Latest news with #KrisLicht
Time of India
5 days ago
- Business
- Time of India
UK's Reckitt raises revenue outlook after second quarter beats expectations
Consumer goods company Reckitt raised its annual revenue forecast on Thursday after second-quarter net sales growth topped expectations as strength in emerging markets offset weakness in North America and Europe. Shares jumped 10% to their highest level since early 2024 and were headed for their biggest one-day percentage gain since 2000. Reckitt, the maker of Durex condoms and Lysol cleaning products, is pivoting to focus on its 11 so-called "power brands" under CEO Kris Licht, as the sector grapples with weak demand and intense competition. The company reported like-for-like quarterly net revenue growth of 1.9%, compared with 1.7% forecast in a company-compiled consensus. Reckitt also announced a new share buyback programme of 1 billion pounds over the next 12 months. Growth in North America and Europe fell short of expectations, dragged by a challenging consumer backdrop and the expected shelf reset of its flu relief medicine Mucinex due to reformulation. But strong sales in China, India and Latin America made up for weakness in those key markets. Among Reckitt's other well-recognised brands are Strepsils throat lozenges and Harpic bathroom cleaning products. "We delivered excellent growth in emerging markets and navigated a challenging consumer environment in our developed markets," Licht said in a statement. Reckitt raised its 2025 like-for-like net revenue growth forecast for its core business to above 4%, from between 3% and 4% expected earlier. It now expects overall group like-for-like net revenue growth between 3% and 4% for the year, compared with an earlier forecast of 2% to 4% growth. The company last week sold a majority stake in its Essential Home business to private equity firm Advent for $4.8 billion. It is also looking at strategic options for its Mead Johnson division, which is the subject of a number of baby formula lawsuits in the U.S. Reckitt posted operating profit of 1.71 billion pounds ($2.32 billion) for the six months ended June 30, beating analysts' average expectations of 1.66 billion pounds.
Reuters
24-07-2025
- Business
- Reuters
Reckitt lifts revenue outlook on strong Asia growth, shares surge
July 24 (Reuters) - Consumer goods company Reckitt (RKT.L), opens new tab raised its annual revenue forecast on Thursday after second-quarter net sales growth topped expectations, sending shares soaring, as strength in China and India offset weakness in North America and Europe. Shares jumped as much as 11% to their highest level since early 2024 and were among the biggest gainers on the pan-European STOXX 600 index (.STOXX), opens new tab. Reckitt, the maker of Durex condoms and Lysol cleaning products, is pivoting to focus on its 11 so-called "power brands" under CEO Kris Licht, as the sector is faced with weak demand and fierce competition. The company reported like-for-like quarterly net revenue growth of 1.9%, above the 1.7% forecast in a company-compiled consensus. It also announced a new 1 billion pounds share buyback over the next 12 months. Growth in North America and Europe lagged expectations, hit by a challenging consumer environment and the expected shelf reset of its flu medicine Mucinex due to reformulation. Licht said there was some stabilisation in those regions in the second quarter, but consumption remained "suppressed". "Even though consumption is a bit lower in our categories, we're still seeing some growth, and people are still spending. It's just much more measured," he said, referring to North America and Europe. But strong sales in China, India and good growth in Brazil, Colombia, Indonesia and Malaysia made up for weakness in developed markets. Chinese consumers were responding well to new innovation behind the Dettol brand, Licht said. Reckitt raised the like-for-like 2025 net revenue growth forecast for its core business to above 4%, from a 3% to 4% range previously. "A beat and raise is a rare occurrence in this market," said analysts at JPMorgan in a note. Reckitt now expects overall group like-for-like net revenue growth of 3% to 4% for the year, up from the previous 2% to 4%. The share price was last up 9%, heading for its biggest one-day percentage gain since November 2008. Last week, Reckitt sold a majority stake in its Essential Home business to Advent for $4.8 billion. It is also exploring options for its Mead Johnson unit, which faces several baby formula lawsuits in the U.S. The U.S. litigation may have some impact on timing of the eventual exit of Mead Johnson, Licht said. Essential Home and Mead Johnson, which are considered non-core, underperformed during the quarter. Reckitt posted operating profit of 1.71 billion pounds ($2.32 billion) for the six months ended June 30, beating analysts' average expectations of 1.66 billion pounds. Some investors worry Reckitt is more exposed than rivals to U.S. tariffs due to lower U.S. manufacturing capacity compared to Haleon (HLN.L), opens new tab and Unilever (ULVR.L), opens new tab. Once its new factory in the U.S. state of North Carolina becomes operational in 2027, the share of local U.S. sales could rise to 75% from 57%, Reckitt has previously said. Licht said he is considering further U.S. investments to "increase capacity and support innovation." ($1 = 0.7368 pounds)
Reuters
24-07-2025
- Business
- Reuters
UK's Reckitt raises revenue outlook after second quarter beats expectations
