Core Viewpoint - A class action lawsuit has been filed against Reckitt Benckiser Group PLC on behalf of purchasers of American Depositary Shares (ADSs) during the period from January 13, 2021, to July 28, 2024, due to alleged misleading statements regarding the safety of its cow's milk-based formula, Enfamil, for preterm infants [1][5]. Group 1: Lawsuit Details - The lawsuit claims that Reckitt failed to inform investors that preterm infants consuming Enfamil were at an increased risk of developing necrotizing enterocolitis (NEC) [5]. - It is alleged that Reckitt's positive statements about its business and operations were materially false and misleading, lacking a reasonable basis during the class period [5]. - Investors reportedly suffered damages when the true details about the risks associated with Enfamil became public [5]. Group 2: Legal Representation - The Rosen Law Firm is representing the investors and encourages potential class members to select qualified counsel with a successful track record in securities class actions [4]. - Investors who purchased Reckitt ADSs may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A lead plaintiff must move the court by August 4, 2025, to represent other class members in the litigation [1][3].

Core Viewpoint - A class action lawsuit has been filed against Reckitt Benckiser Group Plc, alleging securities fraud and unlawful business practices [2][4]. Group 1: Lawsuit Details - The lawsuit involves allegations against Reckitt and certain officers and directors for engaging in securities fraud or other unlawful business practices [2]. - Investors have until August 4, 2025, to request to be appointed as Lead Plaintiff if they purchased Reckitt securities during the Class Period [2]. Group 2: Financial Impact - On March 15, 2024, Reckitt's American Depositary Share (ADS) price fell by $1.87, nearly 14%, closing at $11.44 following a $60 million verdict against its Mead Johnson subsidiary for negligence related to infant formula [3][4]. - On July 29, 2024, after a similar lawsuit against Abbott Laboratories, Reckitt's ADS price dropped by $1.02, nearly 9%, closing at $10.64 [4]. Group 3: Company Background - Pomerantz LLP, the firm handling the lawsuit, is recognized for its expertise in corporate, securities, and antitrust class litigation, having a history of recovering multimillion-dollar damages for victims of securities fraud [5].

Core Viewpoint - Robbins LLP has initiated a class action lawsuit on behalf of investors who acquired Reckitt Benckiser Group PLC American Depository Shares (ADSs) between January 13, 2021, and July 28, 2024, alleging that the company misled investors regarding the safety of its Enfamil baby formula [1][2]. Allegations - The lawsuit claims that Reckitt failed to inform investors and consumers about the increased risk of necrotizing enterocolitis (NEC) in preterm infants consuming its cow's milk-based formula, Enfamil, and the potential negative impact on sales and legal exposure [2]. - A jury in Illinois awarded $60 million in a case against Mead Johnson, finding negligence in failing to warn about the risks associated with cow's milk-based formula, which led to a significant drop in Reckitt's ADS price [3]. - Following a similar case in Missouri, where Abbott Laboratories was found liable for NEC-related damages, Reckitt's ADS price also experienced a notable decline [4]. Class Action Participation - Shareholders interested in serving as lead plaintiffs in the class action must file a motion by August 4, 2025, but participation is not required to be eligible for recovery [5].

Group 1 - Reckitt Benckiser Group PLC (RBGLY) is currently outperforming its peers in the Consumer Staples sector, with a year-to-date gain of approximately 10.8% compared to the sector average of 5.4% [4] - The Zacks Rank for Reckitt Benckiser Group PLC is 1 (Strong Buy), indicating a strong potential for outperformance based on earnings estimate revisions and improving earnings outlooks [3] - The Zacks Consensus Estimate for RBGLY's full-year earnings has increased by 7.5% over the past quarter, reflecting stronger analyst sentiment and an improving earnings outlook [4] Group 2 - Reckitt Benckiser Group PLC belongs to the Soap and Cleaning Materials industry, which is currently ranked 1 in the Zacks Industry Rank [5] - The Consumer Staples group, which includes Reckitt Benckiser, is ranked 11 within the Zacks Sector Rank, which evaluates 16 different sector groups [2] - Another notable stock in the Consumer Staples sector is Reeds (REED), which has seen a significant year-to-date increase of 175.1% and has a Zacks Rank of 2 (Buy) [5][6]

