Reckitt Benckiser Group’s (RBGPF) Q3 2017

posted in: Earnings Call, Notes | 0

Rakesh Kapoor – CEO and Executive Director

The cyber attack in June to impact full year fuidance

“On June 27th, many companies, some 30 companies as we understand it, including RB, were impacted by an unprecedented and sophisticated global cyberattack….To give you a measure of the scale, nearly 500 systems and 2,000 servers, which are reliant upon certain operating systems, were affected and rendered inoperable…., I think we have at this stage, we have rolled everything into the full year guidance of 2% topline growth rate, and we believe that some of the big impacts of cyber, which is going to flow into Q3, will mean that the acceleration of growth will be more back end weighted by that simple logic.”

Pricing pressure in Europe and emerging markets

“We are certainly in very volatile and unpredictable markets…. let’s start with Europe, the pricing environment is tough because you can see the amount of pressure there is in the retail space…there is a flow into this competitive pricing across European markets….So you see some of those normal inflationary markets which were building pricing in the past are not so doing so at this point in time. And clearly, in emerging markets, where, again, we would normally expect material inflation and pricing, you are seeing that market like Brazil and India for very different reasons, actually are also very volatile. So I would say that when you add it all together, the pricing environment is tougher.”