Reckitt preps sale of brands in bid to become ‘more effective’
Reckitt is selling ‘non-core’ brands, including Air Wick and Cilit Bang, and changing its business structure to chase long-term growth.
Reckitt plans to sell off its ‘non-core’ brands in a bid to create a “simpler, more effective organisation” better set up for long-term profitable growth.
The consumer goods business announced today (24 July) it will “seek to exit” its “essential home” portfolio. These brands include Cilit Bang and Air Wick, which are “no longer core” to the business.
Speaking to investors, CEO Kris Licht laid out how Reckitt defines which brands are “core” to its business. Each brand must “earn” its place in the portfolio by meeting three criteria. The first is that brands must have “a clear and credible long-term runway for growth”. The second principle is around earnings models, in particular the strength of each brand’s gross margins.
