{"id":16112,"date":"2017-10-01T15:34:19","date_gmt":"2017-10-01T19:34:19","guid":{"rendered":"http:\/\/www.pgmcapital.com\/?p=16112"},"modified":"2017-10-01T15:34:19","modified_gmt":"2017-10-01T19:34:19","slug":"why-investing-in-reckitt-benckiser-can-be-lucrative","status":"publish","type":"post","link":"https:\/\/www.pgmcapital.com\/nl\/why-investing-in-reckitt-benckiser-can-be-lucrative\/","title":{"rendered":"Why Investing in Reckitt &#038; Benckiser can be lucrative"},"content":{"rendered":"<p>Dear PGM Blog reader,<\/p>\n<p>In this weekend blog article, we want to take the opportunity to discuss with you why Investing in Reckitt &amp; Benckiser Group plc, can be lucrative for value investors.<\/p>\n<h3>INTRODUCTION:<\/h3>\n<p><b>Reckitt &amp; Benckiser Group plc<\/b>\u00a0<strong>(RB.L)<\/strong>\u00a0is a British\u00a0multinational consumer goods\u00a0company headquartered in\u00a0Slough, England, which employs approximately 36,000 people worldwide, and has operations in around 60 countries and its products are sold in nearly 200 countries.<\/p>\n<p><a href=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/reckitt-benckiser.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-16127\" src=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/reckitt-benckiser.jpg\" alt=\"\" width=\"300\" height=\"133\" \/><\/a><\/p>\n<p>It is a producer of health, hygiene and home products, which was formed in 1999 by the merger of the UK-based\u00a0<b>Reckitt &amp; Colman plc<\/b>\u00a0and the Netherlands-based\u00a0<b>Benckiser NV<\/b>.<\/p>\n<p>The majority of the company&#8217;s products are into three main categories \u2013 health, hygiene and home \u2013 with other brands belonging to three further categories: food, pharmaceuticals and portfolio brands. The company&#8217;s strategy is to have a highly focused portfolio concentrating on its 19 most profitable brands, which are responsible for 70% of net revenues<\/p>\n<p>The companies brands include beside others, the\u00a0antiseptic\u00a0brand\u00a0Dettol, the\u00a0sore throat\u00a0medicine\u00a0Strepsils, the\u00a0hair removal\u00a0brand\u00a0Veet, the immune support supplement\u00a0Airborne,\u00a0the\u00a0air freshener, Air Wick, Calgon, Clearasil, Cillit, Bang,\u00a0Durex,\u00a0Lysol,\u00a0Mycil\u00a0and\u00a0Vanish.<\/p>\n<p><a href=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/reckitt-benckiser_products.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-16121\" src=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/reckitt-benckiser_products-300x210.jpg\" alt=\"\" width=\"500\" height=\"350\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/reckitt-benckiser_products-300x210.jpg 300w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/reckitt-benckiser_products-768x538.jpg 768w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/reckitt-benckiser_products.jpg 1000w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><\/p>\n<p>In 2014, Reckitt Benckiser announced it was dropping its full name in favour of RB.\u00a0According to the chief executive, Rakesh Kapoor, the old name was &#8220;a bit of a mouthful&#8221; and the name change would make life easier.<\/p>\n<p>Reckitt &amp; Benckiser Group, shares are listed on the\u00a0London\u00a0Stock Exchange and is a constituent of the\u00a0FTSE 100 Index.<\/p>\n<h3>PGM CAPITAL ANALYSIS &amp; COMMENTS:<\/h3>\n<p>Reckitt Benckiser\u00a0is in the top 25 of companies listed on the London Stock Exchange. Today it is either the global\u00a0 No 1 or No 2 in the majority of its fast-growing categories, driven by an exceptional rate of innovation.<\/p>\n<p>RB has close to half of its revenues coming from emerging markets and the rest from developed market area. RB people and its culture are at the heart of the company&#8217;s success. They have an intense drive for achievement and a desire to outperform wherever they focus, including in sustainability where the company has reduced its carbon footprint by 20% in 5 years and is now targeting to deliver a 1\/3 reduction in water impact, 1\/3 further reduction in carbon and to have 1\/3 of its net revenue coming from more sustainable products by 2020.<\/p>\n<h4>RB take over of Mead Johnson:<\/h4>\n<p>On 10 February 2017, Reckitt Benckiser Group announced it had agreed to buy Mead Johnson (NYSE: MJN).<\/p>\n<p><a href=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/a60a0baa378829e859f0c75d75ec3752.