Good morning, everyone, and welcome to Reckitt's Full Year 2022 Results Presentation. We have a very strong productivity program coming in '23, and it is going to find us the increase in BEI, to be honest with you. Moving to OTC. But to summarize, we had a very strong performance in '22, and we are transitioned from transformation to delivery. The companys purpose - to protect heal and nurture in the relentless pursuit of a cleaner and healthier world - is, and remains, foundational to the future direction of the company; as do its environmental, societal and governance commitments. Reckitt Benckiser Group plc (OTCPK:RBGPF) Q4 2022 Results Conference Call March 1, 2023 8:00 AM ET, Nicandro Durante - Chief Executive Officer, Volker Kuhn - Chief Transformation Officer, Kris Licht - President of Health business and Chief Customer Officer, Pat Sly - President of Nutrition Business. Due to the shortage of available formula, the government allowed parents to purchase formula for manufacturers who did not hold the WIC contract in that state. So all in all, that's something that really gives us more confidence in our future as we're accelerating our innovation pipeline. The remainder of the portfolio grew in the year 5.1%. RANK 100000. We are being recognized externally as a top employer in many markets. If you look at this year's EPS, it's only marginally ahead of 2018. We have always operated in categories with a significant runway for long-term growth with trusted market-leading brands. Since then, we have introduced different tiers of premium-priced thermoformed tablets. Because, again, if you're keeping some of the top line, I'd expect you to keep some of the margin. We have strong, trusted, market-leading brands across the categories we compete in. But we do see that COVID is becoming endemic. Registered office at 103 - 105 Bath Road, Slough, Berkshire, SL1 3UH, Registered in England & Wales, No 6270876, Copyright Reckitt Benckiser Group PLC. Nicandro Durante - Chief Executive Officer We wish him and his family all the very best as he fulfils his desire to return to the United States. Neither Narasimhan nor Durante responded to requests for comment via their LinkedIn accounts. Reckitt Benckiser Chief Executive Laxman Narasimhan will step down at the end of September after three years in the role, the company said on Thursday, and will be replaced by insider and former BAT boss Nicandro Durante. There are no buyout awards or sign on bonuses for Nicandro. And then second question is on retailer inventories. Actually, we had a really big Q4 in '21 as well, as we talked about. We are the global market leader. Thank you very much for coming over. Pros. All of this is our biggest category. And we expect clearly our volume trend to improve post quarter one. And I think that if we hadn't done that, I think that during the last three years, it would have been impossible to manage the business, mainly in terms of supply chain capabilities that we created and things like that. Hygiene net revenue was 6.0 billion for the year, and like-for-like net revenue was down 3.1%. 2020 All rights reserved, Reckitts response to the Infant formula shortage in the US, Sustainable livelihoods and working conditions. We have more work to do here, but I'm very encouraged by the progress that we are making. And as long as we deliver, and we will, better products and packaging solutions for the consumer that get the job done better as well as fueling the brands with, again, premiumized innovation as well as driving penetration of the category, the whole pie is growing. Popular. Is the political environment back where you can take price increases now with the consumer? The single total figure of remuneration (excluding buyout arrangements) remains unchanged at 5,366,489. 2020 saw a massive working capital inflow as we went through the pandemic. Following publication of PepsiCo's proxy report on 24 March, the final calculation of vesting was completed. They showed great agility by significantly increasing the volume of products we have been able to ship to our customers. Specifically, built and led a 3 years, 1.3bn productivity programme, announced by Reckitt's CEO in February 2020, after having successfully led the creation of two autonomous business units and the necessary process and system infrastructure. Just on the margin ex -- the underlying margin ex the Nutrition, you said that that's sort of flat to slightly up. One, he is the group chief financial officer at Jio Platforms, the digital services arm of Reliance . All the other divisions called out industry-leading margins. Our Nutrition business is a 2.5 billion business based primarily in five markets where we have strong market shares of greater than 20%, established infrastructure, and leading go-to-market capabilities. In 2022, we delivered a strong performance of nearly 15% like-for-like growth. But we'll keep an element of that. Distributed by Public, unedited and . Adjusted operating profit of 1.6 billion was up 24.3% on a constant foreign exchange basis, and margins of 27.5% were up 290 basis points, again reflecting the benefit of the positive OTC mix. All those issues that I mentioned about trade negotiations