Key facts
- Reckitt CEO Kris Licht expects a delayed inflationary impact from the Iran crisis.
- Licht indicated that inflationary effects are clear but will manifest with a lag.
- Consumer goods companies are navigating weak consumer sentiment, higher costs, and supply disruptions linked to the Iran war.
- Reckitt previously warned of lower first-half margins due to high oil prices and a weak cold and flu season.
- The company sees strong growth in emerging markets such as China and India.
Reckitt CEO Kris Licht indicated that the consumer goods company anticipates a delayed inflationary impact from the ongoing Iran crisis. Speaking at the Reuters NEXT Europe summit, Licht stated that while the inflationary effects are clear, they will begin to manifest with some lag.
Consumer goods companies are currently navigating a challenging global economic landscape characterized by weak consumer sentiment, elevated costs, and supply chain disruptions, partly attributed to the Iran war. Reckitt itself had previously warned in April about lower first-half margins, citing high oil prices and a subdued cold and flu season.
Despite the current challenges, Licht expressed confidence in Reckitt's ability to manage inflationary shocks, highlighting the company's strong performance and growth in emerging markets like China and India as key drivers.