EU CONSUMER STAPLES: Reckitt: 3Q Results

(RKTLN; A3/A-/NR) 

Results fine/firm driven by strong growth in core EM markets including 'broad-based double digit growth across categories' in China (country is 10% of Core Reckitt).

• Group £3.6b, +7% LFL (net of fx +4.5%). YTD +3.3% (net -0.3%).
  • Core Reckitt £2.6b, +6.7%
    • EM £1.1b +16%, Europe £0.9b +0.8%, NA £0.7b +1.3%
  • Divested Essential Home (will hold 30%) £0.5b, -4.9%
    • Exp. to close by end of this year
  • Tagged for sale and lawsuit tied Mead Johnson £0.5b, +22%
  • Is rolling July 2024 Tornado impact (3Q24 revenue -17%)

FY guide largely unch:

• Group +3-4% LFL growth
  • Core Reckitt > +4% and Mead Johnson low to mid single digit up
  • Essential Home MSD decline (vs. LSD prev.)
• adj. EBIT margin to expand (24.5% LY)