Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

Reckitt Benckiser Group PLC (RKT)

Share latest information on individual companies and hot news discussions. LSE Main Market companies only
Forum rules
No penny shares or promotional posts
idpickering
The full Lemon
Posts: 11276
Joined: November 4th, 2016, 5:04 pm
Has thanked: 2468 times
Been thanked: 5763 times

Reckitt Benckiser Group PLC (RKT)

#202032

Postby idpickering » February 18th, 2019, 10:27 am

[Highlights of full year results] Can be seen here; viewtopic.php?f=15&t=16306

Ian.
Moderator Message:
Clarification added. - Chris

idpickering
The full Lemon
Posts: 11276
Joined: November 4th, 2016, 5:04 pm
Has thanked: 2468 times
Been thanked: 5763 times

Re: Reckitt Benckiser Group PLC (RKT)

#235761

Postby idpickering » July 11th, 2019, 7:57 am

Agreement to resolve all federal investigations

11 July 2019, Slough ‐ RB today announced it has reached agreements with the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) to resolve the long-running investigation into the sales and marketing of Suboxone Film by its former prescription pharmaceuticals business Indivior, a business that was wholly demerged from the Group in 2014.


https://www.investegate.co.uk/reckitt-b ... 00032026F/

Share up 1.7% on opening.

idpickering
The full Lemon
Posts: 11276
Joined: November 4th, 2016, 5:04 pm
Has thanked: 2468 times
Been thanked: 5763 times

Re: Reckitt Benckiser Group PLC (RKT)

#240355

Postby idpickering » July 30th, 2019, 7:28 am


idpickering
The full Lemon
Posts: 11276
Joined: November 4th, 2016, 5:04 pm
Has thanked: 2468 times
Been thanked: 5763 times

Re: Reckitt Benckiser Group PLC (RKT)

#259387

Postby idpickering » October 22nd, 2019, 7:15 am


ADrunkenMarcus
Lemon Quarter
Posts: 1584
Joined: November 5th, 2016, 11:16 am
Has thanked: 672 times
Been thanked: 479 times

Re: Reckitt Benckiser Group PLC (RKT)

#259426

Postby ADrunkenMarcus » October 22nd, 2019, 12:38 pm

At 5600p, the forward dividend yield - based on 2020 estimates of 178p DPS - is 3.2%. I bought at 3.6% in 2011. These results are not great. They are going through a rough patch and it will be good to see their ROCE rise back towards historic levels if they're able to grow profitability and get the debt down.

Best wishes

Mark

Breelander
Lemon Quarter
Posts: 4178
Joined: November 4th, 2016, 9:42 pm
Has thanked: 999 times
Been thanked: 1855 times

Re: Reckitt Benckiser Group PLC (RKT)

#287046

Postby Breelander » February 27th, 2020, 8:53 am

2019 RESULTS AND CONCLUSIONS OF STRATEGIC REVIEW
https://www.investegate.co.uk/reckitt-b ... 00092715E/

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Reckitt Benckiser Group PLC (RKT)

#287056

Postby Dod101 » February 27th, 2020, 9:50 am

I am glad to say I have never held RB. Quite a disastrous acquisition of MJN judging by the big write down of goodwill. Even the underlying business is not doing very well.

'Going through a rough patch' to quote ADrunkenMarcus sounds like an understatement. And just to compound the misery, yet another company freezing its dividend.

Actually I actively avoid most of their products as I simply do not like them so I cannot see myself ever buying these shares.

Dod

yorkshirelad1
Lemon Slice
Posts: 906
Joined: October 5th, 2018, 1:40 pm
Has thanked: 176 times
Been thanked: 299 times

Re: Reckitt Benckiser Group PLC (RKT)

#287093

Postby yorkshirelad1 » February 27th, 2020, 11:57 am

Dod101 wrote:I am glad to say I have never held RB. Quite a disastrous acquisition of MJN judging by the big write down of goodwill. Even the underlying business is not doing very well.
'Going through a rough patch' to quote ADrunkenMarcus sounds like an understatement. And just to compound the misery, yet another company freezing its dividend.
Actually I actively avoid most of their products as I simply do not like them so I cannot see myself ever buying these shares.
Dod


Full year Dividend 170.7->174.6 (+2.2%)
And I am told lots of people are buying Dettol products these days (hand sanitisers, wipes....)

