Reckitt Benckiser Group plc
LSE-RKT
Company Overview
Reckitt Benckiser Group plc manufactures and sells health, hygiene, and nutrition products in the United Kingdom, the United States, China, India, and internationally. The company offers acne treatment creams, facial washes, and cleansing pads; disinfection, hygiene, and first aid products; condoms, sex toys, and lubricants; heartburn and indigestion solutions; and cough and chest congestion, multi-symptom, and sinus remedies for adults and children under the Clearasil, Dettol, Durex, Gaviscon, and Mucinex brands. It also provides analgesics; sore throat medications; and hair removal products under the Nurofen, Strepsils, and Veet brands. In addition, the company offers fragrances and devices; water softeners; home cleaning products; dish washes; toilet cleaners; disinfectants; sprays, baits, and plug-ins for pest control; stain removals; fabric washing; and other hygiene products under the Air Wick, Calgon, Cillit Bang, Finish, Harpic, Lysol, Mortein, Vanish, and Woolite brands, as well as analgesics, adult nutrition products, iron-fortified hypoallergenic baby formula, products for joint issues, and infant and toddler nutrition products, as well as vitamins, minerals, and supplements under the Biofreeze, Airborne, Mead Johnson, Move Free, Enfamil, and Nutramigen brands. Further, it provides probiotics, sore throat pain relief products, Omega products, brain health support products, cleaning and carpet cleaning products, septic tank system treatment products, cough syrups, plant-based laundry products, probiotics, and lubricants under the Digestive Advantage, Cepacol, MegaRed, Neuriva, Easy-Off, RID-X, Delsym, Botanical Origin, Bodi-Ome, and K-Y brands. The company was founded in 1819 and is headquartered in Slough, the United Kingdom.
Name
Reckitt Benckiser Group plc
CEO
Kristoffer Loe Licht
Website
www.reckitt.com
Sector
Household Products
Year Founded
1819
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Bulls Say
The majority of Reckitt’s portfolio is well positioned in categories with long-term structural growth potential.
Reckitt's low 20s operating margin is significantly higher than the high teens peer average given its sizable consumer health business and the focus on attractive home care categories, with a lower emphasis on the commoditized laundry detergent segment.
The additional investment in the business financed by the GBP 2 billion productivity program should translate into accelerated growth through penetration gains and increased e-commerce contributions to net revenue.
Bears Say
The infant nutrition segment will continue to dampen Reckitt’s growth potential given depressed birthrates in the US.
The premium price position of Reckitt's brands could affect competitiveness in some discretionary categories such as air care as many consumers struggle with cost of living pressure.
The ongoing premature infant formula litigation has increased the uncertainty around the future of the nutrition business and is detracting management focus from the stronger core of the business across the health and hygiene segments.