- Reckitt has raised its full-year forecast for Core Reckitt like-for-like sales growth to above 4%, previously seen between 3% to 4%.
- The company reported interim dividend per share of 84.4p, up from 80.4p last year, surpassing the estimate of 81.0p.
- First half net revenue reached GBP6.98 billion, slightly below the estimate of GBP7.04 billion.
- In the first half, like-for-like sales grew by 1.5%, just under the estimated increase of 1.62%.
- Volume decreased by 1.1%, whereas the consensus had anticipated a slight decrease of 0.18%.
- Price/mix increased by 2.6%, exceeding the estimate of 2.52%.
- Adjusted operating profit was GBP1.71 billion, surpassing the market estimate of GBP1.69 billion.
- Adjusted operating margin achieved was 24.6%, higher than the estimated 23.9%.
- Second-quarter like-for-like sales increased by 1.9%, lower than the forecast of a 2.19% increase.
- Core Reckitt’s second-quarter like-for-like sales saw a significant rise of 5.3%, ahead of the 3.42% estimate.
- Essential Home like-for-like sales declined by 5.9%, underperforming the estimate of a 2.86% decrease.
- Mead Johnson’s like-for-like sales dropped by 6.2%, compared to an anticipated 2.02% decline.
- Second-quarter net revenue was GBP3.30 billion, slightly below the estimate of GBP3.35 billion.
- Core Reckitt second-quarter revenue reached GBP2.38 billion, surpassing expectations of GBP2.35 billion.
- Essential Home revenue stood at GBP429 million, below the estimated GBP450.6 million.
- Mead Johnson revenue amounted to GBP493 million, missing the forecast of GBP520.4 million.
- The company expects another year of adjusted EPS growth.
- A share buyback program of £1.0 billion is set to commence imminently.
- Reckitt anticipates continued quarterly improvements in Essential Home, expecting a low single-digit decline in like-for-like net revenue for the year.
- Guidance for Mead Johnson Nutrition has been upgraded to expect low-to-mid single-digit like-for-like net revenue growth in 2025, with recovery from the July 2024 Mount Vernon tornado.
- Reckitt maintains medium-term expectations for Core Reckitt to achieve a like-for-like net revenue growth of 4% to 5% consistently.
- Analyst recommendations include 12 buys, 9 holds, and no sells.
A look at Reckitt Benckiser Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| 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 of household, health, and food products, presents a mixed outlook based on the Smartkarma Smart Scores. While the company scores well in Dividend with a score of 4, indicating a positive outlook for dividend payouts to investors, its Value score of 2 suggests a more moderate valuation. Growth, Resilience, and Momentum scores all fall in the mid-range at 3, pointing to steady but not exceptional performance in these areas. The company’s diverse product portfolio includes fabric treatments, disinfectants, personal care items, and over-the-counter drugs.
Looking ahead, Reckitt Benckiser Group may offer investors a consistent dividend income, backed by a stable product line that includes essential household and health products. While not a top performer in terms of growth and momentum, the company’s resilience score hints at its ability to weather market fluctuations. With a balanced overall assessment across different factors, Reckitt Benckiser Group’s long-term prospects appear steady, offering investors a mix of reliability and potential for sustained returns in the future.
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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