Reckitt Benckiser's new chief executive promised on Tuesday to step up spending on its brands and improve performance after the British household goods maker cut its full-year sales forecast for a second time.

Shares of the Durex condom and Lysol disinfectant maker fell as much as 5.5 per cent to £55.10, the lowest since May last year.

"We are not pleased with where we are and we must consistently deliver," Laxman Narasimhan, who took over from long-time CEO Rakesh Kapoor in September, said on his first call with the investment community.

He said his top priorities were to improve operational performance and build a resilient business model after a series of one-off setbacks kept a lid on growth in recent years.

Narasimhan particularly lamented the performance of the firm's Health business, its largest, where a failed product launch, the nearly $17 billion acquisition of Mead Johnson, and a temporary baby milk factory shut down in the Netherlands, have all caused significant disruption, some lasting to this day.

To fix these issues, he promised to invest more in Reckitt's brands, hire more talent and improve relationships with retailers, distributors and trade partners to head off problems such as inventory destocking, which hit third-quarter results.

Narasimhan said the company would pause any activities that might take attention away from improving operational performance, but added its ongoing RB 2.0 plan, which seeks to split the group into two business units, would not be affected.

The new CEO said he would provide a more detailed long-term strategy at the company's annual results in February.

'Sackcloth and&nbsp;ashes'

Reckitt said it now expected like for like sales growth between flat and up 2 per cent this year, down from its previous target of 2-3 per cent. That was the second cut this year from an initial target of 3-4 per cent growth.

Reported sales rose 5.3 per cent in the third quarter to £3.29 billion, missing analysts' forecast of £3.32 billion, according to a company-supplied consensus.

Reckitt blamed a drop in retail orders for flu products such as Mucinex in the United States and a weak demand for its Enfamil baby products in China on the back of intense competition and declining birth rates.

"What has happened this year and it is abundantly clear is we were not close enough to (the thinking) of those retailers to get a good reading of what was going to happen," outgoing finance chief Adrian Hennah told analysts on a call.

Reckitt said on Monday Hennah would be replaced by Ahold-Delhaize executive Jeff Carr.

Overall, Reckitt's like for like sales growth came in at 1.6 per cent in&nbsp;the third quarter, missing analysts' forecast of 3.2 per cent.

The company also said it would now see a modest decline in adjusted operating margins for the year as it reinvests in its brands. The company had earlier expected margins to be around the same level as last year.

"New CEO Laxman Narasimhan's debut commentary reflects a big helping of sackcloth and ashes tempered by a dose of optimism," Jefferies analyst Martin Deboo said.

"The lowered outlook will create some room for maneuver, at inevitable cost to the share price."

Reckitt's shares were down 2.3&nbsp;percent at&nbsp;5,732 pence at 1040 GMT.

Reckitt Benckiser's new chief executive promised on Tuesday to step up spending on its brands and improve performance after the British household goods maker cut its full-year sales forecast for a second time.

Reckitt Benckiser's new chief executive promised on Tuesday to step up spending on its brands and improve performance after the British household goods maker cut its full-year sales forecast for a second time. Shares of the Durex condom and Lysol disinfectant maker fell as much as 5.5 per cent to £55.10, the lowest since May last year. "We are not pleased with where we are and we must consistently deliver," Laxman Narasimhan, who took over from long-time CEO Rakesh Kapoor in September, said on his first call with the investment community. He said his top priorities were to improve operational performance and build a resilient business model after a series of one-off setbacks kept a lid on growth in recent years. Narasimhan particularly lamented the performance of the firm's Health business, its largest, where a failed product launch, the nearly $17 billion acquisition of Mead Johnson, and a temporary baby milk factory shut down in the Netherlands, have all caused significant disruption, some lasting to this day. To fix these issues, he promised to invest more in Reckitt's brands, hire more talent and improve relationships with retailers, distributors and trade partners to head off problems such as inventory destocking, which hit third-quarter results. Narasimhan said the company would pause any activities that might take attention away from improving operational performance, but added its ongoing RB 2.0 plan, which seeks to split the group into two business units, would not be affected. The new CEO said he would provide a more detailed long-term strategy at the company's annual results in February. 'Sackcloth and ashes' Reckitt said it now expected like for like sales growth between flat and up 2 per cent this year, down from its previous target of 2-3 per cent. That was the second cut this year from an initial target of 3-4 per cent growth. Reported sales rose 5.3 per cent in the third quarter to £3.29 billion, missing analysts' forecast of £3.32 billion, according to a company-supplied consensus. Reckitt blamed a drop in retail orders for flu products such as Mucinex in the United States and a weak demand for its Enfamil baby products in China on the back of intense competition and declining birth rates. "What has happened this year and it is abundantly clear is we were not close enough to (the thinking) of those retailers to get a good reading of what was going to happen," outgoing finance chief Adrian Hennah told analysts on a call. Reckitt said on Monday Hennah would be replaced by Ahold-Delhaize executive Jeff Carr. Overall, Reckitt's like for like sales growth came in at 1.6 per cent in the third quarter, missing analysts' forecast of 3.2 per cent. The company also said it would now see a modest decline in adjusted operating margins for the year as it reinvests in its brands. The company had earlier expected margins to be around the same level as last year. "New CEO Laxman Narasimhan's debut commentary reflects a big helping of sackcloth and ashes tempered by a dose of optimism," Jefferies analyst Martin Deboo said. "The lowered outlook will create some room for maneuver, at inevitable cost to the share price." Reckitt's shares were down 2.3 percent at 5,732 pence at 1040 GMT.

