By Michael Susin

Reckitt Benckiser Group is scheduled to report results for the third quarter on Wednesday. Here is what you need to know.

SALES FORECAST: The consumer-goods company--which houses Dettol, Harpic and Durex among its brands--is forecast to report a drop in quarterly revenue to 3.41 billion pounds ($4.43 billion) from 3.60 billion pounds the same period a year ago, according to a company-provided market expectations.

PRICE/VOLUME FORECAST: Revenue is anticipated to decline 1.7% on a like-for-like basis, consisting of 3.1% lower volume but a 1.4% price increase, according to the forecast.

Reckitt has seen its sales volumes deteriorate since the third quarter of 2022 as consumer-goods companies struggle to balance prices and volumes. As inflation rose, companies lifted their prices to pass the cost pressures to consumers, often sacrificing sales volumes.

Shares are down more than 11% since the start of 2024.

WHAT TO WATCH

--Reckitt guides for 1%-3% revenue growth on a like-for-like basis for 2024. The company lowered the outlook in July from 2%-4% due to supply disruptions caused by tornado damage at its Mount Vernon, Indiana, warehouse and the impact on its nutrition business. Market expectations stand at 1.5% growth for the year, according to a company-compiled consensus.

--The company recently launched a major overhaul to streamline its business, including a revised leadership from Jan. 1. It is also in talks to dispose some of its home-care brands. The potential sale of brands, including Air Wick air fresheners and Cillit Bang cleaners, could be worth more than 6 billion pounds, Bloomberg reported in September.

--Reckitt has also launched a strategic review of its troubled infant-formula unit Mead Johnson after it was ordered to pay a $60 million compensation in March related to the death of a premature baby that was fed its Enfamil Premature 24 product.

The penalty was announced a few weeks after the group posted an annual profit drop amid disappointing sales. Both events together prompted shares to drop more than 23% and led the stock to reach the lowest level in more than 10 years in mid April.

Write to Michael Susin at michael.susin@wsj.com

(END) Dow Jones Newswires

October 22, 2024 07:01 ET (11:01 GMT)

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