Reckitt Benckiser Group (LSE:RKT) has agreed to sell its Russian Hygiene business to Arnest Management, with completion expected in the second half of 2026.
The consumer health and hygiene group said Russia Hygiene accounted for roughly 1% of Core Reckitt's net revenue in the year ended 31 December 2025.
Reckitt expects to recognise a post-tax loss of approximately £175 million for the full year to 31 December, of which roughly £125 million will fall in the six months to 30 June.
The company said restrictions on exiting the Russian market the recoverable amount, and that the divested entity's assets consist predominantly of cash previously classified as restricted.
Reckitt will retain its Russia Health business, which continues to supply consumer health products in the country.
At its first-quarter results, Reckitt flagged that shifting international sanctions were creating a headwind of approximately 200 basis points on Emerging Markets like-for-like net revenue, an impact it expects to persist at a similar level until the deal closes.
The transaction is not expected to have any material impact on Reckitt's group adjusted operating profit or adjusted earnings per share for 2026.
News Intelligence what this means for the company
Reckitt is divesting its Russian Hygiene business to Arnest Management, crystallising a £175 million post-tax loss driven by sanctions-related restrictions on capital recovery. The unit represented roughly 1% of Core Reckitt's net revenue in 2025, and the company expects the loss to have no material impact on adjusted operating profit or adjusted earnings per share in 2026, suggesting the exit is a contained write-down rather than a profit driver.
The sale removes a geopolitically constrained asset and clarifies Reckitt's Russia exposure going forward—the company retains its Russia Health business but exits Hygiene. The £175 million loss is material in absolute terms but represents a one-time charge on a company with a market cap in the £20–30 billion range; the company's guidance that adjusted metrics will not be materially affected suggests the market should treat this as a balance-sheet event rather than an operational deterioration.
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