Reckitt posts mixed results as Q4 sales miss estimates
By Frank Prenesti
Date: Thursday 06 Mar 2025
(Sharecast News) - Consumer goods maker Reckitt unveiled plans for a reorganisation of its divisions and said it was looking at opportunities for Mead Johnson Nutrition after a mixed 2024 as fourth-quarter sales missed estimates.
The maker of Durex, Dettol and Lysol posted a 1.4% rise in like-for-like net revenue rose, driven by its hygiene and health operations while Nutrition fell 7.3%. Operating profit rose 3% to £3.47bn.
Forth-quarter sales were up 4.6% compared with expectations of 5.3% in a company-compiled poll. Overall for 2025, Reckitt expects group LFL net revenue growth of 2% - 4% against forecasts of 4.4%.
Reckitt said it would reorganise into three reporting units: Core Reckitt, Essential Home, and Mead Johnson Nutrition. It plans to exit Essential Home by the end of 2025.
"We are reshaping Reckitt into a more efficient, world-class consumer health and hygiene company, focused on a portfolio of high-growth, high-margin Powerbrands," said chief executive Kris Licht.
"We are targeting 3% - 4% LFL net revenue growth in Core Reckitt, with a balanced delivery across H1 and H2," he added.
However he added that first-quarter sales would be flat in Europe, but forecast mid-to-high single digit growth in emerging markets.
"In North America, for Q1, we expect low-single digit growth, partially driven by retailer destocking and slower than anticipated ramp up in new capacity to meet stronger Lysol demand."
"We expect low-single digit LFL net revenue growth in Essential Home and Mead Johnson Nutrition in 2025, with both being second half weighted. Both businesses will show LFL net revenue declines in H1."
Reporting by Frank Prenesti for Sharecast.com
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