Reckitt Benckiser Group have announced their 2021 proposed dividend of 174.6p remains in line with 2020 consistent with our approach of sustaining 2019 levels to rebuild dividend cover to two times. Thereafter, they intend to grow the dividend progressively in line with adjusted net income.
Other financial highlights include:
Full year LFL net revenue growth of +3.5% (+17.4% on a two-year stacked basis1) ahead of expectations led by a strong performance in Hygiene and a recovery in Health as we exited the year.
Q4 LFL net revenue growth of +3.3% with Health (+17.5%) offsetting Hygiene (-6.1%) lapping tough prior year comparators.
Strong momentum: Brands less sensitive to COVID dynamics, representing c.70% of the portfolio grew, on average, by mid-single-digits in each quarter of 2021.
Strong progress in repositioning our business towards higher growth. Key highlights include the divestments of IFCN China and Scholl, the proposed disposal of E45, and the acquisition of Biofreeze. Approximately 9% of the portfolio repositioned.
Adjusted operating margin (ex IFCN China) of 22.9% in line with guidance. Adjusted operating loss related to IFCN China of £67m, reflecting difficult trading throughout the year and c.£40m of exit costs incurred immediately prior to the disposal of the business.
IFRS operating loss of £804m (2020: £2,160m profit) reflects the loss in relation to the strategic review and disposal of IFCN China.