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Reckitt Benckiser Group PLC (RKT)

#287097

Postby Dod101 » February 27th, 2020, 12:09 pm

'Recognising the importance of a consistent dividend, we intend to sustain our dividend pay-out at the 2019 sterling level until we rebuild cover to around 2 times'

The above is a quote from the announcement this morning. That is saying they are to freeze the dividend at the 2019 level for a while. Judging by the fact that they have announced a three year recovery programme I suspect shareholders may be waiting for some time for an increase.

I use Dettol products but what I do not like are the Bang products.

Dod

monabri
Lemon Half
Posts: 8396
Joined: January 7th, 2017, 9:56 am
Has thanked: 1539 times
Been thanked: 3428 times

Re: Reckitt Benckiser Group PLC (RKT)

#287224

Postby monabri » February 27th, 2020, 6:25 pm

One I considered, then decided to invest in Diageo instead...but with far from perfect timing in Dec 19 /Jan 20.... Bloomin' Covid-19!

ADrunkenMarcus
Lemon Quarter
Posts: 1584
Joined: November 5th, 2016, 11:16 am
Has thanked: 672 times
Been thanked: 479 times

Re: Reckitt Benckiser Group PLC (RKT)

#287235

Postby ADrunkenMarcus » February 27th, 2020, 7:32 pm

The dividend for 2019 of 174.6p is almost what had been forecast for 2021 anyway - 175.2p. A freeze is frustrating but at least we know what to expect for a couple of years. The statement about paying down debt is welcome. However, RB has not been a high yielder - even at today's lows the dividend yield was 3%, which compares to the 3.6% I got when I bought in 2011. Nonetheless, that dividend is supported by a 5.4% free cash flow yield.

I hope that RB focuses on organic growth in future rather than Mead Johnson-style acquisitions. After that acquisition, the company's return on capital employed fell precipitously. It is easy to grow if you throw capital at a problem and accept a decreasing return on capital. If not for the goodwill impairment write downs for 2019, the ROCE would be around 13.6% which is up from the sub-10% trough but far off the mid 20%s we used to see from this company.

For me, since purchase in July 2011 it has given me a capital gain of 80.3% (7.6% CAGR) and dividends amounting to 40.3% of my book cost with the dividend growing 4.1% CAGR. (These figures are just for 'an' RB share and ignore the Indivior spin off.) Not great but not disastrous.

Best wishes

Mark.

idpickering
The full Lemon
Posts: 11276
Joined: November 4th, 2016, 5:04 pm
Has thanked: 2468 times
Been thanked: 5763 times

Re: Reckitt Benckiser Group PLC (RKT)

#304340

Postby idpickering » April 30th, 2020, 7:41 am

Highlights

· Exceptional efforts to increase capacity by RB's people, partners, suppliers and customers to meet strong consumer demand due to COVID-19

· Group LFL growth of +13.3%: led by strong demand for many of our hygiene and health products, and compared to a weaker quarter for Health in 2019; improving market share3 trends in both businesses

· Hygiene LFL growth of +12.8%: strong growth in most markets, with double digit growth in North America, Europe / ANZ, and Latin America

· Health LFL growth of +13.6%: strong demand for Dettol, OTC and Other Health in North America, Europe and Australia, partially offset by lower growth in Developing Markets and decline in IFCN in China reflecting retail restocking in 2019

· Strong demand in the first quarter for Dettol, Lysol, Mucinex, Nurofen and VMS as the business sustained supply despite challenging conditions in many markets

· e-Commerce 1 channel net revenues up over 50%, reflecting strong growth in both Hygiene and Health, particularly in March as consumers moved online during 'stay at home'

· Plans to Rejuvenate Sustainable Growth at RB underway with senior management team and new structure expected to be in place by 1 July 2020; some investments now phased to start later in the year; RB Fight for Access Fund has allocated over £40m to benefit communities consistent with the Company's Purpose

· 2020 performance now expected to be better than original expectations, although the outlook for the balance of 2020 remains uncertain, with significant COVID-19 challenges across our markets; fuller update on plans and guidance at the Half Year


https://www.investegate.co.uk/reckitt-b ... 00074021L/

ADrunkenMarcus
Lemon Quarter
Posts: 1584
Joined: November 5th, 2016, 11:16 am
Has thanked: 672 times
Been thanked: 479 times

Re: Reckitt Benckiser Group PLC (RKT)

#304347

Postby ADrunkenMarcus » April 30th, 2020, 7:52 am

Thanks Ian. A good update!

dealtn
Lemon Half
Posts: 6072
Joined: November 21st, 2016, 4:26 pm
Has thanked: 441 times
Been thanked: 2324 times

Re: Reckitt Benckiser Group PLC (RKT)

#304427

Postby dealtn » April 30th, 2020, 10:53 am

Bouleversee wrote:Is it yet known what is happening about RB's dividend?



