Reckitt Shares Drop After Lysol Shortage Prompts Guidance Trim

By Aimee Look

Shares in Reckitt Benckiser slid after the consumer-goods giant lowered its full-year outlook, hit by Lysol manufacturing disruption that dragged on sales in North America.

The British maker of Lysol cleaning spray, Mucinex cough medicine and Durex condoms said it now anticipates 3.5% to 4.5% like-for-like revenue growth at its core business this year, compared with guidance issued in July of 4% to 5% growth. Reckitt's core business excludes the Essential Home division it divested of last year, and infant formula unit Mead Johnson Nutrition.

London-listed shares fell 4.2% in Tuesday morning trading and are down 13% this year so far.

The company said it amended guidance partially due to the Lysol disruption, which it attributed to temporary manufacturing capacity constraints. Like-for-like net revenue in the North America region fell 1.3% in the quarter. Reckitt said it anticipates a rebound from Lysol and North America in the fourth quarter as it resolves the issues.

"We have our hands around it," Reckitt's Chief Executive Officer Kris Licht said on a call with investors. "This business will rebound in 4Q."

Reckitt has faced a slew of international challenges recently halting production at a plant in Bahrain and hiking prices due to the Iran war, and later divesting of its sanctions-hit Russian hygiene business.

Licht said that from now on, the company will continue to invest more in manufacturing, as it historically hasn't spent as much as it needed to. In September, Reckitt said it planned to expand its North Carolina manufacturing plant and a New Jersey campus, pledging to invest around $400 million more over the next four years in the U.S.

Regarding the Lysol capacity constraints, Licht said the company expects it will be able to meet demand and that its ability in October has already been improving.

Nevertheless, analysts said the hit was an unpleasant surprise.

"This new Lysol issue will be seen as disappointing and a new negative," Barclays analyst Warren Ackerman wrote in a note to clients. This was the main culprit for the North America miss and also hit price-mix, he said.

Similarly, RBC's James Edwardes Jones said that Reckitt's latest update wouldn't change the perception that the company is unpredictable.

Reckitt booked like-for-like revenue growth of 3.3% for its core Reckitt business in the third quarter, and reported revenue of 2.69 billion pounds ($3.59 billion).

Also on Tuesday, Licht said higher energy prices were a big headwind for U.S. consumers, as spending budgets have remained the same. People are having to shift where they put their money--more on gas than anywhere else--and this is creating challenges, he said.

Write to Aimee Look at aimee.look@wsj.com

(END) Dow Jones Newswires

October 27, 2026 06:48 ET (10:48 GMT)