Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) has upped its dividend after a drop in profit last year on efforts to revamp the consumer goods business.
Operating profit fell 4.2% to £2.43 billion in the year to December 31, as revenue slipped 3.0% to £14.17 billion on an international financial reporting standards basis.
A full-year dividend of 202.1p per share was declared, marking a 5.0% increase, despite the drop, which Reckitt attributed to higher impairment and restructuring costs.
Reckitt firmed up a structural shift to focus on its core Hygiene, Health and Nutrition divisions and said plans to “exit” Essential Home by late 2025 were on track.
Options were being evaluated for its Mead Johnson Nutrition business, Reckitt added in a statement.
Within the core divisions, revenue from Hygiene was up 0.1%, but fell 3.0% and 10.9% in Health and Nutrition respectively, as gross profit margin climbed 70 basis points to 60.7%.
"We are reshaping Reckitt into a more efficient, world-class consumer health and hygiene company, focused on a portfolio of high-growth, high-margin powerbrands,” chief executive Kris Licht said.
Guidance was laid out for like-for-like net revenue growth of 3% to 4% in 2025 across the core business.