Reckitt Benckiser Gives Consumer Health Portfolio Its Own Home – What's Next?
This article was originally published in The Pink Sheet
UK manufacturer in January begins operating with a separate health care division, representing 60% of sales with products including Mucinex and Mead Johnson infant and adult formulas, and a home care/hygiene division led by Lysol disinfectants. The plan piques analysts' expectations that operating the divisions separately will lead to divesting one.
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Beiersdorf and Merck also were impacted by the June 27 malware attack that rocked the globe, but RB's the only one of the three that's in any way quantified the hit it sustained. The blow comes at an unfortunate time for the UK-based company, whose first-quarter performance was its weakest in 15 years.
Marketing Enfamil and other Mead Johnson formula and nutritional brands, says RB CEO Rakesh Kapoor, is "very much in the core of what consumer health stands for," and also immediately doubles the size of the firm's consumer business.
Reckitt Benckiser reorganizes to emphasize consumer healthcare and emerging markets, both high growth areas for the firm. The firm’s fiscal 2011 total net revenues were $15 billion, driven by emerging markets and brands including Mucinex decongestants, Nurofen analgesics and Strepsils sore throat treatments.