Shares in Reckitt Benckiser (LON:RB) have fallen deep into the red in today’s session, as the group revealed that a manufacturing disruption had hurt its performance in the third quarter of the year. The maker of Durex condoms and Vanish detergent, however, reaffirmed its full-year forecasts.
As of 09:32 BST, Reckitt Benckiser’s share price had given up 4.84 percent to 6,291.00p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.13 percent higher at 7,035.77 points. The group’s shares have lost more than seven percent of their value over the past year, as compared with about a six-percent dip in the Footsie.
Reckitt Benckiser posts results
Reckitt Benckiser announced in a statement this morning that its like-for-like growth in the third quarter of the year was two percent, pressured a six-percent like-for-like drop in the Infant Formula and Child Nutrition (IFCN) business, which was impacted by a temporary manufacturing disruption at the group’s European IFCN plant.
Proactive Investors reports that analysts at UBS had expected Reckitt to report +3.7-percent organic sales growth in the quarter.
Reckitt’s chief executive officer Rakesh Kapoor meanwhile reassured investors that the group had “sufficient momentum and progress in our business to absorb this temporary manufacturing disruption,” and therefore reiterated its full-year “target of +14-15% total net revenue growth at constant rates”.
Analysts on FTSE 100 group
The 18 analysts offering 12-month price targets for Reckitt Benckiser for the Financial Times have a median target of 6,962.50p on the shares, with a high estimate of 9,000.00p and a low estimate of 5,100.00p. As of October 26, the consensus forecast amongst 22 polled investment analysts covering the consumer goods group has it that the company will outperform the market.