Business
RECKITT STRATEGY UPDATE
RECKITT STRATEGY UPDATE.
About this update from Reckitt Benckiser Group Plc
[{"type":"text","content":"\n\n24 July 2024\n \nRECKITT TO SHARPEN ITS PORTFOLIO & SIMPLIFY ORGANISATION\nFOR ACCELERATED GROWTH & VALUE CREATION\n \nFOCUS ON CORE HIGH-GROWTH, HIGH-MARGIN POWERBRANDS\nASSESS ALL OPTIONS FOR 'ESSENTIAL HOME' PORTFOLIO & MEAD JOHNSON NUTRITION\nMOVE TO A SIMPLER, MORE EFFECTIVE ORGANISATION1\n \nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\nLondon UK, 24 July 2024: Reckitt Benckiser Group Plc ('Reckitt plc') announces actions to reshape the company as a world-class consumer health and hygiene organisation, with one of the strongest growth and margin profiles among its peer group. This involves significant sharpening of its brand portfolio and a move to a simpler, more effective organisation1 to maximise long-term value for shareholders.\nReckitt plc will focus on a portfolio of market-leading Powerbrands, in line with the criteria set out in its October 2023 strategy update. These high-growth, high-margin Powerbrands are beloved by consumers and hold leading market shares in categories with significant headroom for long-term growth. These actions are the result of a thorough review conducted over the last nine months. This sharpened portfolio creates the opportunity to move to a simpler, faster and more efficient organisation.\nReckitt plc will seek to exit its portfolio of leading home care brands that are no longer core ('Essential Home') including Air Wick, Mortein, Calgon and Cillit Bang, with FY2023 net revenue of £1.9bn, by the end of 2025 and will consider all options to maximise shareholder value. \nThe Mead Johnson Nutrition business, with its market-leading brands of Enfamil and Nutramigen, is now non-core and Reckitt will consider all strategic options to maximise shareholder value.\nReckitt plc's allocation framework remains constant, and these actions allow the company to focus capital against brands that offer the best long-term opportunity for growth. Reckitt plc will continue to pay a progressive dividend and return surplus cash to shareholders, including excess proceeds from future transactions.\nAll proposals are subject to relevant employee representative and/or works council information and consultation, where applicable.\nA sharper, simpler Reckitt\nThe core Reckitt portfolio will be a uniquely attractive consumer health and hygiene business, with premium, h...