1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Dear Guest, we realise advertising is annoying, it is however necessary to help us be a sustainable resource for all, if you want to go advert free then please use the following link to subscribe for £5 a month: Click here
    Dismiss Notice

(RKT) Reckitt Benckiser share chat

Discussion in 'General Share Chat' started by Groucho, Oct 27, 2021.

  1. Groucho

    Groucho Member

    Messages:
    9,136
    Reputation:
    374
    23 September 2021

    RECKITT (RKT.L)

    LAUNCH OF INVESTOR SEMINAR SERIES, AND TRADING UPDATE

    Reckitt will today host the first of a series of 'bite size' Investor Seminars which have been designed to provide greater depth and understanding of the progress Reckitt is making in its transformation journey to deliver sustainable growth. The event will include presentations from leaders of Reckitt's three Global Business Units, as well as presentations on R&D and eCommerce.

    The event will begin at 2:00pm UK time and will be live-streamed via: www.reckitt.com/investors/investor-news/1.

    Trading update

    Trading since the half year results on 27 July has been in line with management expectations.

    We continue to be confident in delivering FY 2021 like-for-like net revenue growth of 0-2% and adjusted operating profit margins of between 22.7-23.2%. The disposal of IFCN China was completed on 9 September and, as previously stated, our guidance excludes the contribution of this business for the entirety of the year.

    Reckitt will report Q3 results on 26 October 2021.
     
  2. Groucho

    Groucho Member

    Messages:
    9,136
    Reputation:
    374
  3. Groucho

    Groucho Member

    Messages:
    9,136
    Reputation:
    374
  4. Groucho

    Groucho Member

    Messages:
    9,136
    Reputation:
    374
    EFA1B9F3-0B59-4EE3-8881-BE4F4F40F166.jpeg
    Yorkshire Post 27/10/2021
     
  5. Groucho

    Groucho Member

    Messages:
    9,136
    Reputation:
    374
    Reckitt announces the Proposed Sale of E45 to Karo Pharma


    24 December 2021 - Slough, UK - Reckitt Benckiser Group plc ("Reckitt") is pleased to announce that it has entered into an agreement for the proposed sale of its E45 brand and related sub-brands (the "Proposed Sale") to Karo Pharma ("Karo") for an implied enterprise value of £200 million. For the financial year ended 31 December 2020, the brands had a combined net revenue of £43 million.

    The Proposed Sale, if completed, would be another step forward in Reckitt's plan to actively manage its portfolio for higher growth, following the recent divestments of its IFCN business in China and its Scholl brand, as well as the acquisition of Biofreeze.


    Laxman Narasimhan, Chief Executive Officer of Reckitt, said:

    "E45 is an iconic, trusted skincare brand that over 60 years has become a leader in science-based skincare. As we shift from a brand-led to a category-led growth strategy, we are focusing on high growth categories with brands we can stretch into new places and spaces to support our medium-term growth ambitions, including 4-6% growth in Health. Now is the right time to pass E45 on to a new owner, and we are confident that Karo will build on the strength of the E45 brand to capture the significant opportunities ahead."

    The Proposed Sale is subject to the satisfaction of customary closing conditions, including consultation with employee representatives in France. Subject to the satisfaction of those conditions, the Proposed Sale of the E45 business is expected to close in the second quarter of 2022.


    About E45

    E45 is a leading science-based skincare brand that produces an extensive range of specially formulated products to help manage dry or itchy skin, and conditions such as eczema, dermatitis, psoriasis and ichthyosis. The brand was founded in 1952 and has a long history of innovation and category leadership. Reckitt acquired the brand as part of its acquisition of Boots Healthcare International in 2005. The Proposed Sale includes the E45 brand and its Bactopur, Eryplast, HC45, Hydrafnia, Immulia, Lutsine, Seboskin and Xeramance sub-brands.
     
