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Reckitt Benckiser Group PLC (RKT)

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ADrunkenMarcus
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Re: Reckitt Benckiser Group PLC (RKT)

#430687

Postby ADrunkenMarcus » July 27th, 2021, 11:25 am

Pendrainllwyn wrote:In recent years it always seems to be jam tomorrow. Getting frustrated but haven't sold yet.

Pendrainllwyn


Ditto!

ROCE collapsed when they took on all that debt. The Mead Johnson acquisition was an expensive, value-destroying mistake. At least they have superior operating margins, even if they’re dealing with current inflationary pressures. The key will be if they can maintain and expand them as promised!

I think historically Reckitt suffered from under-investment and then, as growth slowed, the previous CEO tried to fix it in an ill-judged way. What the new guy is doing, including rolling products out in new geographies, at least seems to be on the sensible side.

Best wishes

Mark

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Re: Reckitt Benckiser Group PLC (RKT)

#430782

Postby Bouleversee » July 27th, 2021, 6:50 pm

Dod101 wrote:
ADrunkenMarcus wrote:Reckitt down 9%. (The dividend yield is over 3%.)

Looks like Terry Smith was right.

Best wishes

Mark


Don't know about Terry Smith. I have never held Reckitt and never really thought much of it as a company or at least never thought much of the last CEO who seems to have done a pretty good job at wrecking the company.

Dod


I paid 728p for my holding in March 1999 and they had risen to 7938p by May 2017 so at one time I thought they were terrific. The last few years have indeed been disappointing but at today's price of 5700p they are still showing me a better return than many of my holdings, which include quite a large number of losses. I'm hoping they will pick up but who knows?

What did Terry Smith have to say about the situation?

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Re: Reckitt Benckiser Group PLC (RKT)

#430798

Postby MrFoolish » July 27th, 2021, 8:34 pm

RB's portfolio of brands is pretty dull to be honest.

These days it is easy to find better value from supermaket own brands or the generic chemical equivalents on the interweb.

20 years ago, when everyone watched linear TV, we all knew the ditty "Washing machines last longer with Calgon". Would today's youth know it?

IMHO, the brands from Unilever and PZ Cussons are a bit less generic.

ADrunkenMarcus
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Re: Reckitt Benckiser Group PLC (RKT)

#430938

Postby ADrunkenMarcus » July 28th, 2021, 11:53 am

Bouleversee wrote:I paid 728p for my holding in March 1999 and they had risen to 7938p by May 2017 so at one time I thought they were terrific. The last few years have indeed been disappointing but at today's price of 5700p they are still showing me a better return than many of my holdings, which include quite a large number of losses. I'm hoping they will pick up but who knows?


I suspect with a company like Reckitt it's a case of 'fix or be fixed'. I remember that period in 2017 and I think some were suggesting it was headed into the hundreds! I think all companies go through rough patches from time to time. I am quite prepared to believe Reckitt will not relive past glories from its golden period in the 2000s, but I think it has potential to deliver good returns. It has resilience and, indeed, paid its dividend throughout the pandemic which is more than many companies!

A few years back, Proctor and Gamble looked in a bit of a state but has recovered quite well.

Bouleversee wrote:What did Terry Smith have to say about the situation?


I believe that Terry Smith viewed Reckitt's share price as particularly strong due to temporary factors, such as the boost in cleaning during the pandemic and consequent rise in sales. He therefore sold it around the start of the pandemic in 2020, because he saw better value in other companies which had, conversely, seen temporary factors weaken their share price (such as Nike and Starbucks). These companies since recovered strongly and his fund will have enjoyed a double benefit as he's avoided the weakness in Reckitt. I do not think he thought it had fundamentally turned into a bad company, but I can't put my hands on the source.

