Reckitt Benckiser has reported weak third quarter results with a like-for-like year on year slow down, a result that’s put largely down to the continued fall out of the boycott in South Korea.
Reporting a lower-than-expected 2 percent Q3 sales growth, the personal care company is still feeling the effect of scandal in South Korea whereby consumers are continuing to boycott the company following the 96 deaths caused by its humidifier disinfectant between 2001 and 2011.
The growth fell short of the 4 percent increase reported for the year as a whole to date, despite the company benefitting from the falling pound.
In fact, the fallout of the Brexit vote helped the company achieve a revenue increase of 17 percent. Reckitt Benckiser CEO Rakesh Kapoor said, “In an environment where market growth rates have softened, we continue to make good strategic progress in all of our power markets, particularly in India, and in China where we are driving strong development of our e-commerce channels.
“We also had broad-based growth across our consumer health brands and continued improvement in our hygiene portfolio.”
The Scholl brand also contributed to the disappointing results, with the company joining Unilever in discussing tough conditions such as weaker consumer demand and slowing emerging markets.