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Research Tree provides access to ongoing research coverage, media content and regulatory news on RECKITT BENCKISER GROUP PLC. We currently have 8 research reports from 3 professional analysts.
|02Dec16 04:00||RNS||Director/PDMR Shareholding|
|02Dec16 07:00||RNS||Transaction in Own Shares|
|01Dec16 09:45||RNS||Total Voting Rights|
|01Dec16 07:00||RNS||Transaction in Own Shares|
|30Nov16 07:00||RNS||Transaction in Own Shares|
|29Nov16 07:00||RNS||Transaction in Own Shares|
|28Nov16 07:00||RNS||Transaction in Own Shares|
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RECKITT BENCKISER GROUP PLC
RECKITT BENCKISER GROUP PLC
Robust results marred by South Korean HS issue
26 Aug 16
Reckitt Benckiser’s Q2 16 results came in below ours as well as consensus estimates (miss of 3.2% and 1.7%, respectively) as the South Korean Humidifier Sanitiser (HS) dispute turned out to be a bigger issue than earlier anticipated/ communicated by the company. Net revenue grew 6% to £2.3bn (3% cc, 4% lfl), with lost sales in the Asian nation (1.5% of FY 15 sales) lopping off 1ppt from top-line growth in the quarter. While an exceptional expense of £300m has been recognised (represents RB’s estimates for the compensation to be paid out to the Category I&II victims from rounds 1-3 assessment), the company does not rule out further escalation as more claimants are identified. Operationally, after outperforming the category growth rate of 4-6% multiple quarters in a row, Health witnessed a slowdown (5% lfl growth vs. 10% in the previous quarter) due to lower than anticipated uptake of the new Scholl/ Amope range. However, this was counterbalanced by the strong revival in Hygiene (lfl growth of 7% vs. 3% in Q1 16 and 4% in Q4 15). Home (-1% lfl) and Portfolio Brands (-8% lfl) segments showed weakness due to the fallout of the South Korean HS issues. Despite the top-line miss, lower input costs and benefits from project Supercharge buttressed margins (adjusted operating margin for H1 16 improved 180bp to 23.7%, although the outperformance is unlikely to be repeated in H2). Geographically, ENA’s growth was markedly slow (+2% lfl vs. +3% in Q1 16 and +5% in FY 15) as weakness in Russia and the rest of Europe (lower Scholl sales) offset the firm performance in North America (+3% lfl vs. +1% in Q1 16 and +3% in FY15). However, Emerging markets (DvM) continued their strong run with an lfl growth of 8% (although lower than the double-digit growth anticipated in the absence of the Sanitiser issue). Following the above-mentioned issues, the company has softened its FY 16 lfl revenue growth guidance to the lower end of the previously communicated range of 4-5%. It also expects operating margin expansion to be more moderate in H2 with waning input tailwinds. Meanwhile, management has announced an interim dividend of 58.2p per share, a c.16% yoy increase.
01 Aug 16
Friday's second quarter GDP data from the US showing annualised growth of just 1.2%, versus consensus closer to 2.5%, left traders disappointed. Up from the 0.8% recorded in Q1'16 but still way below expectations, odds on September as the date of the Fed's next rate hike fell from 18% to just 12%, as the market began to question whether it was still realistic to continue forecasting two 25bp rises during calendar 2016. With S&P 500 corporates so far having delivered more than half their quarterly reports and, for the most part, only selected tech stocks producing earning comfortably ahead of expectations, US indices closed mixed with the Dow Jones ending fractionally negative while the NASDAQ moved similarly in the other direction. Having delivered six consecutive months of gains, investors are now fearing that in the absence of some new positives from either camp, this record will end up broken in August. Asian shares were also mixed in today's trading, with the principal focus remaining on Japanese fiscal policy. Prime minister, Shinzo Abe, is expected to unveil as much as an Y28tr stimulus package on Tuesday following BOJ Governor, Kuroda's, somewhat disappointing monetary package on Friday. Concerns remain, however, that this amount will effectively be spread over several years and that new spending in fact will be quite limited; having suffered quite sharp losses on the opening, the Nikkei nevertheless bounced back into the positive by the session's end as the Yen continued to strengthen. The commodity-heavy ASX also recorded convincing gains, while the Shanghai Composite and Hang Seng moved in opposite directions, as the Chinese PMI fell below consensus and pointed uncomfortably to contracting activity levels. The UK today, along with other western territories including the US and Eurozone, is due to release its own PMI data, while corporates including Fidessa (FDSA.L), Intertek (ITRK.L), Senior (SNR.L) and Trinity Mirror (TNI.L) are due to report half year results. The FTSE-100 is seen opening up around 40-points in early trading.
Robust operations amid multiple distractions
09 May 16
Of late, Reckitt Benckiser (RB) has been constantly in the news, but not necessarily for the right reasons. From a public and regulatory backlash for misleading customers in Australia and Korea to shareholders’ disapproval of the CEO’s recommended compensation and the uncertainty surrounding the Brexit issue (courtesy its UK address), the company has been embroiled in several controversies, which, not surprisingly, have overshadowed the otherwise stellar operating performance, resulting in the stock underperforming the AlphaValue peer universe in the past month (0.2% return vs. c.2% for the peers). Operationally, the company commenced the year on a positive note, with Q1 16 turning out to be another strong quarter (trading update so only top-line results disclosed) with lfl growth of 5% (although slightly below the 7% and 6% organic growth in Q4 and FY 15, respectively). More importantly, receding currency headwinds meant that the reported growth was a robust 4% (1% and 0% in Q4 and FY 15, respectively). The Health segment continued to be the key growth driver (+10% lfl growth), while the Hygiene and the Home segments remained resilient with lfl growths of 3% each. Geographically, while ENA was up 3% (lfl), developing markets increased 10% (lfl). The company has reiterated its FY 16 guidance of lfl net revenue growth of 4-5% and moderate margin expansion. However, reported numbers are expected to go up significantly as the company has now upgraded its forex tailwinds’ expectation to 5% from the earlier 1%. In addition, management has also announced a £800m share buy-back programme for 2016.
