Reckitt misses like-for-like sales expectations, will start $1.2 billion buyback
LONDON (Reuters) — Reckitt, maker of Dettol and Lysol cleaning products, on Wednesday missed third-quarter like-for-like sales expectations despite raising product prices to help offset rising raw material costs, as some shoppers refused to pay more.
The company also said it would start a 1 billion pound ($1.22 billion) share buyback programme «imminently» to take place over the next 12 months.
«We are firmly on track to deliver our full-year targets, despite some tough prior year comparatives that we continue to face in our U.S. nutrition business and across our OTC (over the counter) portfolio in the fourth quarter,» said CEO Kris Licht, who took the helm on Oct. 1.
Reckitt said quarterly like-for-like net sales rose 3.4%, behind the 3.7% growth analysts had expected in a company-supplied poll.
The price/mix for Reckitt's products, which include Nurofen tablets and Durex condoms, rose 7.5%. Volumes declined 4.1% compared with last year, when the recall of a rival U.S.-based company's infant formula boosted sales of Reckitt's Enfamil products in that country.
Volumes otherwise declined 1.6% in Reckitt's hygiene and health businesses combined as shoppers balked at higher product prices.
($1 = 0.8218 pounds)
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