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Reckitt Benckiser (RKT)

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ADrunkenMarcus
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Re: Reckitt Benckiser (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 (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?

MrFoolish
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Re: Reckitt Benckiser (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 (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 (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/

simoan
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Re: Reckitt Benckiser (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 (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 (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 (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 (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

ADrunkenMarcus
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Re: Reckitt Benckiser (RKT)

#431052

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

Thanks, I'll check it out!

idpickering
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Re: Reckitt Benckiser (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/

ADrunkenMarcus
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Re: Reckitt Benckiser (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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