Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) shares climbed over 10% on Friday morning after the consumer group was cleared in the latest trial on disease risks related to baby formula. A court in Missouri on Thursday rejected claims that formula made by Reckitts' Mead Johnson division, alongside Abbott, caused inflammation of the bowel, or necrotizing enterocolitis, which can require invasive surgery.
Shares in British consumer goods company Reckitt Benckiser jumped over 10% on Friday after the company, along with U.S.-based Abbott Labs, was cleared of liability in a preterm formula case.
Investors interested in Soap and Cleaning Materials stocks are likely familiar with Reckitt Benckiser Group PLC (RBGLY) and Clorox (CLX). But which of these two stocks offers value investors a better bang for their buck right now?
Shares in Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) rose almost 4% to a six-month high after the Cilit Bang, Nurofen and Durex maker reported a smaller fall in sales than investors feared. Third-quarter numbers showed group organic sales down 0.5%, beating the average City analyst forecast for a 1.7% decline.
Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) has said sales fell over the third quarter as revenue from its nutrition wing slumped. Like for like revenue declined by 0.5% to £3,46 billion during the quarter, the consumer goods firm said, or by 4.0% on an international reporting standards basis.
Reckitt reported a smaller than expected fall in third-quarter underlying sales on Wednesday, helped by its health business, which makes Nurofen painkillers and Strepsils lozenges.
Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) will offer up third-quarter results next Wednesday, 23 October reflecting what analysts believe will have seen a drop in sales. Barclays analysts forecast organic sales growth to have fallen by 1.2% over the quarter as weaker prices offset volume growth.
Investors looking for stocks in the Soap and Cleaning Materials sector might want to consider either Reckitt Benckiser Group PLC (RBGLY) or Clorox (CLX). But which of these two stocks is more attractive to value investors?
Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) could return up to £12.5 billion to shareholders, about 40% of its market value, as part of a major strategic overhaul, according to Barclays. The company plans to shift from a category-first model to a geography-first approach, with asset sales playing a key role.
Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) is facing multiple challenges ahead of its third-quarter results, with Jefferies forecasting a -1% drop in like-for-like sales. Key reasons for the limp forecast include weaker scanner data from the US and the impact of a tornado on the company's nutrition segment, which is expected to be heavily weighted in the third quarter.
Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) is in talks with interested parties to dispose of its £6 billion homecare portfolio, which includes household brands Air Wick, Mortein, Calgon and Cillit Bang, Bloomberg has reported. The reported discussions align with an announcement from the FTSE 100-listed FMCG giant in July that plans to get rid of certain non-core products from its portfolio.
Reckitt Benckiser has initiated early discussions with potential suitors for a sale of its homecare assets, which could be worth over 6 billion pounds ($7.89 billion), Bloomberg News reported on Tuesday.