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(Alliance News) - Reckitt Benckiser Group PLC on Wednesday announced the start to a GBP1 billion buyback programme and reported quarterly sales growth.
Reckitt is a Slough, England-based consumer goods firm which produces health, hygiene and nutrition products. Some of its most common brands are Dettol, Nurofen and Vanish.
In the third quarter of 2023, Reckitt said like-for-like sales ticked up 3.4% to GBP2.60 billion. This was driven by 8.1% and 5.4% growth in its Hygiene and Health arms respectively, and was offset by a 12% fall in its Nutrition division.
On a total basis, sales fell 3.6% and group volumes were down 4.1%.
In the year-to-date, like-for-like revenue climbed 5.1% to GBP11.04 billion.
Looking ahead, Reckitt said it will continue to target group LFL net revenue growth of 3% to 5% in 2023, and continues to expect adjusted operating margins to be slightly above 2022 levels of around 24%.
Commenting on the results, Chief Executive Officer Kris Licht said: "We do, however, have room to sharpen and improve. We will continue to invest in the superiority of our products, work to improve the consistency of our in-market execution and optimise our cost base. At the same time, we will constantly sharpen our portfolio in line with our clear principles for portfolio value creation."
As a result, Reckitt on Wednesday also said it is beginning its GBP1 billion share buyback programme, which will commence imminently and last over the next 12 months.
"With our strong growth and sector leading earnings model, a clear set of priorities to sharpen and improve our business, significant free cashflow generation, and a healthy balance sheet, we are now well positioned to deliver sustainable and leading total shareholder returns," said Licht.
Shares in Reckitt fell 3.1% to 5,734.00 each in London on Wednesday morning.
By Sabrina Penty, Alliance News reporter
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