In_the_dark_yet_again
27 Jul 2018
9% jump I think those are a fabulous set of numbers, barely a fly in the ointment. Looks like some profit taking on the earlier highs following a pretty decent run in recent months but seems to have calmed down. I really did think about a switch out of all my ULVR into RB following the news of them going back to Holland and leaving the FTSE100 but don’t like too many eggs in one basket. Maybe too late now. Regards, ITDYA
Gamesinvestor1
27 Jul 2018
9% jump Nice move up - well in profit at last. Results were well received and the growth expectations have been revised up to 14-15%. Pre Tax Profits up 9.5% Keep selling that baby milk. Games
Hydrogen Economy
18 May 2018
Re: Increased competition is the problem Hi DougThe rise is not keeping up with the market, it seems far from clear that the downtrend is over. I expect it will recover, but to do so I think it will need to show progress on driving sales and margins, especially in emerging markets and to start milking bigger returns from MJ. H2
Uncle Doug
17 May 2018
Re: Increased competition is the problem SP risen 9% in a few weeks and plenty of room to run yet. Still a bargain IMO. Pricing power and well respected brands.
EssentialInvestor
23 Apr 2018
Re: Increased competition is the problem You don't need to go to China, Aldi, Lidl in the UK, how many RB. Productsdo they stock?, Discounters continue to rapidly take market share.Go in to any large Boots store in the UK and there are now a proliferation ofcheaper generic pain killers etc.This is happening, litle point sticking your head in the sand.Now may be RB. Can continue to thirve in this environment,however last week's statement may indicate increasing market challenges, all just IMV only.
sage in the hills
21 Apr 2018
Re: Reaction to good news .... Mr Hacked off ....... i would be inclined to hold and wait.Who knows, with the reaction shown to this data, what lies in store if there is furthersluggishness on Scholl and baby foods.New investment opportunities elsewhere i feel.SAGE
aspace
20 Apr 2018
Re: 18 X forward earnings? Essentialinvestor - yes my calcs agree with yours. Hence my earlier comment about not being impressed with RB's PE and dividend yield. There are better opportunities out there. Uncle Doug - I hope you're right, not that I hold much in RB or ULVR nowadays. But on a recent visit to China I surveyed numerous stores in a couple of different cities and found RB's and ULVR's shelf dominance eroded by local Chinese and even Japanese brands in such items as household cleaning and condoms. They had less shelf space than my previous visit two years ago. And Enfamil was nowhere to be seen. I used to live in Beijing. ULVR was everywhere in those days and even Tesco had a few stores.
Uncle Doug
20 Apr 2018
Re: Increased competition is the problem No problem, just an excellent buying opportunity. Strong £ doesn't help but that won't last forever. This is what's known as a correction and the recent fall is still in line with the long term projection of RB. Investors are very short term these days - look at the 5 or 10 year charts. People when they want Gaviscon, Durex or Clearasil are not going to opt for a supermarket own label to save few bob. Add to this the pricing power RB have ... any price drop and customers would come flooding back to stock up on their Harpic or Cillit Bang. Brands have been around for centuries and I see no reason why they will disappear because of Amazon or Aldi. Global reach and marketing superiority will win out as it always has done. Just go to a supermarket abroad next time you're on holiday and see how much dominance RB has in brands you've never even heard of. This is a blip in time and one of the best bargains in the FTSE right now. Rest assured the fund managers will be stocking up at these prices. Normal service will soon be resumed. Grab yourself a bargain.
EssentialInvestor
20 Apr 2018
18 X forward earnings? If I'm calculating that correctly, too high imv.Lower yield that ulvr, higher gearing than ulvr, is the RB. Product portfolioas good as ulvr?, Not in my book. Ulvr on 19x approx .
EssentialInvestor
20 Apr 2018
Re: Increased competition is the problem You need to look at the sector from a global, not just a UK perspective,however the observation still has some validity. It's something many postershave referenced here, and on many financial sites.
pharmaspecialist
20 Apr 2018
Increased competition is the problem I don't think the (initially) negative share price reaction to today's announcement necessarily has reasons which are specific to RB. I know from previous experience that it is an unpopular view, but I believe that branded household and food products are receiving increased competition from multiple directions and this is creating long term headwinds for companies that sell them. Competitors include internet sellers such as Amazon (as cited by Hargreaves Lansdown) and the impact of private label goods which form a large proportion of sales at the most rapidly growing retailers such as Aldi and LIdl. For brand name consumer product companies, the continuing expansion in developing markets is barely keeping up with margin erosion in the developed markets. I would not expect the companies to publicise this as it is a pretty fundamental problem for their business model. I notice that Aldi (90% of goods are unbranded) has started stocking Branston pickle at virtually the same price as its own brand and I think this is an illustration of the type of difficulty which branded goods companies are experiencing in maintaining their margins. I would suggest that this competition may be less intense for some brand name based companies like Diageo and Brown-Forman as I think alcoholic drink brands and some beverage companies such as Fevertree are less susceptible (though not immune) to private label competition as most people don't like to serve their guests with cheapo drinks. However, I have reduced my exposure to the likes of RB and Unilever and their US nearest equivalents, even though I have, until very recently, been a major fan of such companies.
schwee
20 Apr 2018
Re: Reaction to good news .... Sales per se are a false metric; it is margins that matter and the RNS was somewhat ambivalent about those, now and in the future.
EssentialInvestor
20 Apr 2018
Where is the pricing power ? N/m
aspace
20 Apr 2018
Re: Reaction to good news .... At first reading that doesn't look particularly good. Sales jumping 23% on currency and because new acquisitions are included when like for like is only up 2% isn't great to anybody who understands English. Once again Mr Kapoor is showing his incredible ability to disappoint. Not impressed. Had already sold out. Not looking to get back in either until these are on a sensible PE and dividend yield.
Mr Hacked off
20 Apr 2018
Re: Reaction to good news .... Hi Sage, what do you reckon on this, Has it bottomed ? Would you buy now or wait ?
