Skip to content 
Search

Latest Stories

Reckitt Benckiser takes £5bn writedown 

BRITISH consumer goods giant Reckitt Benckiser (RB) has taken a £5 billion writedown on the acquisition of Mead Johnson, its baby formula acquisition.

RB acquired Mead Johnson for $18 billion (£14.04bn) in 2017 under then chief executive Rakesh Kapoor, who stepped down last year.


The impairment follows a review by Laxman Narasimhan, who took over as the boss of the FTSE100 company in September.

The Mead Johnson deal was made to expand the Narasimhan-led group in China, as it shifts its business towards higher-margin consumer healthcare.

However, the company has faced many hurdles in the Asian country to integrate the business quickly and to achieve business targets as planned.

The £5,037 million impairment of goodwill on the Mead Johnson acquisition was made in RB’s annual results.

The Slough-based group posted an operating loss of £1.95bn in the year to December, compared to a profit of £3bn a year earlier, according to financial results released for the year 2019 on Thursday (27).

RB also said the prospects for the Chinese market “have lowered, as a sustained materially lower birth rate has become likely”.

It added: “In addition, the competitive dynamics have changed with evolving regulation and the progress of a number of local competitors.”

Changes to its long-term supply network for the business would also be “more capital intensive than we had expected”.

The consumer goods giant has also tempered growth expectations this year because of the uncertainty from China over the coronavirus outbreak.

It said that although it was “growing faster than last year- and in some areas, significantly faster-we are targeting a higher level of like-for-like net revenue growth than we achieved in 2019, reflecting some of the uncertainty around the impact of the covid-19”.

It further noted: “It is too early to fully assess the impact of the COVID-19 outbreak on the operational and financial performance of the group. We are committed to China, to the health of our consumers in China.

“We are seeing some increased demand for Dettol and Lysol products and are working to support the relevant healthcare authorities and agencies, including through donations, information and education. We do see increased activity online for our consumers in China. Conversely, we are seeing some disruption to offline retailers, distribution channels and the supply chain connected to China.”

Narasimhan said in a statement that recent years had been difficult for his business but the company “operates in strong, structural growth categories and has an outstanding collection of trusted, market-leading brands”.

He plans to invest £2bn over the next three years, including this year in digital, customer service, and innovations. It means that 2020 would be a “transitional year”.

RB will focus on hygiene, health and nutrition and plans to increase from 75 core category market units to 100.

More For You

Bangladesh seeks US deal to shield garment industry from tariffs

Workers are engaged at their sewing stations in a garment factory in Savar, on the outskirts of Dhaka, on April 9, 2025. (Photo by MUNIR UZ ZAMAN/AFP via Getty Images)

Bangladesh seeks US deal to shield garment industry from tariffs

BANGLADESH, the world's second-biggest garment manufacturer, aims to strike a trade deal with the US before Donald Trump's punishing tariffs kick in next week, said the country's top commerce official.

Dhaka is proposing to buy Boeing planes and boost imports of US wheat, cotton and oil in a bid to reduce the trade deficit, which Trump used as the reason for imposing painful levies in his "Liberation Day" announcement.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Bond yields ease following Starmer’s support for Reeves

THE COST of UK government borrowing fell on Thursday, partially reversing the rise seen after Chancellor Rachel Reeves became emotional during Prime Minister’s Questions.

The yield on 10-year government bonds dropped to 4.55 per cent, down from 4.61 per cent the previous day. The pound also recovered slightly to $1.3668 (around £1.00), though it did not regain all its earlier losses.

Keep ReadingShow less
modi-trump-getty
Modi shakes hands with Trump before a meeting at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)
Getty Images

Indian exporters watch closely as Trump says trade deal with India likely

THE US could reach a trade deal with India that would help American companies compete more easily in the Indian market and reduce tariff rates, President Donald Trump said on Tuesday. However, he cast doubt on a similar deal with Japan.

Speaking to reporters on Air Force One, Trump said he believed India was ready to lower trade barriers, potentially paving the way for an agreement that would avoid the 26 per cent tariff rate he had announced on April 2 and paused until July 9.

Keep ReadingShow less
Kolhapuri sandal sales surge in India post Prada controversy

Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi

Kolhapuri sandal sales surge in India post Prada controversy

INDIAN footwear sellers and artisans are tapping into nationalist pride stoked by the Prada 'sandal scandal' in a bid to boost sales of ethnic slippers with history dating back to the 12th century, raising hopes of reviving a struggling craft.

Sales are surging over the past week for the 'Kolhapuri' sandals that have garnered global attention after Prada sparked a controversy by showcasing similar designs in Milan, without initially crediting the footwear's origins.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Economy grew 0.7 per cent in Q1 2025, fastest in a year

THE UK economy expanded at its fastest pace in a year during the first quarter of 2025, driven by a rise in home purchases ahead of a tax deadline and higher manufacturing output before the introduction of new US import tariffs.

Gross domestic product rose by 0.7 per cent in the January-to-March period, the Office for National Statistics (ONS) said, confirming its earlier estimate. This was the strongest quarterly growth since the first quarter of 2024.

Keep ReadingShow less