UK household goods maker Reckitt Benckiser has cut its full-year sales forecast for the second time this year.
The company blamed a drop in retail orders for its Mucinex product in the US and a drop in demand for its Enfamil baby products in China.
The Gaviscon and Lysol disinfectant maker said it now expected full-year like for like sales growth to range from flat to up 2%, down from its previous target of 2% to 3%, which marked its second forecast cut this year.
The company also said it expected to see a modest decline in adjusted operating margins for the year as it pours more money into its brands.
It had earlier expected margins to be at the same level as last year.
Reckitt Benckiser said its reported sales rose 5.3% in the third quarter to £3.29 billion, missing analysts' forecast of £3.32 billion, according to a company supplied consensus.
Reckitt blamed cautious purchasing of its Mucinex and Delsym cold and flu products by US retailers ahead of the flu season and a drop in demand for its Enfamil baby food products in China for its weak performance in the three month period .
The quarterly report is the first for new chief xecutive Laxman Narsimhan who in September took over from long-time CEO Rakesh Kapoor.
"RB's performance in Q3 was disappointing," Narsimhan, the former PepsiCo executive said in a statement. "I am prioritising execution and operational performance as a matter of urgency," he added.
