Reckitt Benckiser fortunes take a turn as Q4 sales beat analyst estimates

Reckitt Benckiser fortunes take a turn as Q4 sales beat analyst estimates

Reckitt Benckiser has reported 4 percent like-for-like growth in the fourth quarter, better-than-expected results that beat industry expectations of 3.3 percent, according to Bloomberg.

Helped by growth in India and Brazil, the results, which overshadowed a forecast for flat operating margins this year, are said to boost investor confidence in the company. This follows a turbulent three years that saw Reckitt Benckiser face a safety scandal in South Korea, a cyber attack, and manufacturing disruption at its baby-formula factory.

The sales growth has boosted company shares to a two-month high, with the company forecasting 2019 like-for-like growth to be up slightly at 3 – 4 percent.

The results follow the retirement announcement from CEO Rakesh Kapoor, who is due to step down from his role at the end of 2019, having been with the company for eight years.

The search for a successor is underway, with an update on the CEO selection process set for mid-May at the annual shareholder’s meeting.

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