Lysol Maker Reckitt to Offload Sanctions-Hit Russian Hygiene Business — Update

By Aimee Look

U.K. consumer goods company Reckitt Benckiser said it agreed to divest of its hygiene arm in Russia, which has been dragging on sales due to changes to European Union sanctions on the country.

The maker of Durex condoms and Mucinex cold medicine said Friday that it was selling the Russian hygiene unit to Arnest Management. It didn't disclose financial terms of the deal, but said the business represented around 1% of Reckitt's net revenue in 2025.

The deal with Russia's Arnest Management, which manufactures cosmetics and household goods, is expected to complete during the second half of 2026, Reckitt said. The British company will retain ownership of its Russian health business, it said.

Reckitt's business in Russia weighed on first-quarter results, posting a double-digit slump in like-for-like net revenue and representing a 2 percentage-point drag on emerging markets net revenue growth. Until the divestment is complete, the impact is expected to continue at a similar level, Reckitt said Friday.

The move to sell Reckitt's hygiene business comes after changes made last year to the EU's sanctions package on businesses operating in Russia hit locally produced germ protection and cleaning products.

Since the recoverable amount in the deal will be limited, an after-tax loss of 175 million pounds ($233 million) will be recognized in the company's 2026 results, it said.

The proceeds from the deal look negligible, and the limited recoverable amount is common with other companies' exits from Russian businesses in recent years, RBC analyst James Edwardes Jones wrote in a note to clients.

"The disposal of the Russian hygiene entity extricates the company from a business that cast a shadow over its first-quarter results," the analyst said.

Write to Aimee Look at aimee.look@wsj.com

(END) Dow Jones Newswires

July 24, 2026 04:52 ET (08:52 GMT)