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Trading statements

Reckitt Benckiser updates on impact of cyber attack

06 July 2017 07:13

Consumer goods titan Reckitt Benckiser said it continues to assess the full impact of a Q2 cyber attack and new Goods & Services Tax in India, noting it expects to recover some of the revenue lost in Q2 during Q3.

Since the 27 June cyber attack, Reckitt said it had made good progress in getting key applications and systems back on track so that it could start trading normally with all its customers and partners.

"We believe this issue has now been materially contained, and we continue to work with our IT partners to resolve remaining outstanding items. Mead Johnson's systems have not been impacted by the attack," it said.

The cyber attack disrupted Reckitt's ability to manufacture and distribute products to customers in multiple markets across the group.

"Consequently, we were unable to ship and invoice some orders to customers prior to the close of the quarter. Some of our factories are currently still not operating normally but plans are in place to return to full operation," it said in a statement.

"Separately, and to a lesser extent, the implementation of the new Goods and Services Tax (GST) in India resulted in reduced orders from some customers during June."

Reckitt said it was still assessing the full financial impact of these events, in addition to performing its usual quarter end financial close process.

As a result, it expected some of the revenue lost from Q2 would be recovered in Q3.

"However, the continued production difficulties in some factories mean that we also expect to lose some further revenue permanently.

"We now expect full year like-for-like net revenue growth of around +2% (previously +3%). Operating margin continues to make satisfactory progress."

Story provided by StockMarketWire.com

Related Company: RB.

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