Reckitt Benckiser (RBGLY) said Thursday that its second quarter revenues will take a significant hit as a result of the impact of the petya cyber attack that spread across Europe and Asia late last month.
The consumer health and hygiene group said that like-for-like revenues will likely fall by 2% when compared to the same quarter of 2016, Reckitt said, owing to the impact of the attack and the companies ability to ship goods to various customers. it had previously expected sales to rise by around 3%. Mead Johnson (MJN) , the infant nutrition group it is acquiring for around $18 billion, was not hit by the attack, Reckitt said.
"We believe this issue has now been materially contained, and we continue to work with our IT partners to resolve remaining outstanding items," the company said. "However, the attack did disrupt the company's ability to manufacture and distribute products to customers in multiple markets across the RB Group."
"Consequently, we were unable to ship and invoice some orders to customers prior to the close of the quarter. Some of our factories are currently still not operating normally but plans are in place to return to full operation," Reckitt said.
Reckitt generated £2.643 billion ($3.4 billion) in sales over the three months ending in March, the company reported on April 21, while like-for-like sales in its hygiene group advanced 3% and home and portfolio sales drifted 4% and 6% respectively.
"Our Q1 results are in line with expectations as macro conditions remain challenging. Against this backdrop our underlying business remains strong," said CEO Rakesh Kapoor at the time. "We delivered continued outperformance in consumer health and good growth in (developing markets), offset by previously flagged headwinds, which will persist during the first half."
"I expect our growth trajectory to improve as we progress through the year and we remain on track to achieve our full year net revenue target of +3% LFL growth," he said.
Reckitt shares fell 2% in early London trading to change hands at 7,537 pence each, trimming their three month gain to around 4.2%.