Kris Licht will succeed Nicandro Durante as CEO of Reckitt Benckiser (RKT.L) after a transition period.
Since July 2020, Licht has been Reckitt’s health business president and chief customer officer. On June 1, he will join the board as an executive director.
“Having played a pivotal role in both the transformation strategy and the significant turnaround of our Health GBU over the last three years, Kris is the right leader to take Reckitt on the next stage of its exciting journey,” said Durante, a former BAT (BATS.L) CEO.
“It was a very well-informed choice and the board had the luxury of time because I was here…that’s why the process took eight months.”
Reckitt will keep Durante until December “to ensure a smooth transition.”
“I very much like the continuity of an internal appointment,” said Reckitt investor Sarasin & Partners fund manager Neil Denman. An external CEO won’t come in and change things.
In the first quarter, the firm, which manufactures Durex condoms and Lysol cleaning products, reported like-for-like net revenue of 7.9%, exceeding analyst projections of 3.6%.
“A good set of results after what has been quite a choppy time for the company,” Denman said of the CEO’s impending exit.
After surpassing sales projections for many quarters thanks to price hikes, Reckitt, which sells Nurofen pills, Lemsip cold medicine, and Dettol hygiene products, predicts like-for-like net revenue growth of 3-5% for the year.
After two years of escalating raw materials, supply chain, and energy costs caused by the epidemic and Russia’s invasion of Ukraine, the consumer products industry raised prices.
Manufacturers’ price rises have caused buyers to switch from large brands to retailers’ cheaper own-label items. Investors worry about the impact on sales volumes and margins if prices keep rising.
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