Durex maker warns of cyberattack revenue hit


Shares in the household goods firm Reckitt Benckiser (RB) have fallen after it admitted the effects of last month’s major cyberattack would result in a loss of sales.

The FTSE 100 company, which has the Nurofen, Dettol and Durex brands in its stable, said the malware was still affecting some operations – more than a week after it took hold of systems worldwide.
It said: “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.”
It added: “The continued production difficulties in some factories mean that we also expect to lose some further revenue permanently.”

Image: Picture of a computer screen displaying the message shown to hacked computers
RB forecast like-for-like revenue growth in its second quarter would take a 2% hit.
It said that while it expected some of the sales lost in the second quarter would be recouped in the current quarter, continuing supply chain disruption meant it could lose customers.

As a result, it forecast 2% growth in annual like-for-like revenues instead of the 3% originally expected.
Its shares lost more than 2% in early trading.
Last Tuesday’s attack – the latest in a string of similar incidents including the ransomware that crippled the NHS – is believed to have originated in Ukraine, though investigators say they are following a complicated trail for leads.
Local authorities have carried out raids but made no arrests as part of their efforts to find those responsible for the malware, named Petya, which swept across more than 60 countries.
It targeted Microsoft’s Windows operating system by encrypting hard drives and overwriting files.
The disruption was felt by many other major companies including fellow FTSE 100 constituent WPP, Russia’s state-owned oil firm Rosneft, FedEx and Ukraine’s largest banks.
Authorities in Kiev have pointed the finger of blame at long-time foe Russia, suggesting the attack must have been state sponsored, though Moscow has always denied any link to electronic interference allegations.

Source: Sky

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