Reckitt announces £1bn share buyback programme amid revenue growth
Consumer goods giant Reckitt today announced a £1bn share buyback programme after reporting a net like-for-like revenue growth of 3.4 per cent in the third quarter.
In a third quarter trading update today, Reckitt said Nutrition had seen a net revenue decline of -11.9 per cent – which it put down to a particularly challenging like for like comparator – but the hygiene division had grown 8.1 per cent and health 5.4 per cent.
As of 9 am Wednesday morning, Reckitt share prices were down 2.2 per cent.
A strategy update was also announced this morning — commencing a £1bn share buyback programme, which chief executive Kris Licht said is a “clear indication” of his confidence in Reckitt.
“With our strong growth and sector leading earnings model, a clear set of priorities to sharpen and improve our business, significant free cashflow generation, and a healthy balance sheet, we are now well positioned to deliver sustainable and leading total shareholder returns,” Licht said.
The strategy will continue to include innovation, R&D, and supply chain investments.
“We are firmly on track to deliver our full year targets, despite some tough prior year comparatives that we continue to face in our US Nutrition business and across our OTC portfolio in the fourth quarter.”