Reckitt Benckiser Sales Miss Expectations, Profit Drops
By Michael Susin
Reckitt Benckiser profit fell on one-off impairments as sales missed market expectations, but the company raised its dividend payout.
The consumer-goods company--which houses Dettol, Harpic and Durex among its brands--on Wednesday reported pretax profit for 2023 of 2.40 billion pounds ($3.04 billion), compared with GBP3.07 billion in the year-earlier period.
Adjusted operating profit--which strips out exceptional and other one-off items--was GBP3.37 billion compared with GBP3.44 billion a year ago.
The company said it has booked a goodwill impairment of GBP810 million from its Infant Formula and Child Nutrition, reflecting higher interest rates and changes in the regulatory environment.
Revenue came in at GBP14.61 billion compared with GBP14.45 billion the prior year. However, this was below the GBP14.75 billion estimated by 15 brokers polled by FactSet.
Net revenue growth on a like-for-like basis was 3.5%, in line with the company's guidance range of 3% to 5%. The increase was driven by growth of 5.2% across its hygiene business.
For 2024, Reckitt expects mid-single-digit growth in health and hygiene divisions, driven by a more balanced contribution from price, mix and volume. Nutrition is expected to return to growth late in the year.
"We will advance our fixed cost optimization program, and we will further increase cash returns to shareholders, aiming to double what we returned in 2019," it said.
The board declared an interim dividend of 192.5 pence a share, compared with 183.3 pence declared the previous year.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
February 28, 2024 02:48 ET (07:48 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
What Does Nvidia’s Stock Split Mean for Investors?
-
5 Undervalued Stocks to Buy as Their Stories Play Out
-
Markets Brief: Return of the Meme Stocks
-
What’s Happening In the Markets This Week
-
It’s Been a Terrible Time for Bonds. Here’s Why You Should Own Them
-
Which AI Stocks Are Turning Hype Into Revenue?
-
Best- and Worst-Performing Stocks of May 2024
-
3 Stocks to Buy and 3 Stocks to Sell in June
-
The 10 Best Dividend Stocks
-
The Most Attractive Investment Opportunities in Oil & Gas
-
Apple: Generative AI Strategy Should Drive Sales and Upgrades
-
2 Undervalued Stocks That Just Raised Dividends
-
2 Popular Stocks That Top Managers Are Selling
-
The Best REITs to Buy
-
Nio Earnings: Revenue and Loss Largely In Line, but Vehicle Margin Missed Amid Price Competition
-
The Best Biotech Stocks to Buy