Reckitt Benckiser Full Year Adj. Operating Profit Declines; Net Revenue Up 3.5% On LFL Basis

Reckitt Benckiser Group PLC (RBGPF.PK,RB.L) reported full year adjusted operating profit, including IFCN China, of 2.88 billion pounds compared to 3.30 billion pounds, prior year. Adjusted operating margin, including IFCN China, was 21.7% compared to 23.6%. Total adjusted earnings per share was 288.5 pence compared to 327.0 pence. The company said the decrease in 2021 was principally due to lower adjusted operating profit and the adverse impact of foreign exchange.

Excluding IFCN China, adjusted operating profit was 2.94 billion pounds compared to 3.22 billion pounds, prior year. Adjusted operating margin was 22.9% compared to 24.5%.

Loss before income tax was 260 million pounds compared to profit of 1.87 billion pounds, prior year. Loss per share from continuing operations was 8.8 pence compared to profit of 159.3 pence.

For the 12 months ended 31 December 2021, Group net revenue was 13.23 billion pounds, up 3.5% on a LFL basis, reflecting volume growth of 0.6% and price/mix improvements of 2.9%. The Group said the performance was driven by strong growth in Hygiene, particularly in North America. Total net revenue at actual exchange rates was down 5.4%, for the period. Excluding IFCN China, net revenue was 12.85 billion pounds, down 2.1% at actual exchange rates.

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

Reckitt Benckiser expects to exit 2022 with mid-single-digit LFL net revenue growth and progress towards medium-term adjusted operating margin target in the mid-20s by the mid-20s.

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

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