How to plug Reckitt’s yawning gaps
- Kris Licht became CEO of Reckitt in October 2023 with the goal of stabilizing the company.
- The company has faced major issues, including a legal dispute and accounting irregularities, resulting in substantial financial losses.
- Despite the turmoil, Licht's recent update indicated no new alarming developments, hinting at possible stabilization ahead.
In the United Kingdom, Kris Licht took the helm at Reckitt in October 2023, aiming to stabilize the company after a tumultuous period. Since his appointment, Reckitt has faced significant challenges, including a legal dispute that impacted its baby milk division, resulting in a staggering loss of £7 billion in market value. Additionally, the company dealt with accounting irregularities in the Middle East, which erased £55 million in sales, and it failed to meet its full-year revenue and margin targets. These setbacks culminated in a warehouse disruption due to a tornado in Mount Vernon. Consequently, Reckitt's share price has dropped by 15% since Licht's leadership began, falling from £58. Despite these turbulent developments, analysts from RBC Capital noted a lack of obvious issues in Licht's third-quarter update, indicating a potential turning point for the company.