Dettol and Nurofen owner Reckitt to sell divisions as it slims down
Dettol, Lysol, Durex, and Nurofen owner Reckitt has delivered a mixed financial performance for 2024, with modest like-for-like revenue growth and increased profitability but a decline in reported net revenue due to foreign exchange impacts.
Like-for-like net revenue rose 1.4 per cent, driven by gains in Hygiene and Health, while Nutrition declined.
Adjusted operating profit at constant exchange rates increased by 8.6 per cent, with an adjusted operating profit margin of 24.5 per cent.
However, IFRS-reported net revenue dropped three per cent to £14.2bn, and operating profit fell 4.2 per cent due to impairment charges and restructuring costs.
The company said it had returned £2.7bn to shareholders, up 75 per cent from the previous year, as part of its strategy to reshape itself into a leaner, high-margin consumer health and hygiene business. Free cash flow stood at £2.2bn, slightly lower than the previous year.
Alongside the results, Reckitt announced a strategic shift to a new operating model starting in 2025, with three segments: Core Reckitt, Essential Home, and Mead Johnson Nutrition.
The company plans to exit Essential Home by the end of 2025 and is exploring options for Mead Johnson Nutrition.
Kris Licht, chief executive officer said: “We are reshaping Reckitt into a more efficient, world-class consumer health and hygiene company, focused on a portfolio of high-growth, high-margin Powerbrands,” said “Strengthened execution in key markets led to market share improvements in Health and Hygiene, with our performance further supported by impactful innovation platforms, increased investment in our brands and R&D, and initial savings from our Fuel for Growth programme.”
“Our Fuel for Growth programme is expected to help drive adjusted operating profit ahead of net revenue growth,” Licht added.