Business Description

Reckitt Benckiser Group Plc (RB or ‘the company) is a manufacturer and marketer of home, hygiene, and health care products. The company sells its products through multiple retailers, mass markets, and grocery chains. It has a business presence in 60 countries across Europe, North America, Latin America, Africa, the Middle East, and the Asia Pacific. The company operates through two reportable business segments: Health, Hygiene, and Nutrition. Under the Health segment, RB offers health relief products, over-the-counter (OTC) drugs, depilatory products, health hygiene products, vitamins, minerals, and supplements (VMS), and health and wellness products.

The segment markets its products under Gaviscon, Durex, Mucinex, Scholl, Nurofen, Strepsils, Dettol, Clearasil, and Veet brand names. Under the Hygiene segment, the company offers home and personal hygiene products, including disinfectant cleaners, fabric cleaners, fragrances, multipurpose and specialty cleaners, automatic dishwashing detergents, pest control, and acne treatments.

The segment markets its products under Finish, Cillit Bang, Harpic, Mortein, Lysol, Air Wick, Vanish, Calgon, and Woolite brand names. Under the Nutrition segment, RB offers adult nutrition, minerals, vitamins, and supplement products. The segment markets its products under Airborne, Move Free, Mead Johnson, and Schiff brand names. Geographically, the company classifies its operations into four regions: the US, the UK, Greater China, and All Other Countries. The company was founded in 1819 and is headquartered in Slough, the United Kingdom.

Key Financials

Revenue (US$ Mn):

• Reckitt Benckiser Group Plc’s annual revenue for 2021 was US$ 15,534 Mn, a -16.66% decrease from 2020
• The annual revenue generated by Reckitt Benckiser Group Plc in 2020 was US$ 18,640 Mn
• At a 2.92% increase from , Reckitt Benckiser Group Plc’s annual revenue of US$ 16,593 Mn was indexed in 2019
• Reckitt Benckiser Group Plc generated total revenue of US$ 16,123 Mn in 2018

 

Operating Income (US$ Mn):

• Reckitt Benckiser Group Plc’s operating income for 2021 was US$ 3,377 Mn, a 17.38% increase from 2020
• The operating income generated by Reckitt Benckiser Group Plc in 2020 was US$ 2,877 Mn
• At a -164.73% decrease from , Reckitt Benckiser Group Plc’s operating income of US$ -2,524 Mn was indexed in 2019
• Reckitt Benckiser Group Plc generated an operating income of US$ 3,899 Mn in 2018

 

Net Income (US$ Mn):

• Reckitt Benckiser Group Plc’s net income for 2021 was US$ 2,417 Mn, a 50.76% increase from 2020
• The net income generated by Reckitt Benckiser Group Plc in 2020 was US$ 1,603 Mn
• At a -269.87% decrease from , Reckitt Benckiser Group Plc’s net income of US$ -4,741 Mn was indexed in 2019
• Reckitt Benckiser Group Plc generated a net income of US$ 2,791 Mn in 2018

 

Operating Margin %:

• Reckitt Benckiser Group Plc’s operating margin for 2021 was 22%, a 40.91% increase from 2020
• The operating margin generated by Reckitt Benckiser Group Plc in 2020 was 15%
• At a -162.81% decrease from , Reckitt Benckiser Group Plc’s operating margin of -15% was indexed in 2019
• Reckitt Benckiser Group Plc generated an operating margin of 24% in 2018

 

Gross Margin %:

• 16% was the gross margin generated by Reckitt Benckiser Group Plc in 2021
• Reckitt Benckiser Group Plc’s gross margin for 2020 was 9%, a -70.18% decrease from 2019
• From 2018’s gross margins, Reckitt Benckiser Group Plc registered a 64.74% increase in 2019, amounting to 29%
• A gross margin of 17% was generated in 2018 by Reckitt Benckiser Group Plc

SWOT Analysis

Strengths

Market Leading Brands

Strong brands are built by RB across the home, hygiene, and health product categories. Gaviscon, Durex, and Mucinex are the company’s top brands. Strepsils is the most popular sore throat medication worldwide. Mucinex is the top-selling cough remedy in the US. Durex is the number 1 brand for condoms. Gaviscon and Nurofen are the top brands in Europe and Australia for analgesics.

Gaviscon also has a leading brand over-the-counter in digestive health. With its leading brands in hygiene, such as Dettol (leading antiseptic brand), Lysol(leading germ kill brand), Veet (“leader in the depilatory product), Finish (“leading automatic dishwashing brand”), and Mortein (“ranked second in pest control products”), the group is a major player in this market.

Its brands are also strong in the home category, with Vanish (the world’s most popular stain remover), Calgon (1st in water softeners worldwide), Air Wick (2nd in air care globally), and Woolite (2nd in garment care global). A strong brand portfolio gives RB better visibility and presence across all distribution channels, allowing it to reach large customer bases and increase its margins.