Household goods giant Reckitt has warned the sale of its Cillit Bang and Air Wick arm might be delayed by market conditions as it revealed revenues fell across the division.
Reckitt – which put its essential home cleaning products business up for sale last summer as part of a major overhaul – said it was still aiming to sell the division this year, but admitted that “market conditions may impact this timeframe”.
The group’s first quarter update showed like-for-like sales within the essential home business – which accounts for 13% of group net revenues – fell 7% to £482 million.
Overall revenues at Reckitt grew by less than expected, up 1.1% in the quarter, with shares in the firm down by more than 4% in early trading on Wednesday.
Deals worldwide are said to have been impacted by recent stock market turbulence amid uncertainty over global tariffs imposed by US President Donald Trump and a mounting trade war between the US and China.
In terms of the direct impact of tariffs on its business, Reckitt said it was “closely monitoring the evolving situation around global tariffs and the potential impacts on our supply chain and cost base”.
But it said analysis so far signalled an “immaterial annualised impact” on the group’s cost of goods sold, which it is “confident in mitigating over the short to medium-term through a number of levers”.
“These include our inflight manufacturing investments, such as the recent investment in our Wilson, North Carolina, manufacturing facility, our excellent brand equities with pricing power, and limited imports from China into the US,” the group said.
The group’s chief executive Kris Licht has been leading a plan to restructure Reckitt, unveiling aims last year to spin off its baby formula business Mead Johnson and sell the essential home division.
He wants the firm to focus on what it calls its “power brands”, such as Durex condoms, Gaviscon antacid and Strepsils lozenges.
The firm’s latest figures showed that with Mead Johnson and essential home stripped out, like-for-like sales rose 3.1% in the first quarter.
Mr Licht said: “Our portfolio of high-growth, high-margin power brands underpins our resilience, and we maintain our outlook for full year 2025 whilst recognising the more challenging macroeconomic outlook.”
Richard Hunter, head of markets at interactive investor, said: “The separation of the Mead Johnson Nutrition and essential homes units are likely to provide a mountain to climb, and the current global economic uncertainty given the tariff traumas will likely impact on the timing of any sales.
“In the meantime, the two units account for around 30% of overall revenues, and this significant proportion muddies the waters for the prospects of what should eventually be a more focused and streamlined business.”
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