Reckitt Benckiser: Bang, And The Homecare Brands Are Gone

This week, Dividend Watch takes in a product overhaul at dividend payer Reckitt Benckiser

Christopher Johnson 20 September, 2024 | 9:38AM
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Christopher Johnson: Welcome to Dividend Watch, my name is Christopher Johnson.  

Dividend payer Reckitt Benckiser is in early talks with some potential buyers for its homecare brands.  

It is estimated the consumer households and goods company could get more than £6 billion in the sales of brands like air freshener Airwick and Cillit Bang cleaner. Goldman Sachs is also working with Reckitt on the possible sale of its infant formula brand Mead Johnson 

For Diana Radu, equity analyst at Morningstar, investors have welcomed Reckitt's plans.  

She argues that the commonality across these brands is their more regional focus compared with the core brands as well as their presence in areas that are more susceptible to threats from private labels.  

In July, Reckitt announced plans to reshape its business to focus on a portfolio of power bands ranging from Gaviscon to Nurofen.  

Reckitt aims to complete the disposals by the end of 2025. Shares in Reckitt Benckiser are currently trading at £46.49. The business pays an interim dividend of 80.40p. 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Reckitt Benckiser Group PLC4,575.00 GBX-0.33Rating

About Author

Christopher Johnson  is data journalist at Morningstar

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