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-16131 size-medium\" src=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/a60a0baa378829e859f0c75d75ec3752-300x109.jpg\" alt=\"\" width=\"300\" height=\"109\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/a60a0baa378829e859f0c75d75ec3752-300x109.jpg 300w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/a60a0baa378829e859f0c75d75ec3752-768x279.jpg 768w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/a60a0baa378829e859f0c75d75ec3752-1024x372.jpg 1024w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/a60a0baa378829e859f0c75d75ec3752.jpg 1238w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>Under the terms of the merger agreement between Mead Johnson and RB, stockholders of Mead Johnson will receive $90 in cash for each share -valuing the total equity at US$16.7billion &#8211; upon closing of the transaction, and Mead Johnson will become a new division of RB, with its globally-recognized Enfamil\u00ae and Nutramigen\u00ae brands joining RB\u2019s portfolio of leading consumer health brands.<\/p>\n<h4>Stock price &amp; Dividends:<\/h4>\n<p>As can be seen from below 5-year chart the shares of the company have grown from GBP 35.597 a share, on September 30, 2012, to GBP 68.13 a share, at the close of the market on Friday September 29, 2017, an increase of approx. 91.39 percent.<\/p>\n<p><a href=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/Screen-Shot-2017-09-30-at-5.30.45-PM.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-16124\" src=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/Screen-Shot-2017-09-30-at-5.30.45-PM-300x159.png\" alt=\"\" width=\"600\" height=\"318\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/Screen-Shot-2017-09-30-at-5.30.45-PM-300x159.png 300w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/Screen-Shot-2017-09-30-at-5.30.45-PM-768x407.png 768w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/Screen-Shot-2017-09-30-at-5.30.45-PM-1024x543.png 1024w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/Screen-Shot-2017-09-30-at-5.30.45-PM.png 1137w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><\/p>\n<p>As can be seen from below chart, the company&#8217;s increased its yearly dividend from GBP 0.45 in FY-2006 to GBP 1.532 in FY 2016, an increase of its dividend with approx. 240 percent in 10-years.<\/p>\n<p><a href=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/download.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-16126\" src=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/download-289x300.png\" alt=\"\" width=\"500\" height=\"519\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/download-289x300.png 289w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/download.png 417w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><\/p>\n<p>Based on the company&#8217;s fundamentals, strong brands and product mix, we have a BUY rating on the shares of the Company.<\/p>\n<p>Last but not least, before taking any investment decision, always take your investment horizon and risk tolerance into consideration and keep in mind that; share prices don\u2019t move in a straight line and that Past Performance Is Not Indicative Of Future Results.<\/p>\n<p>Yours sincerely,<\/p>\n<p><a href=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2015\/06\/eric.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-14\" src=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2015\/06\/eric.jpg\" sizes=\"auto, (max-width: 112px) 100vw, 112px\" srcset=\"http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2015\/06\/eric.jpg 160w, http:\/\/www.pgmcapital.com\/wp-content\/uploads\/2015\/06\/eric-150x150.jpg 150w\" alt=\"\" width=\"112\" height=\"112\" \/><\/a><\/p>\n<p>Eric Panneflek<\/p>","protected":false},"excerpt":{"rendered":"<p>Dear PGM Blog reader, In this weekend blog article, we want to take the opportunity to discuss with you why Investing in Reckitt &amp; Benckiser Group plc, can be lucrative for value investors. INTRODUCTION: Reckitt &amp; Benckiser Group plc\u00a0(RB.L)\u00a0is a British\u00a0multinational consumer goods\u00a0company headquartered in\u00a0Slough, England, which employs approximately 36,000 people worldwide, and has operations<a href=\"https:\/\/www.pgmcapital.com\/nl\/why-investing-in-reckitt-benckiser-can-be-lucrative\/\">[&#8230;]<\/a><\/p>\n","protected":false},"author":2,"featured_media":16135,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51],"tags":[],"class_list":["post-16112","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pgm-capital-blog"],"_links":{"self":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/16112","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/comments?post=16112"}],"version-history":[{"count":20,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/16112\/revisions"}],"predecessor-version":[{"id":16139,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/16112\/revisions\/16139"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media\/16135"}],"wp:attachment":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media?parent=16112"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/categories?post=16112"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/tags?post=16112"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}