Reckitt Benckiser Group Live Discussion

Uncle_Doug 29 Jan 2020

Rise and Fall Love a good virus, me. Sales of Dettol, Cillit Bang, Nurofen likely to soar. The inevitable panic should also cause Durex sales to balloon. SP @6277

Gamesinvestor1 01 Oct 2019

Rise and Fall RB shares rose strongly last week and then plummeted again this week. Sterling isn’t substantially different, so is there a leaky mole in the system warning some of poor results to come? Games

Hydrogen_Economy 02 May 2019

Eat That Baby Food Agree, very uninspiring results. MJ a little healthier but worrying statements like “Market growth has slowed due to lower birth rates in China in 2017 and 2018.” Not enough Chinese babies doesn’t sound a convincing excuse, especially when they also say “In Greater China, supply of our product remains tight as we work our way back from the manufacturing disruption in Q3 last year”. Creative excuses have become too big a feature of RB reports of late, sadly they have had too much practice and too many self inflicted opportunities. The Invidior scandal could turn yet more ugly and the Korean scandal continues. Wonder if Terry Smith is regretting this one? I offloaded over half my holdings a while back, now looking for a chance to dump the rest. H2

In_the_dark_yet_again 02 May 2019

Eat That Baby Food LSE:RB [link] Spectacularly dull 1st Quarter update. I judge it even duller (poorer) than the recent ULVR update… then again Q1 for RB has tended to be slow in recent years. Regards, ITDYA thinking nothing has changed since yesterday, certainly nothing significantly enough to cause me to have a major rethink…yet

Uncle_Doug 21 Mar 2019

Eat That Baby Food Back out again - sold @6320. Luvly Jubly.

Uncle_Doug 28 Feb 2019

Eat That Baby Food Bought back some of these bad boys again @5761. Easy money.

Ruski_Boris 22 Feb 2019

Unilever takeover Fill ya boots!!! 7000p+ it’s on

Ruski_Boris 22 Feb 2019

Unilever takeover Unilever takeover? Was rumoured last year… would be a good time… Strong buy for me

Gamesinvestor1 19 Feb 2019

Eat That Baby Food Moi aussi - I’m only in RB now and out of ULVR - RB is - quick check - 2.05% of my wad. Also back into PZ Cussons after the big sell off. Games

In_the_dark_yet_again 19 Feb 2019

Eat That Baby Food @Uncle_Doug 69xx, they will get there… just I’m giving no prediction of when! Looks like your timing of your sale was impeccable though. I’m sitting tight, very glad about the few I picked up the other week at 5599 although I do have no idea when this will poke it’s head back up above £70 but convinced it will at some point. I definitely prefer it to ULVR, even up here. Regards, ITDYA

