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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.

Date Source Announcement
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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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.

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).