Reckitt to divest Russia hygiene business as 2026 loss charge nears £175 million

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Reckitt divests Russia hygiene business

Highlights

Reckitt Benckiser Group agreed to divest its Russian Hygiene business to Arnest Management LLC, accounting for a post-tax loss of about £175 million by 2026.
The transaction’s completion is expected in the second half of 2026, subject to UK regulatory approvals, and will mainly involve assets held as restricted cash.
Divestment from the Russia Hygiene business is not expected to materially affect Reckitt's adjusted operating profit or EPS in 2026, despite a 200 basis-point revenue headwind in Emerging Markets.

Transaction terms and accounting effects

As reported by the London Stock Exchange's Regulatory News Service, Reckitt Benckiser Group plc has agreed to divest its Russian Hygiene business to Arnest Management LLC. The company says the business is now being accounted for as held for sale and will continue to contribute to Core Reckitt like-for-like net revenue until the transaction completes.

Reckitt says restrictions linked to exits from the Russian market and the expected economics of the deal limit the recoverable amount from the sale. It expects to recognise a post-tax loss of about £175 million in the full year ending 31 December 2026, including about £125 million in the six months ended 30 June 2026.

The assets of the Russian Hygiene entity consist predominantly of cash that was previously reported as restricted. Completion is expected during the second half of 2026, subject to customary conditions, including relevant UK regulatory approvals.

Impact on operations and emerging markets

Reckitt retains ownership of its Russia Health business, which continues to supply consumer health products. The group says the divestment is not expected to have any material impact on the delivery of its adjusted operating profit or adjusted EPS in 2026.

In its Q1 2026 results, Reckitt said changing international sanctions affecting the Russia Hygiene business created a headwind of about 200 basis points on Emerging Markets like-for-like net revenue. The company expects that impact to continue at a similar level until the divestment is completed.

Our earlier article on expanded U.S. sanctions on Cuba explained how Washington designated multiple entities and individuals linked to the energy sector, financial services, and overseas medical missions to restrict access to foreign-currency revenues. We also noted that such designations can freeze U.S.-controlled property and heighten compliance and secondary-sanctions risks for companies, banks, and intermediaries engaging in transactions connected to sanctioned parties or sectors.

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