Financial Data and Key Metrics Changes - Core Reckitt achieved 3.1% like-for-like net revenue growth and 0.3% volume growth, with a closer estimate of 1% when excluding the SAP pull-forward impact from the previous year [3][9] - Group like-for-like net revenue growth was reported at 1.1%, driven by the strong performance of Core Reckitt [9] - Emerging Markets saw a significant growth of 10.7%, with volume growth of 6.8% and a price/mix impact of 3.9% [10][21] Business Line Data and Key Metrics Changes - Intimate Wellness and Germ Protection categories experienced double-digit growth, particularly in China and India [10][15] - Seasonal OTC brands in Self Care declined mid-single digits due to higher retailer inventory levels at the start of the period, while VMS portfolio saw strong double-digit growth [15][19] - Essential Home reported a decline of 7% in like-for-like net revenue, attributed to a tough comparative period and SAP implementation impacts [18][21] Market Data and Key Metrics Changes - North America experienced a volume decline of 1.8% and a like-for-like net sales decline of 0.9%, with a positive price/mix of 0.9% [13] - Europe saw a 1.7% like-for-like net revenue decline, with volume down 4.7% and a price/mix increase of 3% [12] - Emerging Markets continued to show strong performance, with expectations of mid- to high-single-digit growth in Q2 and the second half of the year [22] Company Strategy and Development Direction - The company is focused on transforming Reckitt into a more efficient, world-class consumer health and hygiene company, with a sharpened focus on Powerbrands [3][24] - The Fuel for Growth program is expected to drive adjusted operating profit ahead of net revenue growth, with a target of 3% to 4% revenue growth for Core Reckitt for the year [21][23] - The planned exit from Essential Home is progressing, with the management team focused on improving performance and completing the separation process [6][7] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the ability to mitigate tariff impacts through strong gross margins and diversified supply chains [5] - Despite macroeconomic uncertainties, the company maintains its fiscal '25 guidance, expecting group like-for-like net revenue growth of 2% to 4% [21][22] - The management team is optimistic about the performance of Intimate Wellness and Germ Protection, expecting sustained strong volume growth [44][61] Other Important Information - The company has initiated a GBP 1 billion share buyback program, with GBP 815 million already repurchased [20] - The new organizational structure is functioning effectively, with a focus on operational excellence and growth [8] Q&A Session Summary Question: What drove the delta versus expectations in Europe and North America? - Management noted a steeper drop-off in seasonal demand and significant retailer destocking impacting North America, while Europe faced macro volatility affecting consumer behavior [29][30][32] Question: What gives confidence in offsetting Essential Home's negative performance in Q2? - Management highlighted the stability of the Essential Home business and expected sequential improvement in Q2, supported by promotional activities and calendar launches [34][35][61] Question: Are there any one-offs in the strong volume performance of Intimate Wellness and Germ Protection? - Management confirmed that the strong performance was due to genuine underlying demand and market share gains, with no significant one-offs [43][44] Question: What are the sell-out trends in North America and Europe? - Sell-out trends in Europe are mid-single-digit growth, while North America has seen a slowdown to low single digits, primarily due to destocking and seasonal resets [51][52][53] Question: How will the Essential Home sale impact cash returns and buyback plans? - Management clarified that there is no announced delay in the Essential Home sale process, but acknowledged that market conditions could affect the timeline [91] Question: Is destocking becoming apparent outside of OTC and VMS? - Management indicated that the most pronounced impact has been in OTC and VMS, with different retailers making varied decisions based on their market performance [95][96]

