, Columnist
Reckitt Benckiser Cries Over $6.5 Billion of Spilled Milk
Reckitt’s acquisition of Mead hasn’t turned out very well. The British consumer good giant could end up an activist target if it doesn’t shape up.
Reckitt should have kept its powders dry.
Photographer: AFP/AFPThis article is for subscribers only.
When Laxman Narasimhan cut the full-year outlook for Reckitt Benckiser Group Plc in October, the company’s new chief executive officer threw in everything but the kitchen sink.
On Thursday, he completed his demolition job of expectations at the maker of everything from Durex condoms to Dettol disinfectant, saying the operating margin would be much lower in the future and announcing a 5 billion-pound ($6.5 billion) writedown to the value of the Mead Johnson baby-formula business, which Reckitt bought just three years ago for $17 billion.