Reckitt Lowers 2024 Sales Forecast Amid Supply Disruptions

British consumer goods group Reckitt revised its full-year sales growth forecast for 2024 due to supply disruptions, particularly in its infant formula business, after a tornado damaged a key U.S. warehouse. The company also missed net sales growth expectations for the second quarter.

British consumer goods group Reckitt has revised down its full-year sales growth forecast for 2024 due to supply chain disruptions caused by tornado damage at a third-party warehouse in the United States.

Reckitt, renowned for Dettol and Lysol disinfectants, also failed to meet like-for-like net sales growth expectations for Q2. The Mount Vernon warehouse in Indiana, critically damaged on July 9, was pivotal for Reckitt's Mead Johnson Nutrition segment as it housed both raw materials and finished products.

The company now projects like-for-like revenue growth of 1-3% for the full year, a downgrade from its previous estimate of 2-4%. For the first half of 2024, Reckitt's adjusted operating profit stood at 1.68 billion pounds ($2.16 billion), surpassing the analyst consensus of 1.63 billion pounds.