The Lemon Fool

https://www.investegate.co.uk/announcem ... ts/8059644

The results have not gone down well! Down 9% as I type.

Even at the current share price, the dividend yield is 3.7% and thus little different in valuation compared to when I bought in 2011.

I have a small holding but performance has not been amazing.

Best wishes


Mark

https://www.reuters.com/legal/reckitt-u ... 024-03-14/

The market really didn't like this.

"March 14 (Reuters) - An Illinois jury has ordered Reckitt Benckiser (RKT.L), opens new tab unit Mead Johnson to pay $60 million to the mother of a premature baby who died of an intestinal disease after being fed the company's Enfamil baby formula.
The jury in an Illinois state court in St. Clair County on Wednesday found that Mead Johnson was negligent and that it failed to warn of the risk of necrotizing enterocolitis (NEC). The disease, which causes the death of bowel tissue, mostly affects premature newborns and has a fatality rate of about 15% to 40%."

"Mead Johnson said in a statement that it was disappointed with the verdict and would appeal it.
"We continue to believe that the allegations from the plaintiff's lawyers in this case were not supported by the science or experts in the medical community," it said."

"More than 400 NEC lawsuits against Mead Johnson and Abbott are pending in federal court in Chicago, and others, like Watson's are in state courts.
Plaintiffs in the cases say that the companies concealed the fact that their formula, including products made specifically for premature infants and others, was riskier than alternatives like donor milk.
The companies have denied the allegations.
The NEC lawsuits are separate from ongoing litigation against Abbott over the shutdown of its Sturgis, Michigan, plant and subsequent recall of batches of baby formula for possible contamination, which contributed to a nationwide formula shortage in 2022."

The shareprice was down nearly 20% on the day at one point, reaching £41.90 (down from £52.26).

There's me thinking these non HYP type shares are supposed to be a bit more stable pricewise! Maybe it can now be reclassed and moved into my HYP portfolio

monabri wrote:The shareprice was down nearly 20% on the day at one point, reaching £41.90 (down from £52.26).

There's me thinking these non HYP type shares are supposed to be a bit more stable pricewise! Maybe it can now be reclassed and moved into my HYP portfolio

Hmmm. Beginning to look interesting. I don't generally buy anything below 4% yield. RKT is knocking on the door of that. Share price way off year highs.

BullDog wrote:

monabri wrote:The shareprice was down nearly 20% on the day at one point, reaching £41.90 (down from £52.26).

There's me thinking these non HYP type shares are supposed to be a bit more stable pricewise! Maybe it can now be reclassed and moved into my HYP portfolio

Hmmm. Beginning to look interesting. I don't generally buy anything below 4% yield. RKT is knocking on the door of that. Share price way off year highs.

192.5p dividend ( trailing 12m) / 4486p shareprice : yield on offer of 4.29%

Regardless of the outcome, the Mead Johnson acquisition has caused so many issues!

Today's substantial fall takes Reckitt down to my smallest individual company holding, only 1.4 percent of the portfolio. Not sure it is worth it.

Best wishes


Mark.

Share Buyback Programme - Third Tranche.

On 25 October 2023, Reckitt Benckiser Group plc ("Reckitt" or the "Company") announced a £1billion share buyback programme (the "Programme"), the purpose of which is to reduce the share capital of the Company.

And later;

Reckitt today announces its intention to commence a third and final tranche of the Programme (the "Third Tranche") which will return a further up to £500 million of capital to shareholders. The Third Tranche will commence two days after the completion of the Second Tranche (anticipated to be during April 2024) and the Third Tranche is anticipated to end during July 2024.

https://www.investegate.co.uk/announcem ... he/8108591

Ian (No holding).

1st Quarter Results.

Commenting on these results, Kris Licht, Chief Executive Officer, said:

"We have delivered a good first quarter. Following a period of price-led growth, we are now returning to a more balanced contribution from price, mix and volume. We grew volumes in many of our powerbrands in the quarter, including Lysol, Dettol, Durex and Finish, as well as our non-seasonal OTC portfolio. In addition, we continue to benefit from carryover pricing and consumers trading up to our premium innovations.

The net revenue performance in the quarter is in line with our expectations. Hygiene delivered broad-based growth. Health saw good growth across many brands, reduced by a tough comparator in our cold & flu OTC brands. Nutrition continues to normalise in the US as expected, and we have maintained our value market share leadership.

We are well placed to deliver value creation by leveraging our strong portfolio of brands through investment and innovation. This drives our continued strong free cashflow generation, our accelerated share buyback programme and increased cash returns to shareholders.

https://www.investegate.co.uk/announcem ... ts/8153185

Ian (No holding).