Strong and healthy on innovation dose
27 Oct 15
Reckitt Benckiser (RB) remained unbeaten in its third innings this year, recording strong growth in its Q3 15 trading update – 7% LFL sales growth (6% ytd), outperforming the previous quarter's results (5% and 3% LFL growth in Q2 15 and Q3 14, respectively) and comfortably beating consensus expectations. As expected, growth was driven by the core Health and Hygiene businesses (8% LFL growth in Q3, 7% ytd), which benefited from a strong innovation pipeline and strengthening consumer demand. As a positive surprise, Portfolio Brands’ hitherto sluggish run witnessed a reversal in trend (the segment reported 5% LFL growth vs. a 6% and 23% decline in Q2 15 and Q3 14, respectively) on the back of the strength in laundry detergents and fabric softeners. On the flipside, currency headwinds intensified in the quarter, completely offsetting the underlying gains (7% forex impact vs. 4% in the previous quarter), resulting in the overall revenue declining by 1% yoy to c.£2.2bn (there was a negative 1% M&A impact related to the KY acquisition and disposal of the Russian Hospitals business). Geography-wise, growth remained broad-based – ENA grew 6% LFL (on easy comps and strength in Scholl/Amope, Lysol and Airwick) while developing markets reported a robust 10% growth (a mixed picture here, as a strong India and China was challenged by a weaker outlook for Brazil and South East Asia) Driven by the encouraging LFL performance (6% ytd), RB's management has upgraded its FY 15 guidance for the second consecutive quarter — full-year LFL target has now been increased to 5% from the previous 4–5% (requiring a modest 2-2.5% LFL growth in the fourth quarter).
Panmure Research - Consumer Staples 11-09-15
11 Sep 15
The consumer staples sector continues to trade on well above average historic and market average multiples despite a lack of earnings growth over 2014-15. This has been due to being perceived as ‘low risk' and cash generative with the ability to continue to pay and grow dividends. However cashflow cover of dividends has declined, and a further round of emerging market currency devaluations could have a severe impact on the ability to grow dividends unless they can grow earnings in the developed world. In the short term the performance of the sector is likely to be overshadowed by the potential interest rate increase in the US. We would have an in-line weighting in the UK consumer staples sector. Within that we remain positive on the tobacco subsector and Hilton Foods Group and retain the Sell rating on Associated British Foods. We move PZ Cussons from Sell to Hold
Panmure Morning Note 01-12-16
01 Dec 16
Consistent with the FY16 trading update/pre-close on September 14, today’s FY16 results are in line with our and consensus underlying PBT expectations of £12.5m (+22.5% YoY). The total FY16 dividend is up 36%, covered 3.4x, whilst net cash is £6.9m (+53%). FY16 represented another good year of execution, and FY17 has started well. The company's business mix is now more diverse across geographies (International accounted for 26% of total sales vs 21% in FY15) and we see CCT’s increasing diversity in retail distribution as both a further risk-mitigation and opportunity driver. We make no changes to our FY17 and FY18 PBT forecasts of £13.5m and £14.5m (albeit, we make some changes to the constituent parts) and introduce a FY19 PBT of £15.5m. We maintain our BUY and TP of 635p.
Strong H2 expected
30 Nov 16
H1 results were in line with expectations with PBT of £9.0m, EPS of 9.9p and DPS of 7.2p. The NAV / share is 253p. We expect the company to have a strong H2 based on its forward sales position and the timing of developments coming through. Telford has a strong balance sheet, a large development pipeline and impressive forward sales position, as well as good levels of demand for its product and geography from a diverse group of buyers. No change to forecasts at this stage.
US$500m to be invested in start-ups by 2026
28 Nov 16
BMW started a venture capital fund in 2011 with an initial investment of $100m. This is now to be expanded to $500m within the next ten years. The fund, called ‘BMW i Ventures’, has been moved from NYC to Mountain View, CA, to have closer access to the technology developed in the Silicon Valley. The investment focus will be on Enabling Technology and Digital Vehicle Technology, Mobility and Digital Services, Customer Experience, and Advanced Production Technology. According to BMW, the fund has closed 15 deals in ‘mobility-related’ technologies so far. It typically acquires a minority stake in start-ups which allows it to gain access to external innovations (so-called ‘outside-in’) that secure the company’s role as a technology pioneer. Simultaneously, it provides support for start-ups by offering internal resources (so-called ‘inside-out’) such as technical expertise and access to its own network of an established car producer.
N+1 Singer - Morning Song 29-11-2016
29 Nov 16
Vp has reported another impressive set of interims, confirming strong growth in most markets and a positive outlook. Recent acquisitions are bedding in well and the full year outturn is set to exceed previous expectations (5%/6% EPS upgrades in FY17/FY18). The recent Capital Markets Day provided a reminder of Vp’s qualities (specialist focus, high returns, strong cash generation) and its growth potential, which in our view are not reflected in a modest <11x P/E rating. We firmly believe the shares are due a re-rating and see intrinsic value in excess of 800p.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
Small Cap Breakfast
29 Nov 16
Asia Pacific Investment Partner - the research-driven emerging and frontier markets real estate development business intends to float on AIM and conduct a placing in December RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December. Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.