Family items big Reckitt has warned the sale of its Cillit Bang and Air Wick arm is likely to be delayed by market situations because it revealed revenues fell throughout the division.
Reckitt – which put its important dwelling cleansing merchandise enterprise up on the market final summer time as a part of a significant overhaul – mentioned it was nonetheless aiming to promote the division this 12 months, however admitted that “market situations might affect this timeframe”.
The group’s first quarter replace confirmed like-for-like gross sales throughout the important home-based business – which accounts for 13% of group internet revenues – fell 7% to £482 million.
Total revenues at Reckitt grew by lower than anticipated, up 1.1% within the quarter, with shares within the agency down by greater than 4% in early buying and selling on Wednesday.
Offers worldwide are mentioned to have been impacted by current inventory market turbulence amid uncertainty over world tariffs imposed by US President Donald Trump and a mounting commerce battle between the US and China.
By way of the direct affect of tariffs on its enterprise, Reckitt mentioned it was “intently monitoring the evolving scenario round world tariffs and the potential impacts on our provide chain and value base”.
However it mentioned evaluation to date signalled an “immaterial annualised affect” on the group’s price of products bought, which it’s “assured in mitigating over the quick to medium-term by means of plenty of levers”.
“These embody our inflight manufacturing investments, such because the current funding in our Wilson, North Carolina, manufacturing facility, our wonderful model equities with pricing energy, and restricted imports from China into the US,” the group mentioned.
The group’s chief govt Kris Licht has been main a plan to restructure Reckitt, unveiling goals final 12 months to spin off its child formulation enterprise Mead Johnson and promote the important dwelling division.
He needs the agency to give attention to what it calls its “energy manufacturers”, akin to Durex condoms, Gaviscon antacid and Strepsils lozenges.
The agency’s newest figures confirmed that with Mead Johnson and important dwelling stripped out, like-for-like gross sales rose 3.1% within the first quarter.
Mr Licht mentioned: “Our portfolio of high-growth, high-margin energy manufacturers underpins our resilience, and we preserve our outlook for full 12 months 2025 while recognising the tougher macroeconomic outlook.”
Richard Hunter, head of markets at interactive investor, mentioned: “The separation of the Mead Johnson Diet and important houses items are seemingly to offer a mountain to climb, and the present world financial uncertainty given the tariff traumas will seemingly affect on the timing of any gross sales.
“Within the meantime, the 2 items account for round 30% of total revenues, and this vital proportion muddies the waters for the prospects of what ought to finally be a extra targeted and streamlined enterprise.”
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