Feb 14 2020

Reckitt Benckiser share price (RB) falls as it warns second-quarter sales were hit by the Petya ransomware attack, City A, reckitt benckiser pharmaceuticals.

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Reckitt Benckiser warns sales took a hit from the Petya ransomware attack

Reckitt benckiser pharmaceuticals

Household goods firm Reckitt Benckiser (RB) is still feeling the burn from the Petya ransomware attack on 27 June.

Although the company behind such names as Lysol cleaners and Durex condoms said the attack was now materially contained , it warned that the cyber attack did disrupt its ability to manufacture and distribute products to consumers in multiple markets.

Consequently, we were unable to ship and invoice some orders to customers prior to the close of the quarter, RB said in a statement.

Some of our factories are currently still not operating normally but plans are in place to return to full operation.

Second quarter like-for-like revenue growth was estimated to be two per cent lower mainly as a result of the ransomware attack, but RB said it is still assessing the full financial impact.

RB is one of the first companies to put a price tag on the cost of a global cyber attack after the ransomware significantly hit output at many of its more than 60 factories as well as crippling its global supply chain.

Tax changes in India also hurt sales somewhat, the company said.

Shares in the FTSE 100 company fell as much as three per cent at the market open. At the time of publishing, shares were 2.05 per cent lower at 7,542p.

Some of the revenue lost is expected to be recovered in the third quarter, however, the firm warned continued production difficulties in some factories means it also expects to lose some further revenue permanently.

As a result, full-year like-for-like net revenue growth is expected to be two per cent compared with a previous estimate of three per cent.

Other companies affected by the Petya ransomware attack included London-based advertising giant WPP, Danish shipping group Maersk, Cadbury s owner Mondelez and a number of Ukrainian and Russian businesses.

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