Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB)'s half-year update on Wednesday (24 July) will have its infant formula litigation as the dominant factor, analysts at Barclays believe.
One of the investment problems is that there is little visibility on the timing of any resolution, says the bank, stating: “We think drawing a line under the infant formula litigation (by settlement, asset sale, or spin-off) would be the most helpful catalyst for Reckitt's share price.”
Otherwise, expect an update on progress against the strategic objectives given this time last year but no meaningful change in strategic priorities.
The costs of the disruption in its warehouse in Mount Vernon are noteworthy, though any earnings impact should be covered by insurance, adds the bank.
Other potential red flags include destocking and dishwashing trends, where Reckitt is potentially losing share to own-label competitors.