Reckitt Benckiser Lowers Sales Guidance Amid North American Slump
Reckitt Benckiser reduced its annual sales growth forecast to 3.5%–4.5% following manufacturing constraints for Lysol and falling consumer demand in North America.
Household goods company Reckitt Benckiser lowered its annual like-for-like sales growth guidance to 3.5%–4.5%, down from a previous forecast of 4%–5%. The company attributed the downgrade to a 1.3% drop in third-quarter sales in North America, where temporary manufacturing constraints limited the supply of Lysol.
In Europe, Australia, and New Zealand, the company implemented selective pricing actions, raising prices by 4% to offset inflation linked to the conflict in Iran and the broader Middle East. While these hikes resulted in a 0.8% rise in like-for-like sales, overall sales volumes in the region fell 3.2% as consumers shifted toward discount retailers.
Reckitt shares fell 6% in Tuesday morning trading following the announcement. Despite the North American miss, the company expects a recovery in the final three months of the year. Market analysts suggested that growth remains broad-based and advised investors not to let the U.S. performance overshadow the company's long-term prospects.