is behind us. per informarci del problema. Like-for-like revenue growth in Q4 was 6.2%. Is the business profitable over there? We delivered a year of strong revenue growth and profit delivery and free cash flow. Please enable Cookies and reload the page. Reckitt Benckiser Group Plc, as its next CEO, choosing a consumer-industry veteran to build on the new path charted by Howard Schultz.. Narasimhan, 55, will join the coffee giant Oct. 1 while . To summarize, we delivered a year of very strong growth in 2022 and remain well-positioned to grow by mid-single digits in 2023. JP Morgan analysts cited Narasimhan's sudden departure just when investor confidence in the group's turnaround was improving. And in OTC, was there any reason -- or has there been any reason to top up inventories at retailers more than usual in what all in Q1? Si continas recibiendo este mensaje, infrmanos del problema There will be more brand investment. As Nicandro stated, we're now bigger, a stronger business and will continue to grow now from this expanded base. But I would be quite interested to gauge a bit your visibility on effectively the potential for the division -- disinfectant platform to be growing this year. We will continue to grow distribution for our brands, as we land our strengthened innovation pipeline. enva un correo electrnico a REUTERS/Phil Noble/Photo Illustration. Now we have five members of our Global Executive Committee presenting to you today, following which they'll be happy to take any Q&As that you may have. Therefore, we expect adjusted operating margins to be in line or slightly above 2022 levels when excluding the one-off benefit of circa 80 basis points related to U.S. And as I said, when you look at the different subsegments of Lysol, we're pretty much growing across the board share except for one segment. Available in nearly 200 countries, our brands are loved and trusted by people all over the world. See here for a complete list of exchanges and delays. Reckitt Benckiser Group plc ("Reckitt") today announces that its CEO, Laxman Narasimhan will step down as Chief Executive Officer on September 30, 2022. If you have an ad-blocker enabled you may be blocked from proceeding. We have a fantastic carryover going for the '23 because the majority of the price was taken at the beginning of the second half. Previously wrote about U.S. based retailers, major financial institutions and covered the Tokyo 2020 Olympic Games. Territroy Manager for pharmacy business manager Rekitt Benckiser (Former Employee) - London, Greater London - 31 October 2021. This led to a gross margin stabilization in Q4. This improvement in net debt, underpinned by strong free cash flow, has enabled us to deleverage to 2.1x adjusted EBITDA from 2.6x. We continue to make strong progress on this journey, and I look forward to sharing this update with you today. And after a slow start in the first half of 2022, we've seen sustained growth and market share gains in both H2 of last year and at the beginning of this year, and our growth plans remain in line with our original expectations. That's what I'm targeting at least, and that's what I'd like to deliver. Of course, as we go forward, we're very clear, we're not going to manage a lazy balance sheet. And with true Reckitt focus, we aim to win in the fast-growing spaces in the market. The shock departure of Reckitt Benckiser's well-regarded chief executive after just three years in the job has hit shares in the maker of household-name products from Cillit Bang to Nurofen.. Laxman Narasimhan is stepping down from the FTSE 100 multinational citing family reasons and "an opportunity" to return to his native US, which City observers interpreted as a sign he could be . Onze - Extensive proactive talent mapping across functions and roles. On the premium innovation, it's all about consumer value. Cash conversion was 83%, a significant improvement from the prior year. Why is that the right level? Consumers are actively switching everywhere in the world from the low tier to the high tier. You should not underestimate as well the share gains that we have seen in the OTC category. Since then Reckitt has enjoyed a boost from pandemic-driven sales of its disinfectant and cleaning products, which has been tapering off, as well as the US formula shortage. Disculpa It sounds like you expect to hand back all of the WIC, but keep a decent chunk of the non-WIC. Gross pricing actions across all regions for Nutrition in the year was around 8%. Reckitt Benckiser Group today announced that its CEO Laxman Narasimhan will step down from his position on September 30, 2022, and will relocate to the United States, for personal and family reasons. Importantly, we keep improving how we leverage data, technologies, partnerships and our scale. . The estimated hourly pay at Reckitt ranges from approximately $13.36 per hour for Backroom Associate to $34.70 per hour for Administrative Assistant.. Over the last three years, we added 16 million new households to our franchise globally. Or is it still too soon? Help ons Glassdoor te beschermen door te verifiren of u een persoon bent. While the numbers look good, they don't do justice to the incredible work done by