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Reckitt Benckiser saw like-for-like revenue fall in the third quarter as the company looks to simplify operations to return to long-term growth.
Reckitt’s quarterly like-for-like revenue fell 0.5%, better than the 1.7% decline predicted by analysts.
Overall, the group reported a net revenue decline of 3.8% for the year to the end of September.
The company, owner of brands including Dettol and Durex, said it was on track to meet full-year targets.
CEO Kris Licht said its Q3 performance is in line with guidance at the half year and it is on track to deliver net revenue and profit targets for 2024.
“Our categories are resilient, our brands are strong and we are now seeing a more balanced algorithm for growth.”
Revenue in health and hygiene grew in Q3 by 3.2% and 2.1% respectively, although Reckitt’s nutrition arm saw sales sink 17.3% due a £100m hit from supply-related challenges after a tornado hit its third-party warehouse in Indiana in July. The warehouse was an important site for the Mead Johnson Nutrition business and contained a mix of raw materials and finished products.
Despite the slowdown, the company said its transformation was on track and its new operating model and structure would be deployed by January 2025.
The revamp will see the company organised around three divisions: Reckitt, Mead Johnson Nutrition, and Essential Home to “simplify the organisation for accelerated growth and value creation.”
The Essential Home portfolio will be sold, however, with Reckitt adding this is on track to be completed by the end of 2025.
Morning update
Heineken has fallen short of expectations on beer sales due to a decline in the Americas and Asia Pacific.
The brewer reported volumes rose 0.7% in the third quarter, missing estimates of 2% compiled by Bloomberg.
Beer volumes for the full year to September were up 1.6% with growth in Europe and Africa & Middle East compensating for slight declines in the Americas and Asia Pacific.
Revenue for the quarter hit €9bn, bringing the total for the year to €27bn.
“We delivered a solid quarter of balanced growth, organically growing beer volume 0.7% and net revenue (beia) 3.3%. Our business continues to deliver in line with our plan in aggregate, despite some markets navigating challenging consumer and industry trends,” said CEO Dolf van den Brink.
Its premium beer volumes grew 4.5% led by Brazil, South Africa, and India. Its core Heineken beer grew volumes 8.7% with double-digit growth in 30 markets. Non-alcoholic beer & cider grew 11%.
Heineken reiterated its full year expectations of 4% to 8% operating profit.
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