July 24 (Reuters) - Consumer goods company Reckitt (RKT.L), opens new tab raised its annual revenue forecast on Thursday after second-quarter net sales growth topped expectations as strength in emerging markets offset weakness in North America and Europe. Shares jumped 10% to their highest level since early 2024 and were headed for their biggest one-day percentage gain since 2000. Reckitt, the maker of Durex condoms and Lysol cleaning products, is pivoting to focus on its 11 so-called "power brands" under CEO Kris Licht, as the sector grapples with weak demand and intense competition. The company reported like-for-like quarterly net revenue growth of 1.9%, compared with 1.7% forecast in a company-compiled consensus. Reckitt also announced a new share buyback programme of 1 billion pounds over the next 12 months. Growth in North America and Europe fell short of expectations, dragged by a challenging consumer backdrop and the expected shelf reset of its flu relief medicine Mucinex due to reformulation. But strong sales in China, India and Latin America made up for weakness in those key markets. Among Reckitt's other well-recognised brands are Strepsils throat lozenges and Harpic bathroom cleaning products. "We delivered excellent growth in emerging markets and navigated a challenging consumer environment in our developed markets," Licht said in a statement. Reckitt raised its 2025 like-for-like net revenue growth forecast for its core business to above 4%, from between 3% and 4% expected earlier. It now expects overall group like-for-like net revenue growth between 3% and 4% for the year, compared with an earlier forecast of 2% to 4% growth. The company last week sold a majority stake in its Essential Home business to private equity firm Advent for $4.8 billion. It is also looking at strategic options for its Mead Johnson division, which is the subject of a number of baby formula lawsuits in the U.S. Reckitt posted operating profit of 1.71 billion pounds ($2.32 billion) for the six months ended June 30, beating analysts' average expectations of 1.66 billion pounds. ($1 = 0.7368 pounds)
Reuters
24-07-2025
- Business
- Reuters
Reckitt's quarterly sales beat expectations on emerging market boost
July 24 (Reuters) - Consumer goods company Reckitt (RKT.L), opens new tab topped second-quarter like-for-like net sales growth expectations on Thursday, helped by strength in emerging markets. The maker of Durex condoms and Lysol cleaning products reported the total group's like-for-like net revenue growth of 1.9% for the quarter, compared with 1.7% expected in a company-compiled consensus. Reckitt raised its 2025 like-for-like net revenue growth forecast for its core business to above 4%, from between 3% and 4% expected earlier. Reckitt posted operating profit of 1.71 billion pounds ($2.32 billion) for the six months ended June 30, above analysts' average expectations of 1.66 billion pounds. "We delivered excellent growth in Emerging Markets and navigated a challenging consumer environment in our Developed Markets," CEO Kris Licht said in a statement. ($1 = 0.7368 pounds)
Irish Examiner
18-07-2025
- Business
- Irish Examiner
Reckitt to sell homecare unit including Air Wick and Cillit Bang for $4.8bn
Reckitt Benckiser agreed to sell most of its homecare business to private equity firm Advent International for an enterprise value of up to $4.8bn (€4.12bn) as the UK consumer goods company focuses on faster-growing operations. Reckitt said it will retain a 30% stake in the business, whose brands include Air Wick air fresheners and Cillit Bang cleaners. The enterprise value includes up to about $1.3bn (€1.1bn) of contingent and deferred consideration, the company said on Friday. Shares of Reckitt rose as much as 2.3% in early London trading before paring back some of the gains. The stock is up nearly 14% in the past 12 months Chief executive Kris Licht last year announced plans to sell some of Reckitt's non-core homecare brands and review options for its infant formula business. The proposed sale was part of his strategy to streamline Reckitt and focus on faster growing parts of the business, after a difficult few years where consumer goods companies have had to contend with stretched consumer budgets and shoppers trading down to unbranded products. Reckitt's homecare unit was boosted during the pandemic when demand for cleaners and disinfectants soared, but those benefits have diminished. The company now expects faster growth from consumer-health labels like Strepsils lozenges, Durex condoms and Mucinex cold remedies, while retaining better performing home-care brands like Lysol and Dettol. Reckitt expects to pay a special dividend of $2.2bn (€1.89bn) to shareholders following the completion of the deal, which is expected by December 31. It will also incur one-time costs of about $800m related to the transaction. Barclays and Citigroup advised Advent, while Goldman Sachs and Morgan Stanley were lead financial advisers to Reckitt. The valuation for the businesses being sold is below the initial $8bn Reckitt sought when it put the brands up for sale last year. Reckitt's sale process was hit with anxiety around US tariffs, which has cast uncertainty over the the outlook for global businesses with international manufacturing. The deal has been structured so that the greater risk in the current market environment is shared between the two parties, with Reckitt retaining a stake and needing to hit certain milestones to generate the full payout. With a lot resting on a successful execution of a deal for the homecare assets this outcome should still 'be a boost to management's credibility,' according to James Edwardes Jones and Wassachon Udomsilpa, RBC analysts. They said it will enable investors to focus more closely on the core Reckitt business in a note to clients. The deal will be financed with about $2.3bn of term loans, denominated in euro and dollars, underwritten by a group of banks and it's expected to be syndicated to institutional investors post summer. In March, Reckitt said it expects modest sales growth this year as it reshapes the business — a move it said would deliver a significantly stronger performance starting in 2026. The infant formula unit, created by the $17bn acquisition of Mead Johnson in 2017, remains a sore point for Reckitt. Licht acknowledged last year that the unit, which has been hit by legal woes in the US, hasn't always been a natural fit in the group. Bloomberg
