The following is a summary of the Reckitt Benckiser Group Plc (RBGPF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Reckitt Benckiser witnessed a progressive 2023 with net revenue growth surpassing expectations, despite a small setback due to a discrepancy in the Middle East markets.
Gross margins improved to 60%, helping to underpin increased brand and innovation investments.
A year-end adjusted operating profit of £3.373 billion was reported, despite a minor decrease in adjusted diluted earnings per share (down by 5.4%).
The company saw an 11% highest on record surge in free cash flows, achieving £2.258 billion.
The company returned a resonating £1.5 billion to shareholders through dividends and share buybacks.
Business Progress:
Reckitt Benckiser's health and hygiene divisions delivered mid-single-digit growth, a trend it expects to sustain through 2024.
A fixed cost optimization program was launched and is anticipated to support future growth.
Compliance issues in two Middle Eastern markets and a voluntary product recall in the Nutrition business were immediately addressed.
The firm plans to continue investing in product quality, branding, and executing its strategies consistently.
The company emphasized their commitment to dividend growth and are expected to continue their share buyback actions.
Growth plans for 2024 include high-to-mid single-digit decline in Nutrition with a return to growth by year-end, an increase in capex range to 3-3.5%, and like-for-like net revenue growth of 2-4%.
A strong free cash flow is expected to be delivered in 2024, allowing for additional returns to shareholders.
More details: RECKITT BENCKISER GROUP PLC IR
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