Cyber attack update and estimated financial effect
6 July 2017
Reckitt Benckiser Group plc
Update on cyber-attack - and estimate of financial effect
RB notes that further to the cyber-attack which occurred on the 27th of June, we have made good progress in getting key applications and systems back on track so we can start trading normally with all our customers and partners.
We believe this issue has now been materially contained, and we continue to work with our IT partners to resolve remaining outstanding items. Mead Johnson's systems have not been impacted by the attack.
However, the attack did disrupt the company's ability to manufacture and distribute products to customers in multiple markets across the RB Group. Consequently, we were unable to ship and invoice some orders to customers prior to the close of the quarter. Some of our factories are currently still not operating normally but plans are in place to return to full operation.
Separately, and to a lesser extent, the implementation of the new Goods and Services Tax (GST) in India resulted in reduced orders from some customers during June.
We are still assessing the full financial impact of these events, in addition to performing our usual quarter end financial close process. However, we estimate their impact on Q2 trading is as follows:
|
|
Reported |
Adjusted for cyber-attack / GST |
|
Q2 LFL net revenue growth*
|
-2% |
Flat |
We expect that some of the revenue lost from Q2 will be recovered in Q3. However, the continued production difficulties in some factories mean that we also expect to lose some further revenue permanently.
We now expect full year like-for-like net revenue growth* of around +2% (previously +3%). Operating margin continues to make satisfactory progress.
A further update on these matters, trading, and full year targets will be provided in our interim statement and investor webcast.
* Like-for-like ("LFL") growth excludes the impact of changes in exchange rates, acquisitions, disposals and discontinued operations
About RB:
RB* is the world's leading consumer health and hygiene company. The company has operations in over 60 countries, with headquarters in London, Dubai and Amsterdam, and sales in most countries across the globe. The company employs approximately 37,000 people worldwide.
Led by a purpose of providing innovative solutions for healthier lives and happier homes, RB is amongst the top 10 companies listed on the London Stock Exchange. It is the global No 1 or No 2 in the majority of its fast-growing categories, driven by an exceptional focus on innovation. RB's Health, Hygiene and Home portfolio is led by its global Powerbrands including Nurofen, Strepsils, Gaviscon, Mucinex, Durex, Scholl, Clearasil, Lysol, Dettol, Veet, Harpic, Cillit Bang, Mortein, Finish, Vanish, Calgon, Air Wick, Woolite and French's. Powerbrands represent 80% of RB's net revenue.
RB is redefining the world of consumer health and hygiene. Its people and unique culture are at the heart of its success. It has a drive for achievement and a passion to outperform wherever it focuses, including sustainability where it is targeting a 1/3 reduction in water impact, a 1/3 reduction in carbon and 1/3 of net revenue from more sustainable products. RB is proud to lead the Save a Child a Minute campaign, which aims to eliminate child deaths from diarrhoea, one of the world's largest killers of children under 5.
For more information visit www.rb.com
*RB is the trading name of Reckitt Benckiser group of companies
Enquiries / advisers
For further information, please contact:
RB +44 (0)1753 217 800
Richard Joyce - SVP, Investor Relations
Miguel Veiga Pestana - SVP, Corporate Communications and External Affairs
Further information
Reckitt Benckiser Group plc's LEI code is 5493003JFSMOJG48V108
Important notice
This announcement is not for release, publication or distribution directly or indirectly, in whole or in part, into or from any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction. This announcement has been prepared for the purposes of complying with applicable law and regulation in the United Kingdom and the information disclosed may not be the same as that which would have been disclosed if this announcement had been prepared in accordance with the laws and regulations of any jurisdiction outside of the United Kingdom.
This information is provided by RNS
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