The dividend was declared on 27th February.

This is a trading update so you wouldn't expect anything on the dividend to be mentioned in "normal times". The fact nothing is mentioned here must be taken as positive, and specifically in today's announcement, under the section "Financial Position" they confirm no material change to the financial position of the Group since the Annual Report was presented on April 6th.

The company AGM is scheduled for 12th May when the Dividend will be formally voted on. With no anticipated announcements between now and that date you can be confident if there was cause to amend the previously announced position, and amend the voting process, it would have happened today, if not before.

Bouleversee
Lemon Quarter
Posts: 4652
Joined: November 8th, 2016, 5:01 pm
Has thanked: 1195 times
Been thanked: 902 times

Re: Reckitt Benckiser Group PLC (RKT)

#304447

Postby Bouleversee » April 30th, 2020, 11:43 am

I should think we can count on it being paid. I see the s.p. is up 6.53% at the moment, against the market trend.

I don't know why Dod says he is glad he never held. RB is one of my biggest successes over a number of years.

ReformedCharacter
Lemon Quarter
Posts: 3120
Joined: November 4th, 2016, 11:12 am
Has thanked: 3590 times
Been thanked: 1509 times

Re: Reckitt Benckiser Group PLC (RKT)

#304451

Postby ReformedCharacter » April 30th, 2020, 11:57 am

Bouleversee wrote: RB is one of my biggest successes over a number of years.

Yes, pity I don't hold more :)

RC

ADrunkenMarcus
Lemon Quarter
Posts: 1584
Joined: November 5th, 2016, 11:16 am
Has thanked: 672 times
Been thanked: 479 times

Re: Reckitt Benckiser Group PLC (RKT)

#304464

Postby ADrunkenMarcus » April 30th, 2020, 12:33 pm

RB has basically doubled for me since 2011 with dividends on top and I’m enjoying a more than 5% dividend yield on cost.

Nice.

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Reckitt Benckiser Group PLC (RKT)

#304482

Postby Dod101 » April 30th, 2020, 1:14 pm

27 February 2020

ADrunkenMarcus wrote:For me, since purchase in July 2011 it has given me a capital gain of 80.3% (7.6% CAGR) and dividends amounting to 40.3% of my book cost with the dividend growing 4.1% CAGR. (These figures are just for 'an' RB share and ignore the Indivior spin off.) Not great but not disastrous.


Then from DM today

'RB has basically doubled for me since 2011 with dividends on top and I’m enjoying a more than 5% dividend yield on cost.

Nice.'

So it really depends on the context. Compared to the carnage around us today RB looks quite good but they had a very poor few years until now. New management is starting to sort things out, hopefully.

From the 2019 results statement - Reported operating loss of £1,954 million
- Impairment from MJN acquisition £5,037 million
- Dividend held for at least 2020.

Not actually very good is it? But at least they are paying a dividend.

Dod

Bouleversee
Lemon Quarter
Posts: 4652
Joined: November 8th, 2016, 5:01 pm
Has thanked: 1195 times
Been thanked: 902 times

Re: Reckitt Benckiser Group PLC (RKT)

#304494

Postby Bouleversee » April 30th, 2020, 1:33 pm

I agree they have stumbled somewhat in the last few years but you said "never" and if you look at the 10 or even 8 yr graph it is a rather different picture. I think they can be forgiven for the odd mistake and they seem to be picking up now. There are much worse places to have one's money.

ADrunkenMarcus
Lemon Quarter
Posts: 1584
Joined: November 5th, 2016, 11:16 am
Has thanked: 672 times
Been thanked: 479 times

Re: Reckitt Benckiser Group PLC (RKT)

#304496

Postby ADrunkenMarcus » April 30th, 2020, 1:38 pm

The Mead Johnson acquisition looks bad today and it trashed the balance sheet. They also cut back too much in investing in some areas IMHO.

However RB has handsomely beaten the FTSE100 over the long term and I do not think it’s permanently impaired in any way.


Return to “Company Share news (LSE Main Market)”

Who is online

Users browsing this forum: No registered users and 7 guests