Cyber-Attack Causes 'Challenging' First-Half For Reckitt Benckiser
Published on Jul 25 2017 10:03 AM
A new type of sophisticated cyber-attack resulted in a 'challenging' first-half for Reckitt Benckiser Group (RG), according to its first-half results which it published today (24 July.)
The Durex and Nurofen maker said that key impacts have been reduced factory operations, delayed shipping and invoicing, and in some circumstances, lost sales.
"From an operational perspective, as expected we had a tough first half, with challenging conditions exacerbated by a sophisticated cyber-attack." Rakesh Kapoor, chief executive officer, said.
It outlined that earlier this year on Tuesday 27 June many other companies were impacted by a new type of sophisticated cyber-attack.
Once activated, 'the virus was able to avoid many ofthe measures in place to prevent its spread. As a consequence it rendered many systems and servers, using a certain operating system, inoperable very quickly.'
It said that systems were recovered progressively from 3 July and that by 11 July most of our manufacturing sites were producing close to normal capacity.
"Notwithstanding this [Cyber-attack], the business remains strong and our earnings model intact. We saw broad-based growth across the majority of our consumer health brands." Kapoor said.
Overall, the consumer products group hasposted a 2% decline in line-for-like revenue, at constant exchange rates, in the second quarter of the year.
On a positive note, highlights include 'significant progress' on its portfolio transformation on: Mead Johnson Nutrition (MJN) which it acquired on 15 June.
Principally, 'in respect of the MJN acquisition', this resulted in adjusting items of £127 million for the group.
Kapoor said, "In the first half of the year, we have made significant progress on portfolio transformation and becoming a more focused consumer health and hygiene business, with both the acquisition of Mead Johnson Nutrition, and the agreed sale of our Food business."
Its adjusted net income rose 14% and earnings per share rose 15%
© 2017 - Checkout Magazine by Donna Ahern