Best wishes


Mark

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Re: Reckitt Benckiser Group PLC (RKT)

#430959

Postby monabri » July 28th, 2021, 1:31 pm

The CFO has made a top up. 1000 shares or £570k. Some other PDMRs have had minor top ups (well, minor by comparison @ 2 x £14k top ups).


https://www.investegate.co.uk/reckitt-b ... 00027502G/

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Re: Reckitt Benckiser Group PLC (RKT)

#430996

Postby simoan » July 28th, 2021, 4:11 pm

monabri wrote:The CFO has made a top up. 1000 shares or £570k. Some other PDMRs have had minor top ups (well, minor by comparison @ 2 x £14k top ups).


https://www.investegate.co.uk/reckitt-b ... 00027502G/

I don't think you should read anything into these transactions since they are mandated as part of the directors remuneration package. You will note the transactions are all described as "Purchase of shares as part of requirement for percentage of base fee to be invested in shares". I usually ignore these things, particularly the small amounts NED's have to buy as part of share purchase plans in their contracts.

All the best, Si

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Re: Reckitt Benckiser Group PLC (RKT)

#431013

Postby monabri » July 28th, 2021, 6:08 pm

simoan wrote:
monabri wrote:The CFO has made a top up. 1000 shares or £570k. Some other PDMRs have had minor top ups (well, minor by comparison @ 2 x £14k top ups).


https://www.investegate.co.uk/reckitt-b ... 00027502G/

I don't think you should read anything into these transactions since they are mandated as part of the directors remuneration package. You will note the transactions are all described as "Purchase of shares as part of requirement for percentage of base fee to be invested in shares". I usually ignore these things, particularly the small amounts NED's have to buy as part of share purchase plans in their contracts.

All the best, Si


Yes, Item (d) "Nature of Transaction" identifies as "Purchase of shares as part of requirement for percentage of base fee to be invested in shares" ....for the NED's purchase but the CFO's purchase doesn't mention this.

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Re: Reckitt Benckiser Group PLC (RKT)

#431040

Postby Wasron » July 28th, 2021, 8:11 pm

ADrunkenMarcus wrote:I believe that Terry Smith viewed Reckitt's share price as particularly strong due to temporary factors, such as the boost in cleaning during the pandemic and consequent rise in sales. He therefore sold it around the start of the pandemic in 2020, because he saw better value in other companies which had, conversely, seen temporary factors weaken their share price (such as Nike and Starbucks). These companies since recovered strongly and his fund will have enjoyed a double benefit as he's avoided the weakness in Reckitt. I do not think he thought it had fundamentally turned into a bad company, but I can't put my hands on the source.

Best wishes


Mark


Does that not possibly make the current price (and time) a much better entry point for Reckitt?

I added Diageo and Coca Cola Hellenic last year during the price weakness you mention and they’ve done well.

I’m wondering whether Reckitt’s current woes provide an opportunity to add them at a decent price, as they’re yielding over 3% for what seems like the first time in years.

I’m currently Pickering…

Wasron

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Re: Reckitt Benckiser Group PLC (RKT)

#431047

Postby ADrunkenMarcus » July 28th, 2021, 9:02 pm

Wasron wrote:
ADrunkenMarcus wrote:I believe that Terry Smith viewed Reckitt's share price as particularly strong due to temporary factors, such as the boost in cleaning during the pandemic and consequent rise in sales. He therefore sold it around the start of the pandemic in 2020, because he saw better value in other companies which had, conversely, seen temporary factors weaken their share price (such as Nike and Starbucks). These companies since recovered strongly and his fund will have enjoyed a double benefit as he's avoided the weakness in Reckitt. I do not think he thought it had fundamentally turned into a bad company, but I can't put my hands on the source.

Best wishes


Mark


Does that not possibly make the current price (and time) a much better entry point for Reckitt?


Possibly so! I did get them for a 3.6% dividend yield in 2011, so higher dividends have been on offer but I doubt very often!

Best wishes


Mark.

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Re: Reckitt Benckiser Group PLC (RKT)

#431051

Postby monabri » July 28th, 2021, 9:10 pm

ADrunkenMarcus wrote: I do not think he thought it had fundamentally turned into a bad company, but I can't put my hands on the source.

Best wishes

Mark.


Discussed a little in February 21 Annual Shareholders meeting ( certainly the trading of RKT for LVMH/ SBucks/Nike)

https://youtu.be/IojZCeUjhRg

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Re: Reckitt Benckiser Group PLC (RKT)

#431052

Postby ADrunkenMarcus » July 28th, 2021, 9:14 pm

Thanks, I'll check it out!

