacted by a temporary manufacturing hitch at its European Infant Formula and Child Nutrition (IFCN) plant.
On a reported basis, the British company said sales rose 13% to 3.1 billion pounds. It reiterated its 2018 target for revenue growth of +14%-15% at constant rates.
The London-listed shares are currently down 4.4% after this trading update.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The maker of Durex condoms and Nurofen painkillers said like-for-like sales rose 2% in the past quarter.
This compares with the consensus of 4%, despite an easy comparison basis, analysts at UBS said.
"Mead Johnson manufacturing problems are to blame," UBS explained in a note.
Indeed, Reckitt acknowledged that quarterly numbers were impacted by a temporary manufacturing hitch at its European Infant Formula and Child Nutrition (IFCN) plant.
On a reported basis, the British company said sales rose 13% to 3.1 billion pounds. It reiterated its 2018 target for revenue growth of +14%-15% at constant rates.
The London-listed shares are currently down 4.4% after this trading update.
Copyright (c) 2018 CercleFinance.com. All rights reserved.