Reckitt Benckiser: health unit disappoints, shares drop

(CercleFinance.com) - Reckitt Benckiser said it had a "solid start overall" in the first quarter, but cited "weakness" in some of its health brands, which has resulted in its shares falling sharply this Friday.


Like-for-like sales at the group, which makes Finish dishwashing products, Air Wick air fresheners and Nurofen painkillers, grew 2% in the first quarter.

The group - which has been operating under a new organisational structure since the acquisition of Mead Johnson Nutrition - said that the performance of the MJN business is progressing well.

However, the unit's growth is being offset by weakness at some of the company's health wellness and health hygiene brands, it said.

In particular, Scholl is "significantly below" the prior year, meaning that Reckitt is now addressing the performance through acceleration of the pipeline, penetration improvement programmes and streamlining the product range.

Despite this, the group said it remains well on track to achieve full-year net revenue targets.

Investors apparently did not take the same view: Reckitt shares are down 5.2% at 5,485 pence this morning, the sharpest faller in the FTSE 100 index.

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