New CEO vows improvements as Reckitt cuts sales forecast again

<a href="https://www.wionews.com/business-economy/reckitt-picks-pepsico-executive-as-ceo-going-outside-for-first-time-226588">British consumer health giant Reckitt</a> Benckiser announced Thursday it will pay up to $1.4 billion (1.2 billion euros) to settle a dispute with US authorities over the sale and marketing of an opioid addiction treatment.

The case concerns the pharmaceutical company Indivior, which was an RB subsidiary before emerging in 2014.

The US authorities criticised Indivior for having sought to take advantage of the opioid addiction crisis in the <a href="https://www.wionews.com/world/global-shares-muted-as-prospect-of-sharp-united-states-rate-cut-fades-234064">United States</a> by exaggerating the safety of its drug Suboxone.

RB said it had reached agreements with the US Department of Justice and the Federal Trade Commission to resolve the long-running investigation.

"RB will pay a total of up to $1.4 billion to fully resolve all federal investigations into RB in connection with the subject matter," the firm said in a statement.

The agreements cover the Indivior indictment and claims relating to state Medicaid programmes for those states choosing to participate in the settlement, said the group.

"While RB has acted lawfully at all times and expressly denies all allegations that it engaged in any wrongful conduct, after careful consideration, the board of RB determined that the agreement is in the best interests of the company and its shareholders," a statement said.

"It avoids the costs, uncertainty and distraction associated with continued investigations, litigation and the potential for an indictment."

Indivior was indicted in April over an alleged scheme to push its treatment for opioid addicts and reap billions of dollars from it.

A grand jury in the federal court in Abingdon, Virginia said that Indivior marketed Suboxone Film, an opioid-based drug, as a safe and controllable treatment for opioid and heroin addiction.

But the indictment said that Indivior sought to boost sales by exaggerating the safety of Suboxone Film and connecting patients with doctors who were known to over-prescribe it and other opioids, taking advantage of the country's huge opioid addiction crisis.

Beginning in 2010, the indictment claimed, Indivior told health care providers and programmes that Suboxone Film, which contains the opioid buprenorphine, was better and safer than similar drugs, when in fact it was not.

Indivior left the RB group in 2014. The pharmaceutical company is based in Richmond, Virginia, and is listed on the London Stock Exchange.

In a statement at the time, Indivior called the indictment "wholly unsupported by either the facts or the law".

British consumer health giant Reckitt Benckiser announced Thursday it will pay up to $1.4 billion (1.2 billion euros) to settle a dispute with US authorities over the sale and marketing of an opioid addiction treatment.

