Net revenue

Reckitt Benckiser Full Year Adj. Lower operating profit; Net revenue up 3.5% on an LFL basis

(RTTNews) – Reckitt Benckiser Group PLC (RBGPF.PK, RB.L) reported adjusted operating profit for the full year, including IFCN China, of 2.88 billion pounds from 3.30 billion pounds the previous year. Adjusted operating margin, including IFCN China, was 21.7% versus 23.6%. Total adjusted earnings per share were 288.5 pence from 327.0 pence. The company said the decline in 2021 was primarily due to lower adjusted operating profit and the negative impact of currency exchange rates.

Excluding IFCN China, adjusted operating profit was £2.94 billion versus £3.22 billion a year earlier. The adjusted operating margin was 22.9% versus 24.5%.

The loss before income tax was £260 million compared to a profit of £1.87 billion the previous year. The loss per share from continuing operations was 8.8 pence compared to a profit of 159.3 pence.

For the 12 months ended December 31, 2021, Group net sales were £13.23 billion, up 3.5% on an LFL basis, reflecting volume growth of 0. 6% and price/mix improvements of 2.9%. The Group specifies that this performance is driven by strong growth in Hygiene, particularly in North America. Total net sales at actual exchange rates decreased by 5.4% over the period. Excluding IFCN China, net revenue was £12.85 billion, down 2.1% at actual exchange rates.

For 2022, the Group is targeting LFL net revenue growth of between 1% and 4%. The Group is targeting growth in its adjusted operating margin in 2022, from 22.9% base.

Reckitt Benckiser expects to emerge from 2022 with single-digit LFL net revenue growth and progress toward the mid-20s mid-term adjusted operating margin target by the mid-20s.

The Board has recommended a final 2021 dividend of 101.6 pence. The dividend will be paid on June 9, 2022 to shareholders of record on the record date of April 29, 2022. The proposed annual dividend is 174.6 pence.

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