- FY Sales Forecast Revision: Reckitt now expects like-for-like sales growth of 1% to 3%, down from the previous 2% to 4%.
- Interim Dividend: Interim dividend per share is 80.4p, higher than the estimated 74.1p.
- Net Revenue: Net revenue for the first half is GBP 7.17 billion, nearly matching the estimate of GBP 7.18 billion.
- Like-for-Like Sales: 0.8%, slightly below the estimate of 1.11%.
- Volume Performance: Volume decreased by 1.3%, more than the estimated decrease of 0.85%.
- Price/Mix Improvement: Increased by 2.1%, better than the estimated 1.94%.
- Adjusted Operating Profit: GBP 1.68 billion, exceeding the estimate of GBP 1.64 billion.
- Segment Performance:
- Hygiene: Adjusted operating profit GBP 654 million, above the estimate of GBP 634.7 million. Operating profit margin 21.4%, higher than the estimated 20.7%.
- Health: Adjusted operating profit GBP 819 million, higher than the estimate of GBP 805.1 million. Operating profit margin 27.8%, above the estimated 27.6%.
- Nutrition: Adjusted operating profit GBP 210 million, surpassing the estimate of GBP 201.6 million. Operating profit margin 18%, better than the estimated 17%.
- Second Quarter Sales: Like-for-like sales were flat at 0%, not meeting the estimate of 0.59%.
- Health Segment: Sales grew 1.7%, under the estimate of 2.32%.
- Hygiene Segment: Sales grew 1.9%, below the estimate of 2.54%.
- Nutrition Segment: Sales declined 8.1%, better than the estimated 9.01% decrease.
- Regional Performance:
- North America: Sales declined 3.6%, aligning closely with the estimate of a 3.67% decrease.
- Europe/ANZ: Sales grew 2.2%, falling short of the estimated 3.36% growth.
- Developing Markets: Sales grew 1.4%, below the estimate of 3.33% growth.
- Volume and Price/Mix in Q2:
- Volume: Decreased by 2.2%, more than the estimated decrease of 1.39%.
- Price/Mix: Increased by 2.2%, exceeding the estimate of 1.96%.
- Q2 Net Revenue: GBP 3.43 billion, close to the estimate of GBP 3.44 billion.
- Segment Revenues in Q2:
- Health: GBP 1.40 billion, matching the estimate.
- Hygiene: GBP 1.45 billion, slightly below the estimated GBP 1.47 billion.
- Nutrition: GBP 575 million, higher than the estimated GBP 559.7 million.
- Future Outlook:
- The company expects FY adjusted operating profit to grow ahead of net revenue growth.
- Revenue growth expected to accelerate in the second half.
- Plans to increase the dividend and initiate a £1 billion share buyback over the next 12 months.
- FY LFL revenue growth outlook revised due to temporary supply disruption from a July
A look at Reckitt Benckiser Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.0 |
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 manufacturer of household, toiletry, health, and food products, is poised for a promising long-term outlook. Known for its wide array of consumer goods, the company has received strong Smart Scores in key areas. With a high Growth score of 5, Reckitt Benckiser is expected to maintain robust expansion in the future, indicating potential for increasing market share and profitability.
Additionally, the company’s solid Dividend score of 4 highlights its commitment to rewarding shareholders and generating sustainable returns. Although Value, Resilience, and Momentum scores are not as high, the combination of growth and dividend strengths suggests a positive trajectory for Reckitt Benckiser Group PLC in the coming years.
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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