Reckitt Benckiser revised its full year like-for-like net revenue target on Tuesday in its first half results for 2019.
The consumer goods company said that its full year like-for-like net revenue target has been revised to +2-3% from +3-4%, in order to reflect the slow start to the year.
There have been no changes to its adjusted operating margin expectations.
Like-for-like performance in the second quarter was flat, Reckitt Benckiser added.
In its health business, second quarter like-for-like sales dropped 1% with a slowdown in China market growth.
“Our like for like performance in H1 was +1%, somewhat below our expectations. Hygiene Home delivered another quarter of consistent top line growth but progress in Health in Q2 was disappointing,” Rakesh Kapoor, Chief Executive Officer of Reckitt Benckiser, commented in a company statement.
“We have now been operating in RB 2.0 for 18 months and have made some important achievements. Hygiene Home has been unleashed and is delivering consistently. But on our journey to be a world leader in consumer health, we have work to do to deliver consistent financial performance,” the Chief Executive Officer continued.
“However, we believe that much of this is behind us and strong plans are in place to restore growth, including an exciting innovation pipeline such as Mucinex Night Relief and Enfa Grass Fed. We are further stepping up our investment in BEI and medical marketing to drive our growth.”
“We therefore expect H2 to be back to our more normal level of growth. Our work to create two structurally independent business units continues to progress well and remains on track for completion around mid-2020.”
During the period, Reckitt Benckiser announced the appointment of the PepsiCo Executive Laxman Narasimhan as its new CEO. Company Chairman Chris Sinclair said that the company as made “good progress during the quarter in reducing uncertainty” with the new appointment.
Earlier this year, the company posted a 1% rise in first quarter sales, but expected to see “improving growth” during the remainder of the year.
Shares in Reckitt Benckiser Group plc (LON:RB) were trading at -2.10% as of 12:05 BST Tuesday.