Reckitt Benckiser Eyes Strategic Shift Amid Supply Chain Woes

Reckitt Benckiser plans to refocus on healthcare and hygiene, considering options for its troubled nutrition business and selling homecare brands by 2025. The firm faced shareholder pressure over its Mead Johnson nutrition division after losing a lawsuit. Shares rose 4% following the strategic announcement.

Reckitt Benckiser announced on Wednesday its intention to evaluate options for its struggling nutrition business and divest a portfolio of homecare brands by 2025, signaling a strategic pivot towards health and hygiene. The decision follows shareholder pressure and litigation issues surrounding its Mead Johnson nutrition unit.

The company's homecare portfolio, which includes brands like Air Wick and Cillit Bang, generated approximately 1.9 billion pounds in sales last year but is no longer considered core to Reckitt's strategy. Investment managers reacted positively, with shares rising over 4% in early trading before settling at a 0.6% increase.

CEO Kris Licht did not dismiss the possibility of selling the nutrition business despite ongoing litigation. The company also plans a share buyback of up to 1 billion pounds and an increased interim dividend, even as supply disruptions impacted forecasts and sales volumes.