the team to quickly react to the national prices that took place in order to provide significantly more safe high-quality formula to parents across the country. Quarter four, we had a similar decline in terms of volume that we had in Q3. Pros . The average Reckitt Benckiser salary ranges from approximately 0.4 Lakhs per year for a Helper to 89.6 Lakhs per year for a Head Trade Marketing. It was in the Southern Hemisphere, and it now is in the Northern Hemisphere. Both innovations are designed to grow the category as they deliver superior consumer delight at a premium pricing per dose. They enjoy significantly higher POS and margins per load -- detergent load alone. You need to guarantee that you lend them well. So therefore, we really are very confident that post quarter one, we return back to growth on Lysol. Question of earnings. I mentioned the new businesses we've built in InstaSoothe and other brands. Mexico's Best Employers (2022) Packaged Goods #477. . And I like competition on making that category grow. Our Fight for Access Fund has invested over 30 million in programs supporting water and sanitation, maternal and child health, and promoting sexual health and well-being. And we've made a reasonably, I think, appropriate and conservative assumption around what we can sell in the coming year. I will now hand over to Jeff to take you through our financials in more detail and our outlook for 2023. That's one point. Net revenue for the year at 2.5 billion was up 19.4 basis points on a like-for-like basis in the quarter and 22.9% for the year, with the U.S. being up around 40% in the year. Our in-market competitiveness remains strong with around 62% of our core CMUs on whom we are gaining share during the year, and we increased our share of total distribution points. Actually, I think innovation that brings consumer value is always at a good timing and can always come faster. read more. Yes, happy to comment on that. Join the community and see what employees are saying about their salaries. As it relates to the future, as we cited in another part of the presentation, we don't have a crystal ball. A lot of this has to do with being in the right categories. With respect to our Biofreeze acquisition, due to increased discount rates resulting from the current macroeconomic conditions, and the short-term category slowdown, we've recognized this year an impairment charge of 152 million. Our GBU ambition is anchored in Reckitt's purpose to relentlessly pursue a cleaner and healthier world with purpose-led superior brands. What gives you confidence that your industry-leading margins will not come under pressure from an evolving competitive environment? And we extended our market share by 300 basis points, and we have grown revenues with double-digit CAGR. EPS has grown 18.4% from 288.5p to 341.7p, with significant contribution coming from the strong earnings delivery this year. We mentioned this to you last year when we initially launched the product. I'm aware that the events of 2022 have created a lack of visibility for 2023. Now we're not giving specifics as to whether we take -- what percentage of that we retain because clearly, Abbott will come back into the market very strong and fight very hard to gain back market share. Aydanos a proteger Glassdoor verificando que eres una persona real. The final tranche of awards vested in March 2021 and were based on PepsiCos performance over the three-year period ending December 2020. This has led to strong category growth over the last three years. Saurabh has expertise in driving growth, turning around operations, and corporate development. We create simple, innovative products that make it easy for individuals, families and communities to live healthier and happier. And with pricing actions stronger in the second half of the year, this really positions us favorably as we look to 2023. It was led by our OTC portfolio, where we both drove strong market share gains across the majority of our brands and benefited from a long, strong cold and flu season. Reckitt employees rate their compensation and benefits as 3.8 out of 5. It is these high gross margins, which fund investment to support our innovation pipeline, whilst delivering industry-leading operating margins in our segment. Just how you're thinking about comping that in 2023 in terms of kind of the base there. Laxman Narasimhan, PepsiCo's chief commercial officer, will succeed Kapoor as CEO in September 2019. So all in all, I don't think it's a timing issue. I have been offered an opportunity to return to the UnitedStates and although it is difficult to leave, it is the right decision for me and my family.". real person. As Nicandro is moving to the UK, he is eligible for relocation benefits. Importantly, POS remained well above pre-pandemic levels, and we exited quarter four with POS in the high 40s above 2021. Ci We're now generating around $200 million of POS in the U.S. alone. Now importantly, Lysol net revenue is around 45% higher in 2022 than 2019. From a category perspective, we have a very significant OTC portfolio with intimate wellness and germ protection making other meaningful contributions. Excluding the benefit from the competitor