Reckitt Benckiser CEO aims for comeback from worst year ever

The Slough, England-based maker of Durex condoms and Nurofen painkillers forecast that comparable sales will rise by 2% to 3% in 2018, after the first 12-month period of stagnant sales in the company’s history. The shares fell as much as 3.8% early on Monday in London as Morgan Stanley analysts led by Richard Taylor described the outlook as conservative.

The company is eyeing a comeback from a year marred by a cyberattack and lackluster demand for new products. Chief executive officer Rakesh Kapoor has moved to separate its home-care and health businesses, sharpening a focus on brands such as Strepsils and Mucinex. On a comparable basis, sales were up 2% in the fourth quarter.

Reckitt became a leader in infant nutrition with the acquisition of Mead Johnson last year. On Monday, it increased its forecast for synergies from the deal to about $300m from $250m.

“We returned to growth after a solid finish to the year, our acquisition of MJN is firmly on track and the creation of two business units - RB Health and RB Hygiene Home - will drive long-term growth,” Kapoor said in a statement.

The company said it sees 4% to 6% midterm growth in consumer health, which has been expanding more rapidly than the home-care operations. Reckitt Benckiser is one of two remaining bidders vying to acquire Pfizer’s consumer-health business, which includes brands such as Advil and ChapStick lip balm, according to people familiar with the matter. UK drugmaker GlaxoSmithKline is the other.

A takeover, which could fetch as much as $20bn, would be the company’s largest since the Mead Johnson deal. On a call Monday, Kapoor declined to comment on a possible bid.