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Client group Reckitt has launched a strategic evaluation of its toddler components enterprise Mead Johnson and introduced plans to promote a big portfolio of its dwelling care manufacturers, together with Air Wick and Cillit Bang, in an effort to streamline the enterprise.
The corporate will sooner or later report as three divisions: Reckitt, which incorporates the best-performing manufacturers comparable to Nurofen and Gaviscon; Important Dwelling, with the lower-growth homecare manufacturers; and Mead Johnson, the troubled toddler components firm that’s going through litigation within the US.
The sale of the homecare portfolio, which brings in revenues of £1.9bn, and a possible sale of Mead Johnson would depart Reckitt with web revenues of £10bn, in contrast with £14.6bn for the entire group in 2023.
In an echo of Unilever’s technique launched final 12 months, Reckitt stated it might deal with its high-growth, high-margin “energy manufacturers” and described the Mead Johnson enterprise as “non-core”. The corporate added that it was contemplating “all strategic choices to maximise shareholder worth”.
Reckitt stated it might additionally launch a reorganisation and cost-saving programme that will incur a one-off value of £1bn. It additionally minimize its gross sales development expectations for this 12 months, forecasting income to develop by 1 per cent to three per cent in 2024, down from earlier expectations of two per cent to 4 per cent.
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