Reckitt Benckiser will split into two business units, the British consumer goods maker said today, after a third-quarter fall in sales prompted it to cut its full-year forecast.
The maker of Nurofen tablets and Lysol disinfectants has struggled with fallout from a cyber attack, a failed product launch and a safety scandal in South Korea.
The company said it planned to split into two units, one focused on health and the other on hygiene and home products in an effort to improve its flagging performance.
Reckitt said third-quarter sales were £3.21 billion, down 1% on a like-for-like basis.
That fell short of analysts' average estimate of 0.6% growth, a company-supplied consensus showed, and in line with a decline of 1% for the first half.
Including a boost from currency exchange rates and its June acquisition of Mead Johnson, sales rose 30%.
Reckitt said it was now targeting flat like-for-like sales for the full year in its base business, down from its already lowered target for growth of 2%.
It had previously forecast growth of 3%, but reduced it in July after a June cyber attack hobbled its operations, leading to lost sales.
Sales at Mead Johnson, the maker of Enfamil baby formula which for now is still being run as a separate business, rose 1% in the third quarter, boosted by growth in China.
Rival Danone yesterday reported a 50% jump in Chinese baby food sales in the quarter.
Reckitt said it still expected Mead Johnson's full-year like-for-like sales to range from flat to down 2%.
It said the full integration of Mead Johnson and the creation of its new operating structure will start in the first quarter of 2018.
