Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Fourth-quarter sales disappoint at Reckitt, shares slide
(Sharecast News) - Shares in Reckitt Benckiser Group tumbled on Wednesday, after fourth-quarter sales missed expectations. The London-listed owner of Durex, Nurofen, Vanish and Dettol, among others, said sales fell 7% in the three months to December end to £3.6bn, or by 1.2% on an underlying basis. Analysts had been expecting like-for-like sales to grow by 1.6%.
Reckitt said that while hygiene sales had risen 5.2% during the three months, health had been hit by the "phasing and shape" of the cold and 'flu season, prompting sales to fall 2%.
Nutrition also continued to struggle, as it lapped a prior year competitor supply issue in the US and specialist baby formula Nutramigen was recalled.
Annually, group revenues rose by 1.1%, or 3.5% on a like-for-like basis, to £14.6bn.
However, Reckitt said it had identified an "understatement of trade spend" in two Middle Eastern markets, which meant full-year net revenues were £55m lower than anticipated.
Full-year operating profits fell 22% to £2.5bn.
As at 0915 GMT, shares in Reckitt were down 10% at 5,254p.
However, the consumer goods firm struck a positive tone looking forward, noting that it was "confident" for the year ahead.
It also forecast like-for-like net revenues growth of 2% to 4% for the group, with mid-single-digit growth for its health and hygiene portfolios.
The nutrition business was forecast to see a mid-to-high single digit decline, Reckitt noted, "as it continues to rebase in the first half of the year and returns to growth later in the year".
Group adjusted operating profit was forecast to grow ahead of net revenue growth.
New chief executive Kris Licht said: "2023 was a year of progress for Reckitt. We delivered a good trading performance in health and hygiene. Nutrition began rebasing and held market leadership in the US.
"Our innovation platforms proved that they can deliver meaningful growth through premiumisation, household penetration and category creation.
"While our performance in the fourth quarter was unsatisfactory, we look to 2024 and beyond with confidence."
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.