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Reckitt Benckiser (LON:) Group plc, the British multinational consumer goods company known for brands like Dettol, Harpic, and Durex, has announced a £1 billion ($1.36 billion) share buyback program. The program, set to run over the next 12 months, comes in the wake of a 3.6% year-on-year decrease in quarterly revenue to £3.60 billion ($4.91 billion).
The company attributed the revenue dip to challenges faced by its US Nutrition business and its over-the-counter portfolio. Despite this setback, Reckitt Benckiser remains optimistic about its full-year targets, bolstered by a 7.5% price/mix improvement which was partially offset by a 4.1% volume decline amidst foreign-exchange headwinds.
Looking ahead, the company reaffirmed its annual revenue growth forecasts and now aims for mid single-digit like-for-like net revenue growth and adjusted operating profit growth to surpass net revenue growth. This aligns with the firm’s projection of a 3-5% like-for-like revenue growth for 2023. Additionally, it expects an adjusted operating margin slightly above this year’s margin of 23.8%.
The announcement follows a slight miss on Q3 expectations but showcases the firm’s confidence in its future performance and value proposition to shareholders. The share buyback program is expected to provide further support to earnings per share in the coming year while also signaling Reckitt Benckiser’s commitment to delivering shareholder value despite recent challenges.
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