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Eps 178, +25%, fcf +8.6%, outlook very positive. Could do with a bump in the divi but otherwise all very rosy.
Another premium products company (Unilever) issued their H1 results today which the market appears to approve of. Hopefully RKT’s update tomorrow goes down well.
RKT is circa 5% of my P/F.
I view it as one of my anchors whose products will always be wanted.
Always happy to top up on silly red days but just wish the divi was a little higher!
looking at opinions of both GS & UBS, both different by a big margin, but is that cause GS is American and the US being hit by baby formulae shortage more than Europe?
https://m.marketscreener.com/quote/stock/RECKITT-BENCKISER-GROUP-P-9590106/
Let it continue!! This and Pharmas are good places to stash during downturns. i bought 200 2weeks ago.
Whats everyone’s weighting with this stock? At the minute i stand at around 5%
Weathering the market storm pretty well, one of my only positive FTSE shares.
Strong results and good prospects going forward. Strong BUY at this price.
Strong brand names, quality products and good margins are all playing their part in a good trading update and are helping the company navigate the choppy waters out there.
On an otherwise largely red day for my portfolio.
Good couple of days, that's for sure. Barclays sound bullish... potential 50% upside from here...
"Reckitt Benckiser moved to the top of the risers after a bullish update from Barclays.
Over the counter sales this quarter should be strong it said, driven by a strong flu season and easy comparison to a year ago.
Nielsen market data suggests high double-digit, or even triple-digit, growth in cold and flu treatment Mucinex.
Added to consumers switching away from rival Abbott, this could potentially add 4% to group organic sales and 6% to EPS this year.
Nielsen data suggests strong growth for the quarter, but this may include an element of retailer destocking and consumer pantry-loading.
Reckitt’s product mix and operational gearing meanwhile should also help offset headwinds from rising oil prices, even with low visibility.
The share price target is 9,100p against 6,032p, up 3.4% today."
Nice SP rise back to 60xx with a lot more to go. With inflation high big global companies like RKT and ULVR have superior buying power. They also have pricing power at the supermarkets, ability to bid for aisle end visibility and BOGOF offers. Brands will always do well over supermarket own rubbish - even better when inflation is high.
Oh I don't know. Would you opt for own brand condoms over durex? Calgo for washing machines, Vanish, Brasso, KY jelly, the list goes on and on. Some of those brands are synonymous with their function, even in down times most of RBs key brands would be sustained.
pickedpeck - cost of raw materials/commodities are going up, and there is always the risk that consumers opt for own brands/stop buying premium when prices rise and people start to feel the pinch.
Does inflation adversely affect RKT? Surely sales volume and gross margin in £ increases rather than gets squeezed or am I being naive?
UPDATE 1-Reckitt quarterly sales beat estimates, boosted by hygiene products
and share price is responding up 5%
In corporate news, Reckitt Benckiser suffered an £804m annual operating loss as the consumer goods company booked a loss on the sale of its Chinese infant formula business.
The group swung to the loss under IFRS accounting rules for the year to the end of December from a profit of £2.16bn a year earlier. Net revenue fell 5.8% to £3.36bn.
Excluding the sale of the IFCN business, operating profit fell 8.5%, or 2.6% at constant currency, to £2.94bn. Like-for-like net revenue rose 3.3% and Reckitt said it was targeting growth of 1-4% on that basis in 2022. The company left its annual dividend unchanged at 174.6p a share.
One of the safest stocks around to keep in your portfolio, IMO.
Like for like sales up 3.5%, "stacked" over 2 years up over 17%. The self-inflicted wound of IFCN China finally lanced giving an exceptional IFRS operating loss of £804m (2020: £2,160m profit). Divi maintained.
Expect the headlines will concentrate on the loss and inflationary dangers, but I remain a cautiously optimistic long term (since 1984) holder.
More likely Unilever make a bid for reckitt
Previously at Tesco's, M&S, WH Smith and doubtless other underperforming High Street retailers.
Meanwhile I assume today's pleasant rise is largely due to a flight from Unilever?
It would seem “Premium” products could well be a decent hedge against inflation if margins can be at least maintained. RKT sits quietly in my p/f but its one I’m happy to hold.
Not a very active board, but I am certainly looking to buy some of this once the share price falls a bit again. Definitely a good one to have over winter imo.
" Nine of our ten largest brands are up double-digits on a two-year basis."
That is really very very nice
To see them pull that one out of the hat.
Why is the price down today? Any idea?