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Re: Reckitt Benckiser Group PLC (RKT)

#444608

Postby idpickering » September 23rd, 2021, 7:18 am

Trading Update & Launch of Investor Seminar Series

LAUNCH OF INVESTOR SEMINAR SERIES, AND TRADING UPDATE

Reckitt will today host the first of a series of 'bite size' Investor Seminars which have been designed to provide greater depth and understanding of the progress Reckitt is making in its transformation journey to deliver sustainable growth. The event will include presentations from leaders of Reckitt's three Global Business Units, as well as presentations on R&D and eCommerce.

The event will begin at 2:00pm UK time and will be live-streamed via: http://www.reckitt.com/investors/investor-news/1.

Trading update

Trading since the half year results on 27 July has been in line with management expectations.

We continue to be confident in delivering FY 2021 like-for-like net revenue growth of 0-2% and adjusted operating profit margins of between 22.7-23.2%. The disposal of IFCN China was completed on 9 September and, as previously stated, our guidance excludes the contribution of this business for the entirety of the year.

Reckitt will report Q3 results on 26 October 2021.


https://www.investegate.co.uk/reckitt-b ... 00066807M/

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Re: Reckitt Benckiser Group PLC (RKT)

#444731

Postby ADrunkenMarcus » September 23rd, 2021, 2:15 pm

Thanks Ian.

I am listening with interest. They have already confirmed they are raising their target savings from £1.6 billion to £2 billion (in four years, not three). It was, initially, £1.3 billion.

Best wishes


Mark.

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Re: Reckitt Benckiser Group PLC (RKT)

#453077

Postby idpickering » October 26th, 2021, 7:12 am

3rd Quarter Results

Q3 highlights:

* Group like-for-like ('LFL') net revenue growth of + 3.3%: broad-based growth, balanced between volume and price/mix and an encouraging start to the cold and flu season; two-year 'stacked' net revenue growth up over 18%

* Group reported net revenue decline of -6.8%: LFL growth of 3.3% was offset by a negative net M&A impact of 5.0%, primarily related to IFCN China, and adverse FX of 5.1%

* Hygiene LFL growth of +2.9%: continued growth in Finish and Air Wick, offset by a slight decline in Lysol against a very strong comparative period

* Health LFL growth of +3.6%: sharp improvement in cold and flu sales trends; lower declines in Dettol; continued positive momentum in Intimate Wellness; Biofreeze double-digit growth in Q3 (not included in LFL)

* Nutrition LFL growth of +3.8%: growth in each of the three IFCN regions, with VMS declining slightly; reported net revenue declined 20.6% reflecting the lower revenue from IFCN China

* eCommerce LFL growth +23%: 2-year 'stacked' net revenue growth of 86%

Commenting on these results, Laxman Narasimhan, Chief Executive Officer, said:

"In September, we reiterated the building blocks which will see Reckitt return to mid-single digit revenue growth and mid 20's margins. There is more to be done, but today's results are testament to our progress, with 3.3% LFL revenue growth building on the 15.3% growth of Q3 2020. We've delivered growth in each of our three GBUs and in each of our three geographic regions, with a balance of volume and price/mix across the portfolio. Nine of our ten largest brands are up double-digits on a two-year basis.

Reflecting this strength, we now expect like-for-like net revenue growth for FY 2021 in the range of 1-3%. Despite significant cost pressures, the benefits of our pricing actions, mix and productivity programme, mean our margin guidance is unchanged, and we remain confident in our medium-term outlook."



https://www.investegate.co.uk/reckitt-b ... 00041987Q/

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Re: Reckitt Benckiser Group PLC (RKT)

#453104

Postby ADrunkenMarcus » October 26th, 2021, 9:15 am

The results are quite pleasing to me with a maintained guidance outlook for margins. That seems good given the current circumstances! Reckitt needs to demonstrate pricing power AND volume growth for the future.

The market seems to like them, with RKT (the new ticker) up over 4%. In a nice symmetry, my RSW holding is up over 4% today as well.

Best wishes


Mark.

