Reckitt reported strong H1 20 results, beating consensus as well as our estimates. Sales were up 11.9%, driven by Hygiene (+16.1%) and other health (+22.7%). The top-line growth was mainly attributable to volumes (+11%), which largely contributed to a 90bp expansion in operating margin (24.5%). Following the strong H1, management now expects high single-digit growth in FY20 (vs higher than 0.8% previously) with margin expectations unchanged (-350bp vs FY19). We will be raising our estimates.
05 Aug 2020
Hygiene worries drive a strong H1 20 showing
Reckitt Benckiser Group plc (RB:LON) | 6,611 -1983.3 (-0.5%) | Mkt Cap: 47,148m
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Virendra Chauhan
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4 pages
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Hygiene worries drive a strong H1 20 showing
Reckitt Benckiser Group plc (RB:LON) | 6,611 -1983.3 (-0.5%) | Mkt Cap: 47,148m
- Published:
05 Aug 2020 -
Author:
Virendra Chauhan -
Pages:
4 -
Reckitt reported strong H1 20 results, beating consensus as well as our estimates. Sales were up 11.9%, driven by Hygiene (+16.1%) and other health (+22.7%). The top-line growth was mainly attributable to volumes (+11%), which largely contributed to a 90bp expansion in operating margin (24.5%). Following the strong H1, management now expects high single-digit growth in FY20 (vs higher than 0.8% previously) with margin expectations unchanged (-350bp vs FY19). We will be raising our estimates.