The North American market bore the brunt of the shortfall, with regional like-for-like net revenue slipping 1.3% in the third quarter. Chief Executive Officer Kris Licht attributed the disruption to temporary capacity constraints, promising investors that production has already begun to stabilize in October. The firm expects a recovery in the final quarter of the year, backed by a broader strategy to modernize its infrastructure after years of underinvestment in manufacturing capabilities.
In section Market Quotes
Reckitt Shares Dip as Lysol Supply Woes Force Outlook Cut
A 4.2% slide in London-listed shares on Tuesday followed Reckitt Benckiser’s decision to trim its full-year revenue growth forecast. The consumer-goods giant, struggling with manufacturing bottlenecks that choked Lysol supplies, now anticipates core like-for-like growth between 3.5% and 4.5%, down from its previous target of 4% to 5%.
Despite the CEO's assurances, market reaction remained skeptical. Barclays analyst Warren Ackerman labeled the development an unpleasant surprise, noting that the Lysol supply issue directly damaged the company's price-mix performance. RBC’s James Edwardes Jones echoed this sentiment, suggesting the move reinforces a growing perception of unpredictability surrounding the brand. Reckitt reported third-quarter core revenue of 2.69 billion pounds, or $3.59 billion, while facing additional pressure from shifting U.S. consumer spending habits as households prioritize fuel costs over discretionary goods.
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