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Re: Reckitt Benckiser Group PLC (RKT)

#468317

Postby idpickering » December 24th, 2021, 7:11 am

Proposed Sale of E45 to Karo Pharma

24 December 2021 - Slough, UK - Reckitt Benckiser Group plc ("Reckitt") is pleased to announce that it has entered into an agreement for the proposed sale of its E45 brand and related sub-brands (the "Proposed Sale") to Karo Pharma ("Karo") for an implied enterprise value of £200 million. For the financial year ended 31 December 2020, the brands had a combined net revenue of £43 million.

The Proposed Sale, if completed, would be another step forward in Reckitt's plan to actively manage its portfolio for higher growth, following the recent divestments of its IFCN business in China and its Scholl brand, as well as the acquisition of Biofreeze.


https://www.investegate.co.uk/reckitt-b ... 00037008W/

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Re: Reckitt Benckiser Group PLC (RKT)

#481098

Postby idpickering » February 17th, 2022, 7:10 am

Final Results.

STRONG 2021 REVENUE, AHEAD OF EXPECTATIONS.
STRENGTHENED PORTFOLIO. TRANSFORMATION FIRMLY ON TRACK

Highlights
• Full year LFL net revenue growth of +3.5% (+17.4% on a two-year stacked basis1
) ahead of
expectations led by a strong performance in Hygiene and a recovery in Health as we exited the
year.
• Q4 LFL net revenue growth of +3.3% with Health (+17.5%) offsetting Hygiene (-6.1%) lapping
tough prior year comparators.
• Strong momentum: Brands less sensitive to COVID dynamics, representing c.70% of the portfolio
grew, on average, by mid-single-digits in each quarter of 2021.
• Strong progress in repositioning our business towards higher growth. Key highlights include
the divestments of IFCN China and Scholl, the proposed disposal of E45, and the acquisition of
Biofreeze. Approximately 9% of the portfolio repositioned.
• Adjusted operating margin (ex IFCN China) of 22.9% in line with guidance. Adjusted operating
loss related to IFCN China of £67m, reflecting difficult trading throughout the year and c.£40m of
exit costs incurred immediately prior to the disposal of the business.
2
• IFRS operating loss of £804m (2020: £2,160m profit) reflects the loss in relation to the strategic
review and disposal of IFCN China.
• Proposed full year dividend of 174.6p (2020: 174.6p) reflecting Board recommendation of a final
dividend of 101.6p.

And later;

Dividends
The Board of Directors recommends a final 2021 dividend of 101.6 pence (2020: 101.6 pence),
consistent with its policy and guidance from February 2020. The ex-dividend date will be 28 April 2022
and the dividend will be paid on 9 June 2022 to shareholders on the register at the record date of 29
April 2022. The last date for election for the share alternative to the dividend is 17 May 2022.


https://www.investegate.co.uk/reckitt-b ... 00089272B/

88V8
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Re: Reckitt Benckiser Group PLC (RKT)

#481135

Postby 88V8 » February 17th, 2022, 10:36 am

What caught my ear was the comment on t'wireless this morning that Reckitt are experiencing 11% inflation in their supply chain.
So eventually that will be coming out of your pocket. A flat divi will not help paying for it.

V8

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Re: Reckitt Benckiser Group PLC (RKT)

#481141

Postby ADrunkenMarcus » February 17th, 2022, 10:49 am

88V8 wrote:What caught my ear was the comment on t'wireless this morning that Reckitt are experiencing 11% inflation in their supply chain.
So eventually that will be coming out of your pocket. A flat divi will not help paying for it.

V8


The frozen dividend was something flagged in the 2020 strategy update so we have to hope growth will resume in 2022-23.

I was pleased by the margin commentary as it seems they’re absorbing price rises.

Best wishes

Mark

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Re: Reckitt Benckiser Group PLC (RKT)

#481144

Postby simoan » February 17th, 2022, 10:52 am

ADrunkenMarcus wrote:I was pleased by the margin commentary as it seems they’re absorbing price rises.

I would have thought it was quite the opposite if margins are being maintained and they are passing on input cost increases to customers rather than absorbing them?


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