Plans to cut fixed costs by 3.0 pct pts by 2027 (Il Sole 24 Ore Radiocor) - London, 24 Jul - Reckitt noted that it will become "a simpler and more effective organisation with fewer management layers and reduced duplication to accelerate speed of decision making and improve efficiency. This means a move to a unified category structure operated through three geographies, North America, Europe and Emerging Markets, and removing the Global Business Unit structure." The group plans to "expand and accelerate its existing fixed cost optimisation initiative to drive improved effectiveness and efficiency of the organisation. This program will deliver a step change in organisational effectiveness with fewer management layers and greater proximity to the consumer." These change will unlock cost efficiencies delivering at least a 3.00 percentage point reduction in fixed costs as it exits 2027 to achieve an end-state fixed-cost base of about 19%, from 22% today. Reckitt expects to incur estimated one-off cash restructuring and transformation costs during this period of about 1.0 billion pounds, it added.

Reckitt's new organisation and revised leadership will1 be in place on January 1, 2025.

From January 1, the group will report its financials in three segments: Reckitt, Essential Home and Mead Johnson Nutrition.

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(RADIOCOR) 24-07-24 19:14:40 (0787) 5 NNNN