picstIoup 19 Feb 2019

10‰ up yoy Very decent Q4 results, glad I topped up last March, even if it has been a hairy last couple of years. Sharecast News) - Reckitt Benckiser mopped up the final quarter of last year in fine style and the maker of consumer brands ranging from Dettol to Strepsils said it expects that momentum to continue into 2019. Register for Reckitt Benckiser Group Plc share research updates Net revenue of £12.6bn for the calendar year was a 10% improvement on the previous period, boosted by £3.3bn in the final three months, which was up 4% on a like-for-like basis versus the average analysts forecast of 3.3%. Adjusted net income at the FTSE 100 group grew 11% to £2.4bn as the adjusted operating margin grew 20 basis points on a pro forma basis to 26.7% but was down 60bps on a reported basis, as analysts expected. Adjusted earnings per share improved 7% to 339.9p, benefitting from 10p from the resolution of various tax matters, compared to the 328p consensus estimate. At the bottom line at the reported level, incorporated discontinued operations, EPS was down 65% to 304.8p. With free cash flow generation of £2.0bn, down from £2.13bn the year before, directors recommended a final dividend up 3% to 100.2p making for a total dividend for 2018 of 170.7p, an increase of 4%. Chief executive Rakesh Kapoor, who surprised the market last month with his plan to retire by the end of this year, characterised 2018 as “a year of good financial progress, achieved in an environment of both significant change within the company, and challenging market conditions”. He hailed the revenue growth at the upper end of target and the acceleration of cost synergies from the acquisition of baby food specialist Mead Johnson Nutrition, with £158m achieved during the year. The year also saw the company’s strategy develop, with the RB2.0 project focused on growth and increasing market share, with the division of the group into two end-to-end accountable units, RB Health and RB Hygiene Home. Last year the Health business grew 2% on a LFL basis, with improving performance from Infant and Child Nutrition but lower than average incidence of cold and 'flu in the fourth quarter, which will create a drag on the first quarter of 2019. Hygiene Home made a good improvement with 4% LFL growth, broad-based across brands, led by growth in Harpic and Lysol, and strong performances also from Finish, Air Wick and Vanish. “For 2019 we expect momentum to continue, and target +3-4% LFL net revenue growth,” said Kapoor. “We expect to maintain the adjusted operating margin as we generate our usual RB cost and efficiency savings, and deploy them into building two even stronger businesses.” His chairman, Chris Sinclair, said the search for a successor to Kapoor was under way, with both internal and external candidates needing to “fit with the distinctive culture of RB and consistent with execution of RB2.0”. The shares rose 4.5% to 6,288p by mid morning on Monday. As Goldman Sachs saw it, growth was driven by strong growth in the US, offset by slower growth in China owing to the effects of the supply disruptions in the third quarter impacting on-shelf product availability. While IFCN was short of expectations, the rest of Health was ahead and Hygiene Home also outperformed expectations. “Management’s guidance implies modest downgrades to consensus earnings expectations for 2019, all else equal, owing to the adjusted operating margin guide which is 40bp below consensus.” Morgan Stanley noted that after the Kapoor’s retirement announcement, the stock had fallen to three-year lows “on concerns for a weak Q4, a major margin reset and a potential change of strategic direction under a new CEO away from the planned split into two internal business units”. MS analysts said they believed these “solid results, chairman statement, LFL guidance, mini-reset and extended presentation later today provides significant reassurance…Of course, to some the stock will remain a ‘show me story’ (not least with the reset and cautious Q1/Q2 guidance on Mead and Flu) and it is still easy to make the argument that the shares will remain in the penalty box”. But MS sees the shares “offering very good value, with a growing operational momentum/turnaround and clear strategic optionality”. George Salmon, analyst at Hargreaves Lansdown, said: "An improved performance from the recently acquired infant nutrition business has helped Reckitt’s results come in slightly ahead of expectations. However, a strong showing in North America is masking continued problems in the key Chinese market, which is still hamstrung by weaker demographics and ongoing supply chain issues. On Kapoor’s retirment after eight years at the helm, he said whoever takes over “will be inheriting an attractive business, but after incurring the disruption of a cyber attack and the infant nutrition business still causing a few sleepless nights, there are teething problems to overcome”. “With Reckitt’s divisions clearly divided into Health and Hygiene and Home, we wouldn’t rule out the new CEO following in the footsteps of GSK and overseeing a break-up of the business. Whatever lies ahead, it promises to be an intriguing year for the group.”

Uncle_Doug 18 Feb 2019

Eat That Baby Food Sold my ULVR last week and offloaded a tranche of RB. today @6322 for a quick 12% gain. I didn’t expect to make so much gain in a month!!! I’ll leave the other RB. tranches running as I can see more upside here - I want those to get to 69xx. We’ll see.

In_the_dark_yet_again 18 Feb 2019

Eat That Baby Food LSE:RB I have to say that’s a much better set of numbers than those produced by ULVR a few weeks back… still think they overpaid for Mead and know only too well that a 1st set of post major acquisition results always allow room for accountants to play their games but they look pretty decent. I could get busy and try to reverse the Mead effect back out of the numbers but I suspect it’s a tad pointless given the market reaction to these results… yes, they did overpay but maybe not quite as rudely over-the-top as first suspected. Regards, ITDYA, very happy with the 5599 purchase just wishing I’d had more cash (or the conviction to sell the ULVR to raise some!). Oh well…

sueneave9 18 Feb 2019

Eat That Baby Food Nice rise today

Gamesinvestor1 18 Feb 2019

Eat That Baby Food [link] Reckitt posted a pretax profit of GBP2.72 billion for 2018, up 8.8% from GBP2.50 billion in 2017, having acquired US baby formula maker Mead Johnson Nutrition in June 2017. This made it the first full year of contribution from Mead Johnson, taking infant formula & child nutrition revenue to GBP2.84 billion from GBP1.56 billion. This was in line with company-compiled market consensus. Group revenue totalled GBP12.60 billion, a 10% rise from GBP11.45 billion the year before and in line with consensus of GBP12.59 billion. Reckitt declared a final dividend of 100.2 pence per share, up 2.6% from 97.7p the year before. This bought its total dividends paid for the year to 170.7p from 164.3p, an increase of 3.9%. Games