British consumer health giant Reckitt Benckiser announced Thursday it will pay up to $1.4 billion (1.2 billion euros) to settle a dispute with US authorities over the sale and marketing of an opioid addiction treatment. The case concerns the pharmaceutical company Indivior, which was an RB subsidiary before emerging in 2014. The US authorities criticised Indivior for having sought to take advantage of the opioid addiction crisis in the United States by exaggerating the safety of its drug Suboxone. RB said it had reached agreements with the US Department of Justice and the Federal Trade Commission to resolve the long-running investigation. "RB will pay a total of up to $1.4 billion to fully resolve all federal investigations into RB in connection with the subject matter," the firm said in a statement. The agreements cover the Indivior indictment and claims relating to state Medicaid programmes for those states choosing to participate in the settlement, said the group. "While RB has acted lawfully at all times and expressly denies all allegations that it engaged in any wrongful conduct, after careful consideration, the board of RB determined that the agreement is in the best interests of the company and its shareholders," a statement said. "It avoids the costs, uncertainty and distraction associated with continued investigations, litigation and the potential for an indictment." Indivior was indicted in April over an alleged scheme to push its treatment for opioid addicts and reap billions of dollars from it. A grand jury in the federal court in Abingdon, Virginia said that Indivior marketed Suboxone Film, an opioid-based drug, as a safe and controllable treatment for opioid and heroin addiction. But the indictment said that Indivior sought to boost sales by exaggerating the safety of Suboxone Film and connecting patients with doctors who were known to over-prescribe it and other opioids, taking advantage of the country's huge opioid addiction crisis. Beginning in 2010, the indictment claimed, Indivior told health care providers and programmes that Suboxone Film, which contains the opioid buprenorphine, was better and safer than similar drugs, when in fact it was not. Indivior left the RB group in 2014. The pharmaceutical company is based in Richmond, Virginia, and is listed on the London Stock Exchange. In a statement at the time, Indivior called the indictment "wholly unsupported by either the facts or the law".

Reckitt pays US 1.4 billion dollar to settle opioid treatment spat

Consumer goods group <a href="https://www.wionews.com/world/pepsico-results-beat-as-new-ceos-ad-push-lifts-sales-211980">Reckitt Benckiser has picked PepsiCo</a> executive Laxman Narasimhan as its next chief executive, becoming the latest industry heavyweight to turn to a company outsider to tackle faltering growth and new media-savvy rivals.

Narasimhan, PepsiCo's global chief commercial officer, is the first external candidate to be appointed as CEO at Reckitt since the maker of Durex condoms, Nurofen tablets and Dettol cleaners were formed in 1999.

The 52-year-old takes over as CEO on September 1, replacing Rakesh Kapoor, 60, who has led Reckitt for more than eight years and said in January he would retire this year.

Analysts welcomed the appointment, saying the new CEO would inject a fresh perspective to a company facing industrywide challenges to growth, though some said it raised doubts about the fate of Reckitt's restructuring plan.

The appointment is the latest in a series of external hirings as major consumer goods groups look to make up ground lost to smaller brands that have done a better job selling online and connecting with millennials on social media, while also facing investor pressure to boost efficiency.

Analysts had tipped Reckitt's health division operations chief Aditya Sehgal and hygiene home president Rob de Groot as potential internal successors to Kapoor.

In the end, Narasimhan's experience running large scale consumer businesses in developed and emerging markets helped him beat out 60 candidates reviewed for the job, Reckitt Benckiser Chairman Chris Sinclair told Reuters.

"He has got great perspective, but first and foremost we saw him as a consumerist and a consumer marketer and that's what set him apart," Sinclair said.

At PepsiCo, the chief commercial officer position held by Narasimhan will now be filled by the company's Greater China CEO Ram Krishnan, the US drinks maker said.

As well as industry challenges, Reckitt has faced company-specific setbacks in recent years, including a safety scandal in South Korea, a failed product launch and a cyber attack.

Kapoor launched a restructuring plan, dubbed RB 2.0, to split the group into two business units, one for health and one for hygiene and home products - under the same parent company.

Reckitt said on Wednesday Narasimhan would be charged with delivering the plan, due to be completed in 2020, but some analysts suggested he might have other ideas.

"The appointment of a new, external CEO is bound to raise questions regarding the timing of the end of the group's RB 2.0 plan and whether it will ultimately lead to a split of the company," Liberum analyst Robert Waldschmidt said.

Sinclair, however, said Reckitt was on track to complete the 2.0 program by mid or late 2020 and that Narasimhan agreed with the plan.

Fresh Perspective

Jefferies analyst Martin Deboo questioned why a company already smaller than rivals Procter &amp; Gamble and Unilever wanted to "descale itself", which could hobble its ability to compete in emerging markets.

Reckitt shares were up 1.6% in afternoon trading on the London Stock Exchange.

At least three analysts welcomed Narasimhan's appointment.

"Narasimhan's strategic and leadership background make him a strong fit for Reckitt. We believe he will bring a fresh perspective to both the business and to investors," Morgan Stanley analyst Richard Taylor wrote in a note.

