Reckitt Benckiser Plans to Refocus on Healthcare and Hygiene

Reckitt Benckiser will evaluate its troubled nutrition division and offload homecare brands by 2025, shifting focus to healthcare and hygiene. Shareholders had pressured Reckitt to consider selling its Mead Johnson nutrition business following litigation issues. The strategic shift was well-received, sending shares up 4%.

Reckitt Benckiser is exploring options for its struggling nutrition unit and will divest its homecare brands by the end of 2025, the company announced on Wednesday. It plans to concentrate more on healthcare and hygiene products.

The company's homecare portfolio, including brands like Air Wick and Cillit Bang, generated 1.9 billion pounds ($2.5 billion) in sales last year but is no longer seen as core to its operations. Additionally, Reckitt faces shareholder pressure to consider selling its Mead Johnson nutrition division, which sells baby formula.

This follows a $60 million payment ordered by an Illinois jury due to a premature baby's death linked to the company's Enfamil formula. Despite ongoing litigation, CEO Kris Licht has not ruled out a sale. Investor response was positive, driving shares up by over 4%, later settling at a 1.6% rise. The company also plans a share buyback of up to 1 billion pounds and will increase its interim dividend.

(With inputs from agencies.)