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Research, Charts & Company Announcements

Research Tree offers RECKITT BENCKISER GROUP PLC research coverage from 3 professional analysts, and we have 8 reports on our platform.

Our simple but effective charting function allows for a quick scan of RECKITT BENCKISER GROUP PLC's performance over multiple time horizons.

Date Source Announcement
25/10/2016 17:15:24 London Stock Exchange Director/PDMR Shareholding
25/10/2016 07:00:05 London Stock Exchange Transaction in Own Shares
24/10/2016 07:00:06 London Stock Exchange Transaction in Own Shares
21/10/2016 16:54:24 London Stock Exchange Director/PDMR Shareholding
20/10/2016 16:46:25 London Stock Exchange Share Repurchase Programme
19/10/2016 07:00:06 London Stock Exchange Q3 2016 Trading Update
06/10/2016 17:35:42 London Stock Exchange Director/PDMR Shareholding
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Latest Content

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.

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).

Supercharge(d) margins drive outperformance

  • 18 Aug 15

Reckitt Benckiser (RB) carried on its strong momentum into the second quarter, with Q2 15 results coming in ahead of market expectations (both revenue and profitability). Strong LFL performance (5% yoy growth) and moderating fx headwinds (negative 4% impact vs. a negative 11% in Q2 14) resulted in revenue growing 1% yoy to £2.1bn (£4.4bn in H1 15). Despite demanding comps, Consumer Health continued to soldier on, reporting a robust 13% LFL growth – its best in the last eight quarters, while Hygiene remained sluggish (3% LFL growth vs 4% in Q2 14). On the other hand, the decline in Home and Portfolio Brands turned out to be more modest than our expectation (2% and 14% reported decline, vs. our expectation of 4% and 40% decline, respectively), supporting the growth in underlying performance. Profitability too surpassed expectations, with the company reporting H1 15 adjusted operating margin of 21.9% (160bp yoy improvement), which was only slightly below our expectation of 22.3%. Geographically, all the regions met expectations (North America and developing markets up 3% and 8%, respectively), except for Rest of ENA, which was impacted by volume declines in Russia (partially offset by price rises). Given the robust performance, management has revised its earnings guidance upwards — LFL growth to be 4–5% (earlier 4%) while the negative currency impact is now expected to be >3% (1-2% as per earlier estimation). Margins are expected to be ‘moderate-to-nice’ in H2 15, with annualised cost savings from the Supercharge programme to fall in the upper end of the previously announced range of £100–150m. The company also announced a 50.3p interim dividend (pay-out ratio of 50%).