Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors
Markets

Reckitt Benckiser fighting fires on many fronts

Day ahead: Flag waving unlikely as under pressure Reckitt Benckiser reveals first quarter sales
picture of Vanish packet
Sales growh is under pressure at Reckitt

Reckitt Benckiser PLC (LON:RB.) first quarter numbers on Friday will still bear the scars of the scandal in South Korea that saw over 100 people die from a toxic humidifier sanitiser.

But that isn’t the Cillit Bang and Dettol group’s only concern.

Sales generally have been below par and its recent acquisition Mead Johnson has added to the market’s unease due to its hefty price tag.  Mead will report standalone results this time around

According to Berenberg, the market has already priced in that RB will start 2017 slowly.

“Reckitt is still suffering from loss of sales in South Korea and the failed Scholl innovation “

But Berenberg remains a fan and sees a return to 5% top-line growth later in the year to make 4% for the year overall.

Barclays is also erring on the cautious side in this update.

A combination of the de-listing in South Korea, failed Scholl/Amope innovation and disruption in India as well as Brazil, Russia and Turkey add up to a growth suppressant, believes the broker.

Even so expect like-for-like growth of 3% and moderate margin expansion with headline sales growth of 0.9% to £2.62bn.

‘Equalweight’ is the broker’s view and 7,230p the price target.

 

Friday 21 April

Interims: Schlumberger(LON:SCL) 

AGM/EGM: Symphony International Holdings Ltd (LON:SIHL)

Trading statement: Reckitt Benckiser (LON:RB.)


No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use