Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) launched a £1 billion share buyback as new chief executive Kris Licht unveiled his hopes for the business, saying it had “room to sharpen and improve”.
The consumer goods firm, which makes Harpic, Dettol and Clearasil, reported like-for-like net revenue growth of 3.4% to £3.6 billion in the third quarter, led by strong broad-based growth of 6.7% across Hygiene and Health combined.
Reported net revenue declined 3.6% with like-for-like growth offset by forex headwinds of 6.8% and a net M&A impact of 0.2%.
Licht said the firm is “firmly on track to deliver our full year targets, despite some tough prior year comparatives that we continue to face in our US Nutrition business and across our OTC portfolio in the fourth quarter".
In a separate statement, Licht announced a strategy update which included plans for “an enhanced shareholder returns programme” beginning today with the start of a £1 billion share buyback.
He said Reckitt is a “strong, competitive, resilient business” but does “however, have room to sharpen and improve”.
He said the firm is well placed to deliver sustainable mid-single digit like-for-like net revenue growth over the medium term and sees “a clear runway for sustainable growth, with superior gross margins".
Reckitt will “extend our productivity programme to focus on fixed costs to fuel both growth and earnings”.
The company said it is well positioned to grow adjusted operating profit ahead of net revenue in the medium term.