- Reckitt revises its forecast for full-year like-for-like sales growth to 1% to 3%, down from the previous forecast of 2% to 4%.
- Interim dividend per share announced at 80.4p, surpassing the estimated 74.1p.
- First half net revenue stands at GBP7.17 billion, slightly below the estimate of GBP7.18 billion.
- First half like-for-like sales growth reported at 0.8%, below the estimated 1.11%.
- Volume decline of 1.3%, compared to the estimated decline of 0.85%.
- Price/mix increase of 2.1%, slightly above the estimated 1.94%.
- Adjusted operating profit for the first half recorded at GBP1.68 billion, higher than the estimated GBP1.64 billion.
- Hygiene segment adjusted operating profit reaches GBP654 million, exceeding the estimate of GBP634.7 million.
- Health segment adjusted operating profit at GBP819 million, higher than the estimated GBP805.1 million.
- Nutrition segment adjusted operating profit at GBP210 million, surpassing the estimate of GBP201.6 million.
- Overall adjusted operating margin reported at 23.5%, compared to the estimated 22.9%.
- Hygiene adjusted operating profit margin stands at 21.4%, above the estimated 20.7%.
- Health adjusted operating profit margin at 27.8%, slightly higher than the estimated 27.6%.
- Nutrition adjusted operating profit margin at 18%, higher than the estimated 17%.
- Second quarter like-for-like sales at 0%, below the estimated 0.59%.
- Second quarter Health like-for-like sales growth of 1.7%, short of the estimated 2.32%.
- Second quarter Hygiene like-for-like sales growth at 1.9%, versus the estimated 2.54%.
- Nutrition like-for-like sales in the second quarter declined by 8.1%, better than the estimated decline of 9.01%.
- North America like-for-like sales decline by 3.6%, in line with the estimated decline of 3.67%.
- Europe/ANZ like-for-like sales growth at 2.2%, lower than the estimated 3.36%.
- Developing markets like-for-like sales growth at 1.4%, below the estimated 3.33%.
- Second quarter volume decline of 2.2%, versus the estimated decline of 1.39%.
- Price/mix increase of 2.2% in the second quarter, above the estimated 1.96%.
- Second quarter net revenue reported at GBP3.43 billion, slightly below the estimate of GBP3.44 billion.
- Health revenue in the second quarter matches the estimate at GBP1.40 billion.
- Hygiene revenue in the second quarter at GBP1.45 billion, below the estimated GBP1.47 billion.
- Nutrition revenue in the second quarter at GBP575 million, exceeding the estimated GBP559.7 million.
- Reckitt expects adjusted operating profit to grow faster than net revenue for the full year.
- Company anticipates acceleration in revenue growth in the second half of the year.
- Plans to increase dividends and initiate a new share buyback program of £1 billion over the next 12 months.
- Like-for-like revenue growth revision attributed to temporary supply disruption caused by the July 9 tornado in Mount Vernon, Indiana, affecting the Nutrition business.
- Announcement of a strategic update to refine their portfolio and simplify the organization.
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 and distributor of household, toiletry, health, and food products, is positioned for long-term success based on its Smartkarma Smart Scores. With a high Growth score of 5, the company shows potential for continuous expansion and development in various markets. Additionally, a strong Dividend score of 4 indicates solid returns for investors seeking income from their investment in the company.
While Reckitt Benckiser Group scores lower in Value, Resilience, and Momentum, its strong Growth and Dividend scores suggest a promising outlook for the company’s future performance. Investors may find the company attractive for its growth prospects and dividend payments amidst its diverse product portfolio spanning fabric treatments, disinfectants, personal care, food, and more.
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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