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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 15 research reports from 4 professional analysts.

Date Source Announcement
05Dec16 07:00 RNS Transaction in Own Shares
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
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A not so ‘Healthy’ Q3

  • 02 Jan 17

An unsatisfactory quarter for Reckitt Benckiser, reporting one of the weakest underlying sales performances in recent times (lfl growth of 2% vs. consensus estimate of 2.8%; 4% in Q2 16 and 7% in Q3 15). This was even below its closest peers – Unilever recorded 3.2% underlying growth while P&G grew by 3% during the same quarter. The major disappointment stemmed from the waning Health segment while contraction in Home and Portfolio aggravated the woes further. However, Hygiene’s sustained growth momentum provided some solace. On the positive side, strong forex tailwinds (+15%, thanks to a falling sterling) pushed up sales that grew 17% on a reported basis to £2.6bn. From a geographical point of view, after growing moderately in the previous quarters (2% lfl in Q2 16 and 3% in Q1 16 vs. 5% in FY 15) Europe, North America and Australia/New Zealand (ENA) turned flat this quarter, impacted by a lower than expected Scholl/Amope uptake and a weak Russia. As a result, the Rest of ENA contracted 1% while North America remained flat. However, despite being held back by the HS issue in South Korea (mid single-digit growth shaved off from the overall uptick), developing markets (DvM) continued their surge, albeit slightly slower than in previous quarters (7% lfl vs. 8% in Q2 16 and 10% in Q1 16). Both China and India performed strongly with the former benefiting from an increasing penetration in e-commerce (30% of sales), while the latter from an uptick in Dettol and Harpic sales. Given the ongoing headwinds (weak Russia, HS issue in South Korea and the Scholl slowdown), management has lowered its sales guidance and is now targeting revenue growth of 4% lfl for FY 16 compared to the previously communicated “lower end of 4-5%”. On the margin front, guidance remained unchanged with a moderate operating margin expansion in H2.

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.

Breakfast Today

  • 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.