Reckitt has reported a drop in like-for-like revenue as the company continues to struggle after the pandemic.
For the third quarter the company reported like-for-like net revenue growth of -0.5 per cent, although revenue increased 0.4 per cent for the year to 30 September.
Overall, the group reported a net revenue decline of four per cent in the third quarter and 3.8 per cent for the year to the end of September.
However, the company said it is on track to deliver full year targets, with all businesses well placed to deliver strong like-for-like net revenue growth in the fourth and final quarter of the year.
Reckitt said the decline reflected £100m of supply-related challenges from the Mount Vernon tornado in July.
Reckitt transformation on track
Despite the slowdown, the company said its transformation was on track.
It has developed its new operating structure and this is on track for deployment in January 2025. The company will be organised around three divisions, Reckitt, Essential Home and Mead Johnson Nutrition.
Over the coming quarters, Reckitt said it would continue to focus on its high-margin Powerbrands while it would assess all options for its non-core Essential Home portfolio and Mead Johnson Nutrition portfolios.
In addition, the company said it had refreshed its global leadership committee, with all new senior leadership positions appointed.
Reckitt also said it had completed £321m of the £1bn share buyback programme announced earlier in the year.
Commenting on the results, Kris Licht, chief executive officer, said: “Our third quarter delivery is in line with our guidance at the half year. Health delivered sequential improvement in the quarter and hygiene delivered a solid quarter of growth despite a more competitive market backdrop in developed markets.
“Nutrition was impacted by the Mount Vernon tornado in July, which impacted sales to customers in the quarter, but to a lesser extent than we initially expected. Our categories are resilient, our brands are strong and we are now seeing a more balanced algorithm for growth,” Licht added.
The boss continued: “We are moving at pace on the execution of reshaping Reckitt through sharpening our portfolio, simplifying the organisation and improving shareholder returns. I look forward to providing further details on our new operating model and future targets with our full-year results update.”