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• Group Net Revenue Growth: 1.4% in 2024, in line with guidance of 1% to 3% growth.

• Health and Hygiene Like-for-Like Net Revenue Growth: 4.6% with volume growth of 2.1%.

• Adjusted Operating Profit Increase: 8.6% driven by the fuel for growth program.

• EPS Growth: 7.9% supported by share buyback and lower tax rate.

• Cash Returns to Shareholders: GBP2.7 billion, up 75% year-on-year.

• Free Cash Flow: GBP2.2 billion with a 91% conversion rate.

• Gross Margin: Expanded by 70 basis points, remaining above 60%.

• Adjusted Operating Margin: Expanded by 140 basis points to 24.5%.

• CapEx Investment: GBP500 million reflecting multi-year investments in R&D and supply chain.

• Nutrition Like-for-Like Net Revenue Decline: 7.3% due to supply disruption.

• Hygiene Like-for-Like Growth: 4.2% with balanced volume and price mix growth.

• Health Like-for-Like Growth: 2.1% with strong performance in non-seasonal power brands.

• Net Debt to EBITDA: 2 times, maintaining a strong balance sheet.

• Dividend Increase: 5% for the full year.

• Market Share Gains: 55% of top CMUs held or gained market share.

• Warning! GuruFocus has detected 3 Warning Sign with RBGLY.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Reckitt Benckiser Group PLC (RBGLY) reported a solid financial performance for 2024, with group net revenue growing by 1.4% in line with guidance.

• The company achieved a 4.6% like-for-like net revenue growth in health and hygiene, excluding seasonal OTC impacts.

• Reckitt Benckiser Group PLC (RBGLY) increased its adjusted operating profit by 8.6%, supported by the fuel for growth program.

• The company returned GBP2.7 billion to shareholders through dividends and share buybacks, marking a 75% increase from the previous year.

• Reckitt Benckiser Group PLC (RBGLY) has made significant progress in organizational simplification, reducing management layers from five to three to enhance decision-making and accountability.

Negative Points

• The company's North American performance was negatively impacted by a weak cold and flu season, affecting seasonal OTC sales.

• Reckitt Benckiser Group PLC (RBGLY) reported a 7.3% decline in like-for-like net revenue for its nutrition segment, primarily due to supply disruptions from a tornado.

• The company faces ongoing litigation challenges related to Mead Johnson Nutrition, which could impact future performance.

• Reckitt Benckiser Group PLC (RBGLY) has set a cautious growth guidance for 2025, reflecting uncertainties in the macroeconomic environment.

• The company acknowledged challenges in the competitive air care market in the US, which could affect Essential Home's performance in the first half of 2025.