Reckitt Benckiser Group (RB.)

Sector:

Household Goods

Index:

FTSE 100

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6,170.00p
   
  • Change Today:
      90.00p
  • 52 Week High: 7,155.00p
  • 52 Week Low: 5,593.00p
  • Currency: UK Pounds
  • Shares Issued: 709.06m
  • Volume: 868,350
  • Market Cap: £43,749m
  • RiskGrade: 110
  • Beta: 0.01

Indivior warns of potential full-year loss as quarterly profit eases

By Abigail Townsend

Date: Thursday 02 May 2019

LONDON (ShareCast) - (Sharecast News) - Drug maker Indivior, which has been accused by the US Department of Justice of fraudulently marketing an addiction treatment, has warned it could slide into the red this year.
Updating investors on its first-quarter performance, the London-listed company said net revenue for the full year was expected to be in a range of $525m to $575m, while income before exceptional items was likely to range from a profit of $10m to a loss of $40m.

The company has been hit by generic film competition to Suboxone, one of its main drugs.

Chief executive Shaun Thaxter said: "Our share loss to date has been lower than suggested by historic industry analogues and we have also benefited from strong early shipments of our authorised generic.

"While this represents an encouraging operational start to the year, we continue to prudently assume that we will face an accelerated pace of share erosion in the coming quarters."

Net revenues in the three months to 31 March were down 6% at $238m, while operating profile tumbled 35% to $75m. Excluding exceptional items, adjusted operating profit rose 3%, however, to $102m while adjusted earnings per share came in 9% higher at $0.12.

Thaxter added: "Looking ahead, we do not underestimate the amount of work we still have to do. However, we remain undaunted in the pursuit of our vision to improve the lives of patients suffering from addiction and its co-occurring disorders."

Shares in Indivior, which was spun out of Reckitt Benckiser in 2014, tumbled more than 70% last month when it was announced that the company had been indicted by a grand jury.

The DoJ is accusing Indivior of operating an illicit scheme to increase sales of Suboxone Film that put "profits over the health and well-being of patients" and is seeking fines of at least $3bn. Indivior contests all charges and said it will "vigorously defend itself".

The investigation began in 2013 and relates to alleged practices carried out before Indivior was spun out, meaning the probe is also weighing on Reckitt Benckiser.

The blue chip consumer goods group warned on Thursday that final costs might be "substantially higher" than the $400m provision taken in 2017. It also noted that while it was committed to resolving the issue it could not predict "with any certainty" if an agreement is struck.

As at 1330 BST, shares in Indivior where ahead 8% while Reckitt Benckiser was largely flat. In a note, Citi said Indivior's full-year revenue guidance was better than its own estimates, as was the company's net income guidance, with the bank previously pencilling in a loss of $49m.

Citi also noted that another Indivior drug, Sublocade, had a slighter better-than-expected first quarter.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Reckitt Benckiser Market Data

Currency UK Pounds
Share Price 6,170.00p
Change Today 90.00p
% Change 1.48 %
52 Week High 7,155.00p
52 Week Low 5,593.00p
Volume 868,350
Shares Issued 709.06m
Market Cap £43,749m
Beta 0.01
RiskGrade 110

Reckitt Benckiser Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
91.57% below the market average91.57% below the market average91.57% below the market average91.57% below the market average91.57% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Price Trend
1.39% above the market average1.39% above the market average1.39% above the market average1.39% above the market average1.39% above the market average
18.52% above the sector average18.52% above the sector average18.52% above the sector average18.52% above the sector average18.52% above the sector average
Income
33.4% below the market average33.4% below the market average33.4% below the market average33.4% below the market average33.4% below the market average
73.91% below the sector average73.91% below the sector average73.91% below the sector average73.91% below the sector average73.91% below the sector average
Growth
4.48% below the market average4.48% below the market average4.48% below the market average4.48% below the market average4.48% below the market average
7.14% above the sector average7.14% above the sector average7.14% above the sector average7.14% above the sector average7.14% above the sector average

What The Brokers Say

Strong Buy 8
Buy 3
Neutral 5
Sell 1
Strong Sell 4
Total 21
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Reckitt Benckiser Dividends

  Latest Previous
  Interim Final
Ex-Div 22-Aug-19 18-Apr-19
Paid 26-Sep-19 23-May-19
Amount 73.00p 100.20p

Trades for 16-Aug-2019

Time Volume / Share Price
16:50 218 @ 6,146.00p
16:50 82 @ 6,146.00p
16:46 400 @ 6,139.00p
16:46 300 @ 6,149.33p
16:35 301,827 @ 6,170.00p

Reckitt Benckiser Key Personnel

CEO Rakesh Kapoor
CFO Adrian Nevil Hennah

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