Reckitt Shares Dip as Lysol Supply Woes Force Outlook Cut

The North American market bore the brunt of the shortfall, with regional like-for-like net revenue slipping 1.3% in the third quarter. Chief Executive Officer Kris Licht attributed the disruption to temporary capacity constraints, promising investors that production has already begun to stabilize in October. The firm expects a recovery in the final quarter of the year, backed by a broader strategy to modernize its infrastructure after years of underinvestment in manufacturing capabilities.

Despite the CEO's assurances, market reaction remained skeptical. Barclays analyst Warren Ackerman labeled the development an unpleasant surprise, noting that the Lysol supply issue directly damaged the company's price-mix performance. RBC’s James Edwardes Jones echoed this sentiment, suggesting the move reinforces a growing perception of unpredictability surrounding the brand. Reckitt reported third-quarter core revenue of 2.69 billion pounds, or $3.59 billion, while facing additional pressure from shifting U.S. consumer spending habits as households prioritize fuel costs over discretionary goods.