Reckitt: share rises as strategic review launched
(CercleFinance.com) - Reckitt Benckiser said on Wednesday that it had decided to study various options as part of a strategic review, a surprise announcement that enabled it to post one of the biggest rises in the FTSE 100 index on the London Stock Exchange.
The British FMCG group says it wants to focus on a portfolio of 'superbrands' generating strong sales growth and high profit margins.
This includes Strepsils, Gaviscon, Nurofen, Lysol, Harpic, Finish, Vanish, Durex and Veet.
According to Reckitt, this group has achieved average annual sales growth of 7% over the last six years, with a gross margin of 61%.
Conversely, Reckitt plans to divest brands it no longer considers strategic in nature, such as Air Wick, Calgon and Cillit Bang.
More surprisingly, the Mead Johnson Nutrition baby food division, which includes the Enfamil and Nutramigen brands, is also now considered a 'non-strategic' asset, meaning that Reckitt will consider various options to maximize shareholder value.
This announcement overshadows half-year results which were broadly in line with expectations, and an expected warning following news of production capacity affected by a storm in the US.
The share price rose by over 3% in the wake of these announcements, making it the third biggest gainer on the FTSE 100 index.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The British FMCG group says it wants to focus on a portfolio of 'superbrands' generating strong sales growth and high profit margins.
This includes Strepsils, Gaviscon, Nurofen, Lysol, Harpic, Finish, Vanish, Durex and Veet.
According to Reckitt, this group has achieved average annual sales growth of 7% over the last six years, with a gross margin of 61%.
Conversely, Reckitt plans to divest brands it no longer considers strategic in nature, such as Air Wick, Calgon and Cillit Bang.
More surprisingly, the Mead Johnson Nutrition baby food division, which includes the Enfamil and Nutramigen brands, is also now considered a 'non-strategic' asset, meaning that Reckitt will consider various options to maximize shareholder value.
This announcement overshadows half-year results which were broadly in line with expectations, and an expected warning following news of production capacity affected by a storm in the US.
The share price rose by over 3% in the wake of these announcements, making it the third biggest gainer on the FTSE 100 index.
Copyright (c) 2024 CercleFinance.com. All rights reserved.