supply issues in the U.S., like-for-like net revenue would have grown by around 5% in the year. And those things have been resolved. If there's any change, then we'll come back and we'll give you that update in those intervals. See the latest news and investor news from Reckitt. Now this was due to reduced investment in Russia and the fact we did not increase our BEI spend in proportion to net revenue growth in two key areas: U.S. A win for our customers. Are there other geographies where you could do that and we could expect revenue synergies from sort of unwinding some of that RB 2.0 separation? Reckitt has always been best-in-class in terms of working capital. message, contactez-nous l'adresse It's our first aerosol-free auto spray, and it delights with a new range of natural fragrances that consumers prefer. The revenue margin delivery, combined with some ForEx tailwinds, enabled us to deliver adjusted EPS of 341.7 billion, growth of over 18%. Moving on to our people. Yes, Hygiene. And then the second is on a comment you made, Jeff, around working capital. So that was a high comparator, but we did ship more in Q4 of '22. It's an unexpected move. So this additional revenue stream to WIC will be zero from March onwards. With the symptoms of COVID becoming more flu-like over time, the lines are blurring between the two. Quarter one is still with the Omicron peak that we have and that you can all read will be negative in volumes and then our trends will improve. Once we have wrapped up, we will be delighted to take any questions you may have. Before we start, I'd like to just draw your attention to the usual disclaimer in respect to forward-looking statements. So there was a pre-COVID average. We lost, what, 20 basis points for private label last year in Hygiene; we gained 20 basis points in Health. We expect record cost inflation in 2023 to moderate with single-digit increases, and we have the benefit of the heavy lifting on pricing already implemented with significant carryover now into 2023. Adjusted operating profit margin of 23.1% was up 710 basis points, and this reflects our turnaround and improvement in our earnings model in the developing markets, plus the positive leverage benefit from the U.S. We've said we're not uncomfortable with consensus, which assumes we keep a little bit of that 80 in 2023. So at an operating margin level, our business in Latin America and ASEAN, the two regions where we're really strong is somewhat similar. Our OTC team have worked hard to broaden the shoulders of our trusted market-leading brands through innovation, entering adjacent categories and even entering some new geographies. The 66-year old will receive a salary of 1.1 million pounds ($1.3 million) as Reckitt CEO, the company said, adding that he is being appointed on a rolling contract with six months' notice on . Laxman has decided for personal and family reasons to relocate back to the United States and has been approached for an opportunity that enables him to live there. So I expect a better trend going for '23. Sure. Chief executive pay, said Lambert, had risen from 47 times average wages to 81 times in the last 10 years. Reckitt Benckiser employees earn $65,000 annually on average, or $31 per hour, which is 2% lower than the national salary average of $66,000 per year. Reckitt Benckiser Group plc published this content on 08 April 2021 and is solely responsible for the information contained therein. So this game can actually work very nicely for us, and that's why we are confident that we get that expansion which we are talking about. To know first hand how is it like to work at Reckitt Benckiser read detailed reviews by job profile, department and location in the reviews section. Find out the highest paying jobs at Reckitt Benckiser and salaries by location, department, and level. But you see, by our margins guidelines and everything else, that it's not going to have a huge setback in terms of to expect the business to deliver. But that's why we also invest behind it. Chairman Chris Sinclair and the nomination committee have started the process to identify "the best long-term candidate to take Reckitt on its next phase of growth", the company said. So we saw an opportunity in India. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. In one of our fastest ever innovation cycles, we launched these pods in June 2022, following an innovation cycle of just eight months from idea to launch, and quickly achieved a 6% value share within the category. We had single-digit inflation. Yes, on Lysol, first of all, even if you compare versus pre-pandemic, we have grown volume nicely in the double-digit area. Look, the strength of the free cash flows significantly improving from last year, which I think is something which I wouldn't say is unique to us, but it's a great indication of the overall strength of the business, means that the net debt-to-EBITDA has come right down to 2.1. So moving on now to Nutrition. Whilst momentum and delivery will continue, we must get better. But the profitability on that WIC was similar to non-WIC. He is deeply familiar with the strategy and direction of Reckitt, having been on the board for a number of years, including