Reckitt Benckiser’s (LON:RB) share price has fallen into the red in today’s session as the company trimmed its full-year revenue target following weaker-than-expected performance in the first half of the year. The update comes after the consumer goods giant recently reached a $1.4-billion settlement with the US over a probe into the sales and marketing of Suboxone Film by Indivior.
As of 10:06 BST, Reckitt Benckiser’s share price had given up 3.21 percent to 6,456.00p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.04 percent lower at 7,683.59 points. The group’s shares have given up nearly six percent of their value over the past year, as compared with about a 0.1-percent fall in the Footsie.
Reckitt Benckiser posts interims
Reckitt Benckiser announced in a statement this morning that its like-for-like performance in the second quarter of the year was flat, with a decline in its health segment offsetting a rise in its hygiene home business.
“Our like for like performance in H1 was +1%, somewhat below our expectations,” the company’s outgoing chief executive Rakesh Kapoor commented in the statement, adding that with the slow start to the year and the turnaround in its health division “still work in progress, we are revising our 2019 net revenue target”.
The consumer goods giant now expects to deliver like-for-like growth of between two percent and three percent this year, down from its previous guidance of between three percent and four percent revenue growth.
Analysts on FTSE 100 company
The 20 analysts offering 12-month targets for the Reckitt Benckiser share price have a median target of 7,000.00p, with a high estimate of 9,000.00p and a low estimate of 5,300.00p. As of July 26, the consensus forecast amongst 24 polled investment analysts covering the blue-chip group has it that the company will outperform the market.