- Sales Performance: Reckitt’s like-for-like sales grew by 1.1%, falling short of the estimated 1.78%.
- Core Business Sales: Core Reckitt performed better than expected at 3.1% versus the forecasted 2.78%.
- Essential Home Struggles: Essential Home sales decreased by 7%, significantly missing the estimate of a 3.06% drop.
- Mead Johnson Outperforms: Mead Johnson’s sales declined by 0.5%, doing better than the expected 2.7% fall.
- Volume and Pricing: Sales volume increased by 0.3%, beating the estimate of 0.05%. Price/mix rose by 2.8%, surpassing the predicted 1.36%.
- Revenue Figures: Net revenue hit GBP3.68 billion, slightly below the expected GBP3.69 billion.
- Core Reckitt Revenue: Revenue stood at GBP2.63 billion, aligning perfectly with expectations.
- Essential Home Revenue:** Revenue was GBP482 million, lower than the estimated GBP503.2 million.
- Mead Johnson Revenue:** Achieved GBP571 million, outperforming the estimated GBP552.2 million.
- Year Forecast: Reckitt maintains its forecast of 2% to 4% like-for-like sales growth, with estimates suggesting 3.24%.
- Separation Plans: Reckitt continues to progress the separation of Essential Home, aiming for exit in 2025.
- Expected EPS Growth: The company anticipates another year of adjusted EPS growth.
- Geographical Growth Outlook: Core Reckitt expects strong growth in emerging markets and varied performance in other regions.
- Second-Half Growth Prediction: Anticipates more balanced growth in all regions, with North America returning to growth.
- Tariff and Supply Chain Monitoring: Reckitt is closely observing global tariffs and their potential impact.
- Cost Management Confidence: Reckitt is confident in mitigating cost impacts over the short to medium term.
- Analyst Recommendations: There are 11 buy ratings, 11 hold ratings, and no sell ratings for Reckitt.
A look at Reckitt Benckiser Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Reckitt Benckiser Group PLC, a global leader in household, health, and food products, shows a promising long-term outlook based on its Smartkarma Smart Scores. With a solid Dividend score of 4 and a strong Momentum score of 4, the company demonstrates stability and positive market performance. Additionally, its Growth and Resilience scores of 3 suggest a balanced approach to expansion and risk management. While the Value score of 2 indicates room for improvement in terms of stock valuation, overall, Reckitt Benckiser Group appears well-positioned for sustained growth and shareholder returns.
Manufacturing and distributing a diverse range of essential products worldwide, including fabric treatments, cleaners, personal care items, and over-the-counter drugs, Reckitt Benckiser Group PLC stands as a reliable player in the consumer goods industry. Investors taking note of its favorable Dividend, Growth, Resilience, and Momentum scores should view the company as a potential long-term investment with the capacity for steady profitability and market success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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