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Durex and Veet owner Reckitt Benckiser said first-half revenues moved higher with the consumer goods reiterating its confidence amid a challenging backdrop. Revenue grew to £7.4bn in the first six months of the year, an 8.1% increase compared to the same period 12 months ago and 6% growth like-for-like.

Reckitt Benckiser Group is a global manufacturer and seller of health, hygiene, and nutrition products. Reckitt has benefited well from the pandemic, but is fundamentally attractive due to the brands it owns. Margins are above the industry average, allowing Reckitt to deleverage and fund distributions.

Reckitt Benckiser Group plc (OTCPK:RBGLY) Q1 2023 Results Conference Call April 26, 2023 1:00 PM ET Company Participants Richard Joyce - IR Nicandro Durante - CEO Jeff Carr - CFO Conference Call Participants Rashad Kawan - Morgan Stanley Guillaume Delmas - UBS Celine Pannuti - JPMorgan Bruno Monteyne - Bernstein James Edwardes Jones - RBC Iain Simpson - Barclays Jeremy Fialko - HSBC Martin Deboo - Jefferies Tom Sykes - Deutsche Bank Chris Pitcher - Redburn Karel Zoete - Kepler Richard Joyce Good morning, everyone. Welcome to Reckitt's Q1 trading update.

Reckitt Benckiser Group PLC UK:RKT said Wednesday that its first-quarter revenue rose, supported by a broad-based growth across its businesses, and said it has appointed Kris Licht as Chief Executive Officer to succeed Nicandro Durante.

Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) revealed it sold lower volumes in the first quarter as it continued to hike prices, and said it is promoting Kris Licht, currently chief customer officer, to be its new chief executive. The maker of brands ranging from Durex condoms and Nurofen painkiller to Dettol cleaners and Air Wick fresheners said Licht, who joined from PepsiCo (NASDAQ:PEP) in 2019, will become CEO-designate in May, join the board in June and take over the role from current interim CEO Nicandro Durante by the end of the year.

Reckitt Benckiser still faces headwinds to its ratings, according to Deutsche Bank, which cut its target price to 6,500p from 6,250p while maintaining its hold rating. Analysts at the bank said uncertainty about the level of market share loss in the infant formula market to Abbott in the US and volatility in cough, cold and flu will “hold back the valuation.

Reckitt Benckiser's first-quarter sales are expected to be ahead of Jefferies' previous consensus, with the broker remaining hold on the consumer goods group with a target price of 5,870p. The US bank said that sales, despite its general scepticism, “reflect improving sell-out trends towards the end of the quarter.

Reckitt Benckiser should enjoy a more normalised base as it comes out of three years of reinvestment, according to JP Morgan. The US bank has an overweight rating on the stock with a target price set at 7,500p.

Reckitt Benckiser could report great results for fiscal 2022 with the top and bottom lines improving and all three segments contributing to growth. While management is a little more cautious for 2023 (only low single-digit growth), the long-term targets see growth rates in the mid-to-high single digits.

Reckitt Benckiser PLC management's frustration that the market's lack of love is likely to be extended as the shares received another downgrade, with analysts also slamming the ‘mystifying' lack of chief executive appointment six months after the departure of Laxman Narasimhan. There were two slightly disparaging notes on the Durex, Clearasil and Air Wick maker on Monday morning, with Deutsche Bank removing the shares from its ‘buy' list and moving to a ‘hold' rating, with target price remaining 6500p.