Reckitt CEO Expects Delayed Inflation from Iran War to Hit Consumer Goods
Impact of Iran Crisis on Reckitt and the Consumer Goods Sector
LONDON, June 16 (Reuters) - Reckitt CEO Kris Licht said on Tuesday that the maker of goods from Dettol to Durex expected a delayed inflationary hit from the Iran crisis.
Licht was speaking in an interview at the Reuters NEXT Europe summit in London.
Inflationary Effects and Timing
"In terms of the inflationary effects of the crisis, which are clear, that will start to flow through", he said. "There's actually a bit of a delay on some of that," he said.
Challenges for Consumer Goods Companies
Consumer goods companies are navigating a tough global environment with weak consumer sentiment and higher costs and supply disruptions as a result of the Iran war.
Financial Performance and Market Response
Reckitt warned in April of lower first-half margins, citing high oil prices and a weak cold and flu season. Its share price is down around 23% so far this year.
Geopolitical Developments and Company Strategy
The U.S. and Iran have agreed on a framework for a peace deal, but Licht said it was too early to draw any conclusions about the conflict. He said Reckitt was used to navigating inflationary shocks and is well-placed in the U.S. and emerging markets like China and India.
Growth in Emerging Markets
"We're seeing strong growth" in emerging markets, he said. "And that is really where you can source most growth."
Further Information
View the Reuters Next live broadcast of the World Stage here, and read full coverage here.
(Reporting by Alessandro Parodi and Izabela Niemiec in Gdansk, Alexander Marrow in London; Editing by Hugh Lawson)
