Reckitt Benckiser Group PLC faced a tough review from Barclays analysts ahead of its full-year results on Thursday, 6 March, as the bank flagged “execution risks”.
Bumping the consumer goods firm from an ‘overweight’ to ‘equal weight’ rating in February, Barclays cautioned over plans to transform its portfolio.
“While strategically necessary,” these would “likely leave earnings per share flat until 2027,” analysts said, before the impact of any execution-related issues.
Reckitt last year laid out plans to organise operations into three separate divisions and double down on focus of its core “powerbrands,” such as Dettol, Nurofen and Durex.
Options for its non-core essential home and nutrition portfolios were set to be considered in the meantime.
Focus in the update is set to revolve around such plans as a result, with the company last time out noting the reorganisation into Reckitt, Essential Home and Mead Johnson Nutrition would be completed by January.
Full-year life for like revenue growth of 1% to 3% was expected for the year, it added in third-quarter figures, as adjusted operating profit was seen growing faster.