Reckitt to Sell Russian Hygiene Business at £175 Million Loss

By the Editorial Team · Saturday, July 25, 2026

Reckitt is selling its Russian hygiene business to Arnest Management at a £175 million loss, marking the final step in its planned exit from the Russian market following the Ukraine invasion. The deal, expected to close in late 2026, allows Reckitt to comply with EU sanctions while limiting financial impact on its overall profits and retaining control of its global brand rights.

Reckitt, the British consumer goods company known for brands such as Dettol and Durex, is set to sell its Russian hygiene business at a £175 million loss, four years after committing to exit the market following Russia’s invasion of Ukraine. The deal involves transferring the operation to Arnest Management, a Russian manufacturer of household goods, drinks, and packaging. The transaction includes a production facility near Moscow, local brand rights, and approximately 400 employees who will transition to Arnest. Reckitt will retain ownership of its global brand rights and its separate Russian consumer health business.

The sale, which remains subject to regulatory approval, is expected to be completed in the second half of 2026. Reckitt anticipates recognizing about £125 million of the post-tax loss in its financial results for the first half of the year, with the full £175 million impact reflected in the 2026 annual results. Despite the loss, Reckitt’s management indicated that the transaction should not materially affect the group’s adjusted operating profit or earnings per share.

Reckitt first announced its intention to leave the Russian market in April 2022, two months after Russia launched its military campaign in Ukraine. At that time, the company condemned the war as “unconscionable,” aligning with the broader exodus of Western multinationals from Russia. Reckitt’s Russian business accounted for roughly 2 percent of its group revenue in 2021, with the hygiene segment representing about 1 percent of core group revenue by 2025.

The decision to sell the hygiene unit comes amid tighter European Union sanctions impacting supply chains and restrictions on foreign companies’ ability to exit the Russian market. Reckitt highlighted that these limitations have resulted in only limited financial proceeds from the disposal. The hygiene division comprises the Moscow-based factory and locally owned brand intellectual property.

Reckitt has worked with Arnest since 2023, citing the latter’s experience in managing domestic Russian assets acquired from multinational firms. The company has maintained a “multi-layered sanctions compliance framework” throughout the ongoing conflict, ceasing capital investments and advertising in Russia while stating that EU sanctions have not affected the import and distribution of its healthcare products in the country.

The sale also reflects Reckitt’s broader strategic restructuring, which has included divesting a majority stake in a portfolio of homecare brands to private equity and managing challenges such as regulatory issues in China that have affected Durex sales and competitive pressures in European homecare markets. The company’s shares have declined by about 20 percent this year, though some analysts have recently upgraded their outlook, noting resilient core sales despite these challenges. As of the latest trading, Reckitt’s market valuation stands at approximately £31.4 billion.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.