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Reckitt Benckiser cuts full-year forecast again as new CEO takes over

The Durex condom and Lysol disinfectant maker said on Tuesday it now expected full-year like for like sales growth to range from flat to up 2%, down from its previous target of 2% to 3%, which marked its second forecast cut this year.

Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

British household goods maker Reckitt Benckiser has cut its full-year sales forecast for the second time this year, blaming a drop in retail orders for Mucinex in the United States and a drop in demand for its Enfamil baby products in China.

The Durex condom and Lysol disinfectant maker said on Tuesday it now expected full-year like for like sales growth to range from flat to up 2%, down from its previous target of 2% to 3%, which marked its second forecast cut this year.

The company also said it expected to see a modest decline in adjusted operating margins for the year as it pours more money into its brands. The company had earlier expected margins to be at the same level as last year.

Reported sales rose 5.3% in the third quarter to 3.29 billion pounds ($4.3 billion), missing analysts' forecast of 3.32 billion pounds, according to a company supplied consensus.

Reckitt blamed cautious purchasing of its Mucinex and Delsym cold and flu products by U.S. retailers ahead of the flu season and a drop in demand for its Enfamil baby food products in China for its weak performance in the three month period .

The quarterly report is the first for new Chief Executive Laxman Narsimhan who in September took over from long-time CEO Rakesh Kapoor.

Reckitt Benckiser Group Plc

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"RB's performance in Q3 was disappointing," Narsimhan, the former PepsiCo executive said in a statement. "I am prioritising execution and operational performance as a matter of urgency."

($1=0.7710 pounds) (Reporting by Siddharth Cavale in London Editing by Clarence Fernandez and David Holmes)


Copyright (2019) Thomson Reuters. This article was written by Siddharth Cavale from Reuters and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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