Reckitt Benckiser Group Plc (RB) Reveals 300 Million Pound Latin America Tie-In

Page 1 of 2

LONDON — Shares in Reckitt Benckiser Group Plc (LON:RB) lifted this morning following the group’s positive fourth-quarter and full-year earnings release, with management declaring that its strategy is “well on track.”

The earnings release also reported a three-year collaboration agreement with U.S. biopharmaceutical company Bristol Myers Squibb Co. (NYSE:BMY), for a number of market-leading over-the-counter consumer health-care brands in Latin America, including Brazil and Mexico.

The arrangement includes personnel, supply contracts, and an option to acquire legal title to the related intellectual property at the end of the collaboration period for a multiple of earnings.

Bristol Myers Squibb Co. (NYSE:BMY)Reckitt saw net revenue for Q4 hit 2.48 billion pounds, up 2% on actual exchange rates and 6% on constant rates. The full-year figure was 9.58 billion pounds, up 1% actual and 4% constant.

Like-for-like growth increased 7% in the fourth quarter, and 5% across the full year — well ahead of its market growth, driven by emerging-market areas and Europe/North America (ENA). Additionally, the company’s sales were boosted by “higher incidences of cold and flu.”

Health and hygiene led Reckitt’s growth, with a broad range of products, including Durex, Gaviscon, Strepsils, Dettol, Lysol, Harpic, and Finish. Chief Executive Officer Rakesh Kapoor commented, “We are laying the foundations for RB to succeed in a world where health and hygiene play an increasingly important role in terms of both economic and social development.”

Kapoor continued:

We enhanced our focus on our 16 power markets, many of which are in the emerging-market areas that now represent 44% of our core net revenue. I am very pleased that our 2012 achievements demonstrate the strength of this strategy and its ability to create sustainable value for all of our stakeholders.

While much has yet to be done and markets remain challenging, we approach 2013 with the confidence that we have the right strategic focus, the right organization and culture, and with the right innovation platforms. We are particularly excited by our entry into the vitamins, minerals, and supplements market with the acquisition of Schiff. We are supporting our brands with more and better-quality brand equity investment to deliver further growth in an increasingly competitive consumer environment.

We remain committed to our goal of net revenue growth on average +200bps per annum above our market growth, and moderate operating margin expansion (ex RBP). For 2013, we are targeting net revenue growth of +5-6% including acquisitions and disposals announced to date. Given the early achievement of cost savings in 2012, we expect to maintain operating margins in 2013. These targets exclude RBP.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!