Reckitt Benckiser decides to divide in a bid to rule after sales warning

Revenue in Reckitt’s core business fell by 1 per cent to £3.2 billion during the third quarter
Revenue in Reckitt’s core business fell by 1 per cent to £3.2 billion during the third quarter
REUTERS

Reckitt Benckiser has issued its second sales warning this year and unveiled plans for another corporate shake-up.

The maker of Cillit Bang and Nurofen has become the latest consumer goods group to warn about volatile consumer demand as revenue in its core business fell by 1 per cent to £3.2 billion during the third quarter, missing the market’s expectations of a 0.5 per cent gain.

The fall in revenue followed hard on the heels of a 2 per cent drop in sales in the second quarter — its worst quarterly performance on record — and is its sixth successive quarter of weak sales.

Such disappointing performance has prompted Reckitt to cut its full-year outlook again. It is now targeting flat like-for-like net revenue in a