  6. Groucho

    Groucho Member

    Messages:
    9,136
    Reputation:
    374
  7. Groucho

    Groucho Member

    Messages:
    9,136
    Reputation:
    374
    EAE572A3-C82F-4E58-869A-2190D662A18F.jpeg
    Investors Chronicle 25/02/2022
     
  8. Groucho

    Groucho Member

    Messages:
    9,136
    Reputation:
    374
    7F31A97A-BBF0-4B8A-BD80-AFAAA2F11853.jpeg

    High inflation is likely to put severe pressure on profit margins across a wide range of industries and many businesses will struggle to offset higher input costs with price rises and efficiency gains.

    As a result, Reckitt Benckiser’s aim to grow, rather than merely maintain, its operating margins over the next few years will, if achieved, give it some scarcity value.

    The global consumer goods business expects its adjusted operating margin to rise from 22.9pc in the 2021 financial year to a mid-20s level by the middle of the decade. A progress report on this and other areas is expected in a first-quarter trading update scheduled for release on Friday.

    In Questor’s view, the company’s plan to achieve its margin growth target is sound. It expects to deliver productivity gains to partially offset rising costs; it has already realised £1.1bn in such gains since the start of 2020.

    Meanwhile, it intends to pass input cost inflation on to its customers via price rises. Its stable of health, hygiene and nutrition brands enjoys a high degree of customer loyalty that suggests consumers are willing to pay more instead of trading down to cheaper alternatives.

    Portfolio repositioning is another key strategy for the firm in its quest to grow profit margins. In the 2021 financial year it repositioned 9pc of its portfolio to higher-growth, higher-margin areas.

    For example, it sold its infant formula and child nutrition business in China and the Scholl footcare brand, which were dilutive to profit margins. Although this process contributed heavily to a reported operating loss of £804m in 2021, it positions the firm for superior long-term growth.

    As well as disposals, Reckitt acquired Biofreeze, a pain treatment firm. This provides entry to the lucrative American pain management market and could offer an additional growth opportunity. The company has also shifted focus to faster growing regions such as the Americas and south-east Asia within its underperforming nutrition segment.

    B368AEF0-D4FA-459B-A020-9669BEE0D8E5.jpeg
    Meanwhile, its existing brands have enjoyed a relatively sound performance in terms of their market position. In 2021, for example, 62pc of the company’s core brands either maintained or gained market share. And, with a 50pc expansion in its innovation pipeline over the past two years, Reckitt should be in a strong position to differentiate its products from those of rivals to further strengthen its market position.

    Separately, the company’s continuing investment in digital sales further positions it for long-term growth. In Britain and America, for example, the online share of retail sales has risen from around 7pc in both countries to 25pc and 20pc respectively over the past decade.

    The company’s online sales have grown by more than 85pc over the past two years and now account for 12pc of the total. They are expected to double as a proportion of total revenue within five years. As a result, Reckitt is in a good position to adapt to evolving consumer spending habits.

    In terms of income, the stock’s 2.8pc dividend yield lags that of the FTSE 100 by half a percentage point. It plans to maintain the dividend per share at current levels until it is covered twice by net profits. Since it was covered 1.7 times in 2021, dividend growth could be a medium-term aspiration – albeit one that is likely to benefit from its plan to grow dividends in line with net profits once the minimum coverage requirement has been met.

    Reckitt’s shares have risen by less than 1pc since our buy recommendation in March last year. Over the same period the FTSE 100 has gained 13pc. While this is clearly a disappointing relative return, Questor retains its upbeat view of the company’s long-term prospects.

    Its wide range of strong brands puts it in a better position than most businesses to overcome a period of high inflation. Further investment in product innovation and e-commerce, alongside mergers and acquisitions activity and asset sales, should improve its growth potential.

    As a result, we retain our buy recommendation on a long-term view.

    Sunday Telegraph 24/04/2022
     
  9. Groucho

    Groucho Member

    Messages:
    9,136
    Reputation:
    374

Share This Page