Narasimhan led Strategy, Global Category Groups and Global R&amp;D in his capacity as Chief Commercial Officer at PepsiCo.

Prior to that, he headed the beverage maker's Latin America, Europe and Sub-Saharan Africa operations, managing annual sales of 14.5 billion pounds ($18.5 billion) - more than the total annual sales of Reckitt Benckiser. At one time he was also a chief financial officer of the group's Americas Foods business.

Narasimhan studied mechanical engineering in India before moving to the United States for an MBA degree. Before joining PepsiCo, he worked at consultants McKinsey for two decades, where he advised on large consumer and healthcare deals.

Consumer goods group Reckitt Benckiser has picked PepsiCo executive Laxman Narasimhan as its next chief executive, becoming the latest industry heavyweight to turn to a company outsider to tackle faltering growth and new media-savvy rivals.

Consumer goods group Reckitt Benckiser has picked PepsiCo executive Laxman Narasimhan as its next chief executive, becoming the latest industry heavyweight to turn to a company outsider to tackle faltering growth and new media-savvy rivals. Narasimhan, PepsiCo's global chief commercial officer, is the first external candidate to be appointed as CEO at Reckitt since the maker of Durex condoms, Nurofen tablets and Dettol cleaners were formed in 1999. The 52-year-old takes over as CEO on September 1, replacing Rakesh Kapoor, 60, who has led Reckitt for more than eight years and said in January he would retire this year. Analysts welcomed the appointment, saying the new CEO would inject a fresh perspective to a company facing industrywide challenges to growth, though some said it raised doubts about the fate of Reckitt's restructuring plan. The appointment is the latest in a series of external hirings as major consumer goods groups look to make up ground lost to smaller brands that have done a better job selling online and connecting with millennials on social media, while also facing investor pressure to boost efficiency. Analysts had tipped Reckitt's health division operations chief Aditya Sehgal and hygiene home president Rob de Groot as potential internal successors to Kapoor. In the end, Narasimhan's experience running large scale consumer businesses in developed and emerging markets helped him beat out 60 candidates reviewed for the job, Reckitt Benckiser Chairman Chris Sinclair told Reuters. "He has got great perspective, but first and foremost we saw him as a consumerist and a consumer marketer and that's what set him apart," Sinclair said. At PepsiCo, the chief commercial officer position held by Narasimhan will now be filled by the company's Greater China CEO Ram Krishnan, the US drinks maker said. As well as industry challenges, Reckitt has faced company-specific setbacks in recent years, including a safety scandal in South Korea, a failed product launch and a cyber attack. Kapoor launched a restructuring plan, dubbed RB 2.0, to split the group into two business units, one for health and one for hygiene and home products - under the same parent company. Reckitt said on Wednesday Narasimhan would be charged with delivering the plan, due to be completed in 2020, but some analysts suggested he might have other ideas. "The appointment of a new, external CEO is bound to raise questions regarding the timing of the end of the group's RB 2.0 plan and whether it will ultimately lead to a split of the company," Liberum analyst Robert Waldschmidt said. Sinclair, however, said Reckitt was on track to complete the 2.0 program by mid or late 2020 and that Narasimhan agreed with the plan. Fresh Perspective Jefferies analyst Martin Deboo questioned why a company already smaller than rivals Procter & Gamble and Unilever wanted to "descale itself", which could hobble its ability to compete in emerging markets. Reckitt shares were up 1.6% in afternoon trading on the London Stock Exchange. At least three analysts welcomed Narasimhan's appointment. "Narasimhan's strategic and leadership background make him a strong fit for Reckitt. We believe he will bring a fresh perspective to both the business and to investors," Morgan Stanley analyst Richard Taylor wrote in a note. Narasimhan led Strategy, Global Category Groups and Global R&D in his capacity as Chief Commercial Officer at PepsiCo. Prior to that, he headed the beverage maker's Latin America, Europe and Sub-Saharan Africa operations, managing annual sales of 14.5 billion pounds ($18.5 billion) - more than the total annual sales of Reckitt Benckiser. At one time he was also a chief financial officer of the group's Americas Foods business. Narasimhan studied mechanical engineering in India before moving to the United States for an MBA degree. Before joining PepsiCo, he worked at consultants McKinsey for two decades, where he advised on large consumer and healthcare deals.

Reckitt picks PepsiCo executive as CEO, going outside for first time