Skip to content
Search

Latest Stories

Reckitt starts strategic review of its infant formula business in China

RECKITT BENCKISER has launched a strategic review of Mead Johnson, the infant formula business in China, four years after the $18 billion acquisition of the brand.

Though there are reports of a possible sale, Laxman Narasimhan, Reckitt’s chief executive, told The Times that it was premature to speculate on the outcome.


Mead Johnson was more expensive than all of Reckitt Benckiser’s other acquisitions combined, reports said.

This week, the group announced the sale of Scholl, its footcare products business, to Yellow Wood Partners, the US private equity firm.

It was announced alongside the acquisition of the Biofreeze pain relief brand from Performance Health, owned by US private equity firm Madison Dearborn Partners.

Narasimhan, chief executive since September 2019 and a former Pepsico executive, has been trying to revive trading after years of sluggish sales and a series of costly mishaps under Rakesh Kapoor, his predecessor. They included an unsuccessful product launch at Scholl and disruption at a baby formula factory in the Netherlands.

Meanwhile, Reckitt posted an 11.8 per cent rise in total like-for-like sales growth to almost £14bn for the year to December, its largest increase since the group was formed in 1999.

The jump was driven by its hygiene business, where sales rose 19.5 per cent to £5.8bn amid increased concerns about cleanliness because of the pandemic. Sales in its health division, which include Dettol, jumped 12.1 per cent to almost £4.9bn.

Group sales in its fourth quarter were up 10.2 per cent, reports said.

Profit before tax rose to £1.9bn from a loss of £2.1bn in 2019.

Reckitt forecast sales this year in the range of flat to 2 per cent and raised target cost savings to £1.6bn over three years, from £1.3bn.

While commenting on the numbers, Narasimhan said that Reckitt is positioned to benefit from the post-pandemic world.

When the company acquired Mead Johnson, the manufacturer behind the Enfamil infant formula brand, in 2017, the deal was met with stinging criticism.

Reckitt was seeking to expand its higher-margin consumer healthcare business and to exploit growing demand for baby formula, particularly in China, where demand was expected to increase after the country ended its one-child policy in 2015 and with a growing number of women in the workforce.

Revenues in the infant nutrition business fell 4 per cent last year, despite a strong performance in North America from Enfamil.

Reckitt is based in Slough, operates in more than 60 countries and employs about 40,000 people.

More For You

‘All options on the table’ as Britain
prepares for likelihood of US tariffs

Sir Keir Starmer with Jonathan Reynolds

‘All options on the table’ as Britain prepares for likelihood of US tariffs

BRITAIN is likely to be hit by US tariffs despite making “rapid progress” over a trade deal with Washington, prime minister Sir Keir Starmer said on Tuesday (1).

He spoke as US trading partners around the world braced for an expected fresh raft of tariffs from president Donald Trump, in addition to levies already imposed on steel and those set to take effect this week on cars.

Keep ReadingShow less
single-use vapes-iStock

Analysis by Material Focus estimates that 8.2 million vapes are discarded or littered each week in the UK—equivalent to 13 every second. (Representational image: iStock)

iStock

Shops told to clear single-use vapes before ban starts on June 1

SHOPS across the UK have until 1 June 2025 to sell off remaining stocks of single-use vapes before a nationwide ban comes into force.

The legislation, confirmed last year, follows a government consultation that showed strong support for restricting their sale and supply.

Keep ReadingShow less
Primark-London-Getty

During his 15-year tenure, Marchant expanded Primark’s store network to more than 450 locations across 17 countries in Europe and the United States. (Photo: Reuters)

Primark chief Paul Marchant steps down after misconduct probe

PAUL MARCHANT, the head of fashion retailer Primark, has resigned with immediate effect after admitting to an "error of judgment" in his behaviour towards a woman in a social setting.

Associated British Foods (AB Foods), Primark's parent company, announced his resignation on Monday.

Keep ReadingShow less
Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

JAGUAR’S ambition to seduce younger, richer drivers was on full display in Paris with a presentation of its newest prototype, the Type 00, which promises all-electric luxury... at a steep price.

The low-slung, muscular-looking concept car presented to European reporters last Friday (21) prefigures a production model expected mid-2026 at a base cost of €150,000 (£123,472.8).

Keep ReadingShow less
Starmer-Trump-Getty

Trump has suggested the possibility of a 'great' trade deal that could help the UK mitigate the impact of tariffs he has pledged to introduce. (Photo: Getty Images)

Starmer, Trump talk trade deal progress in 'productive' discussion

KEIR STARMER and Donald Trump spoke on Sunday about ongoing UK-US trade negotiations, with Downing Street describing the talks as "productive."

Since leaving the European Union, the UK has been working to secure a trade agreement with the United States. Successive British governments have pursued a deal, but it has remained elusive.

Keep ReadingShow less