SLOUGH (dpa-AFX) - Reckitt Benckiser Group Plc (RBGPF.PK, RB.L), on Wednesday, announced a strategic initiative aimed at reorganizing the company into a leading consumer health and hygiene organization, with a focus on achieving strong growth and margin performance relative to its peers. This initiative involves a substantial refinement of its brand portfolio and a transition to a more streamlined, efficient organizational structure, all aimed at optimizing long-term value for its shareholders.
The company stated that it will concentrate on a portfolio of market-leading Powerbrands, in accordance with the criteria laid out in its October 2023 strategy update. These high-growth, high-margin Powerbrands are highly favored by consumers and hold dominant market positions in sectors with substantial potential for long-term expansion. These measures are the outcome of a comprehensive review carried out over the past nine months. This refined portfolio creates opportunities to transition to a more streamlined, efficient, and expedient organization.
Further, Reckitt will seek to exit its portfolio of leading home care brands that are no longer core including Air Wick, Mortein, Calgon, and Cillit Bang, with FY2023 net revenue of £1.9 billion, by the end of 2025 and will consider all options to maximize shareholder value.
The Mead Johnson Nutrition business, with its market-leading brands of Enfamil and Nutramigen, is now non-core and Reckitt will consider all strategic options to maximize shareholder value.
Reckitt plc will continue to pay a progressive dividend and return surplus cash to shareholders, including excess proceeds from future transactions.
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