several years as the Senior Independent Director. Participate in conducting annual salary survey and perform such other relevant HR surveys. Nutrition business. There was a question about the overall underlying margins of our infant formula business. This reduces the 2020 single total figure of remuneration (including buyout arrangements) to 8,434,334. As a result of this great progress in 2022, I am proud to highlight to you today a summary of some of the key strengths of our Nutrition business as we enter 2023. Shares in the maker of Durex condoms and Dettol cleaning products tumbled more than 4% on the news. Thank you for joining us. Nutrition business ex the benefit, it looks like the margin was about 18%. Okay. Salaries at Reckitt Benckiser, Inc. range from an average of 23,828 to 78,013 a year. Yes, as you said, it has been a very strong season. I have long admired Reckitt's single-minded focus on categories with a strong runway for long-term growth. Jeff is going to take the second one. Multinational consumer goods company Reckitt Benckiser on Thursday said its Chief Executive Officer Laxman Narasimhan will step down at the end of September after three years in the role. And I could bore you with the history of it. Find investor information and see what the media are saying about Reckitt. In the medium term, we expect adjusted operating profit to grow ahead of net revenue, and this means we remain on track to achieve mid-20s margins by the mid-20s. All quotes delayed a minimum of 15 minutes. Please. In developing markets, we strengthened our reputation with health care professionals, or HCPs, during the year. Now let me zoom into the U.S., by far Lysol's biggest market. So it has gone through 1st of February, will help us to recover margins as you would expect. Apr 2022 - Present1 year. I don't see any big movement in retailers stocking. Our continued focus on these areas have enabled ongoing ESG performance against key ratings such as MSCI, Sustainalytics, and ongoing efforts for good presence. The share ownership requirement will be 200,000 shares and there will be a formal post-employment shareholding requirement, for two years after departure. And as I said before, we still can do better, but I am pleased to see improvements in many fronts. So to summarize, 2022 was a very unusual year, but one where we made significant progress, strengthening our brands in our core markets. Of course, categories like hair care, which are very discretionary, you saw 5% price up, 7.5% volume down. Si vous continuez voir ce "It's disappointing to someone who has followed the stock for a long time," said Ashish Sinha, portfolio manager at Reckitt shareholder Gabelli. It put the resilience and grit of our teams to test, and they have risen to the challenges, as our people do. Se continui a visualizzare So the volumes in Europe, New Zealand, Australia, they have deteriorated in the Q4 at around minus 8%. 70% Approve of CEO. Good morning, everyone. I am therefore pleased that 2022 was a year of delivery and momentum for Reckitt. So it's quite a solid performance. Since sore throats are usually caused by viruses and not bacterial infection, antibiotics are, in many cases, ineffective. So some of these opportunities are really in our plans and we are looking at that. We will continue to focus on capacity and agility within our supply chain and ensure that we keep delivering for both our customers and consumers. Let's start from there. And how long this journey might take? And as we've, of course, discussed during the course of this year, the negative volume has been largely a consequence of Lysol rebasing from the peak levels of 2021. Our best-in-class program continues to deliver with efficiencies of 800 million during the year, enabling us to achieve our target of 2 billion gross margins this year. In the United States, our market share of non-WIC, i.e., the formula which parents choose and pay for themselves, is just under 50%, up from around 38% at the beginning of 2022. We also made very good progress regionalizing our supply chain. What are the group's prospects like for 2023 . The first one, Kris, would you like to take it? You see tax rates going up a little bit, but I see no reason, going forward -- earnings is going to be a nice steady growth. los inconvenientes que esto te pueda causar. I don't expect significant destocking. Third, we continue to strengthen our capabilities everywhere. We focus on six core categories. 24. We remain fully focused on the delivery of our strategy to protect the human nurture in the relentless pursuit of a cleaner, healthier world. Okay. We may -- it would be pretty much dependent in OTC, for example, on the size of the cold and flu season, but we don't see any big movement in retailing. High Pay Centre spokesman Stefan Stern singled out an 18m share-based long term incentive . I'm pleased to say that we have done so. The second one is for Volker. Company Participants. Auto Dish has enormous penetration upside. So we would like you to start at the back. Wenn If you look at private label, I know that private label has gained some share during the year. Nutrition. 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