Reckitt Benckiser reforms business model after yet more sales woes

Reckitt Benckiser reforms business model after yet more sales woes

British consumer goods company Reckitt Benckiser has announced it is to restructure its health and hygiene home divisions following news of yet another sales forecast cut.

There will be two new divisions as part of the restructure: RB Health, which will be headed up by Chief Executive Rakesh Kapoor, and will comprise brands such as Durex, Mead Johnson infant milk and Nurofen, and RB Hygiene Home, which will be run by Rob de Goot and include brands such as Air Wick and Vanish.

Alongside the restructure comes ambitious sales goals, with Kapoor aiming to grow the businesses to outperform the market, which is growing at 2 percent.

The decision to re-work the company’s inner divisions comes amidst warnings that it is on course for no sales growth at all during 2017, the first time since 1999, according to the Telegraph.

The six consecutive weak quarter for the company, Reckitt Benckiser has had a series of misfortunes this year, including a cyber-attack in June that unsettled manufacturing and shipping, the failed launch of Scholl footcare innovation and a South Korean boycott of its products.

According to market speculation the restructure could indicate the initial moves to sell off the lower-performing home hygiene division as a way in which to finance a $5 billion take-over of Pfizer’s consumer health division.

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