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Reckitt Benckiser Q3 Revenue Up, Health LFL Revenue Down; Cuts FY19 View

UK consumer goods giant Reckitt Benckiser plc (RBGLY,RB.L) reported Tuesday that its third-quarter net revenue increased 5.3 percent from last year to 3.28 billion pounds. On a like-for-like basis, revenue grew 1.6 percent, despite a 1 percent drop in volume.

Health net revenue increased 3.6 percent to 1.96 billion pounds. LFL revenue, meanwhile, edged down 0.3 percent.

Hygiene Home revenue grew 7.9 percent on a reported basis and 4.5 percent on LFL basis to 1.33 billion pounds.

Laxman Narasimhan, Chief Executive Officer, said, "RB's performance in Q3 was disappointing. ...Our Health business, despite good market growth and stable consumer offtake, delivered a weak net revenue performance. This was primarily due to issues in the US and China. In the US, we saw more cautious retailer seasonal purchasing patterns. In China, IFCN continues to face challenging market conditions."

Further, the company said it has lowered revenue outlook for the full year 2019 to reflect the combination of a weak Health performance in the third quarter and inherent seasonal uncertainty in the fourth quarter.

LFL Net Revenue growth for the year is now expected to be 0 percent to 2 percent, compared to previously expected 2 percent to 3 percent growth.

The company now expects a modest adjusted operating margin decline in 2019, compared to previously expected flat margin.

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