Core Viewpoint - Scott+Scott Attorneys at Law LLP is investigating Reckitt Benckiser Group PLC for potentially issuing misleading statements and failing to disclose material information to investors, which may violate federal securities laws [1] Group 1: Legal Issues and Lawsuits - Over 500 state and federal product liability lawsuits have been filed against Reckitt and Abbott Laboratories, alleging inadequate warnings regarding the risks of necrotizing enterocolitis (NEC) for premature infants consuming cow milk-based formulas [2] - A jury in St. Clair County, Illinois, awarded a $60 million verdict against Reckitt in the first NEC lawsuit to go to trial [3] - Following the verdict, Reckitt's American Depositary Receipts (ADRs) fell by $1.87, or nearly 14%, closing at $11.44 per ADR [3] - Another jury in St. Louis, Illinois, awarded $495 million in damages against Abbott in a separate NEC lawsuit, leading to a further decline in Reckitt's ADRs by $1.02, or nearly 9%, closing at $10.64 per ADR [3] Group 2: Company Background - Reckitt is a global consumer goods company based in the United Kingdom [2]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps identify stocks with strong momentum characteristics, with Reckitt Benckiser Group PLC (RBGLY) currently holding a Momentum Style Score of A [2][3] Group 2: Performance Metrics - RBGLY shares have increased by 0.88% over the past week, matching the performance of the Zacks Soap and Cleaning Materials industry [5] - Over the past quarter, RBGLY shares have risen by 11.71%, and by 17.5% over the last year, significantly outperforming the S&P 500, which has moved -4.38% and 9.82% respectively [6] Group 3: Trading Volume and Earnings Outlook - The average 20-day trading volume for RBGLY is 391,230 shares, indicating a bullish sign when combined with rising stock prices [7] - In the past two months, three earnings estimates for RBGLY have increased, raising the consensus estimate from $0.85 to $0.90, with no downward revisions [9] Group 4: Conclusion - Given the strong performance metrics and positive earnings outlook, RBGLY is rated as a 2 (Buy) stock with a Momentum Score of A, making it a promising investment option [11]

Financial Performance - Group net revenue grew 1.4%, in line with guidance of 1% to 3% growth, with Health and Hygiene growing like-for-like net revenue by 4.6% and volume by 2.1% excluding seasonal OTC [7][16] - Adjusted operating profit increased 8.6%, leading to strong EPS growth of 7.9% supported by share buyback and lower tax rate [8][9] - Free cash flow was £2.2 billion, enabling £2.7 billion returned to shareholders, up 75% year-on-year [18][43] Business Line Performance - Hygiene delivered 4.2% like-for-like growth for the year, with strong performance across powerbrands and regions [20][21] - Health achieved 2.1% like-for-like growth, driven by nonseasonal powerbrands and strong growth in China, despite a weak cold and flu season [24][25] - Nutrition saw a decline of 7.3% in like-for-like net revenue due to supply disruption from a tornado, but market share is expected to improve as supply normalizes [29][30] Market Performance - Strong growth in Europe and developing markets, particularly in China where net revenues grew double-digit [8][28] - 55% of top CMUs held or gained market share, up from 47% a year ago, indicating positive market share momentum [21][25] - North American performance was negatively impacted by seasonal OTC, but overall market share gains were noted [8][28] Company Strategy and Industry Competition - The company is focused on a sharpened Core Reckitt business, with intentions to exit Essential Home and Mead Johnson Nutrition by 2025 [10][44] - Investment in innovation and R&D is prioritized, with total CapEx of £500 million to support future growth [6][30] - The Fuel for Growth program aims for a 300 basis point reduction in fixed costs by 2027, enhancing operational efficiency [33][35] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the portfolio but acknowledged uncertainties in the macro environment affecting consumer confidence [94][139] - The guidance for 2025 is set at 3% to 4% like-for-like net revenue growth, reflecting current operating conditions [46][139] - The company expects to continue delivering EPS growth and operating margin expansion, despite potential challenges [106][107] Other Important Information - The company has simplified its organizational structure, moving from five to three layers to enhance accountability and decision-making [6][49] - The innovation pipeline remains strong, with new product launches planned across various categories [56][66] - The company is leveraging digital and generative AI to improve operational efficiency and product development [39][75] Q&A Session Summary Question: What is driving the 4% to 5% midterm guide being lower than previously communicated? - Management indicated that the decision reflects a prudent approach considering the uncertain macro environment and consumer confidence [94][96] Question: What are the expectations for gross margins in 2025? - Management does not expect further expansion of gross margins in 2025, with a focus on reinvesting savings into brand equity investment [97][98] Question: Can you clarify the outlook for operating margin and EPS growth? - Management confirmed expectations for operating margins to grow and reiterated a focus on year-on-year EPS growth [106][107] Question: What is the status of the Biofreeze brand and its future? - Management expressed confidence in Biofreeze, citing a strong innovation pipeline and plans for international expansion despite recent category slowdowns [134][136] Question: Are there any expected dis-synergies from the divestiture of Essential Home? - Management indicated that while there may be some costs associated with preparing for the divestiture, significant savings in core operations are expected to offset these impacts [120][127]

Core Viewpoint - Reckitt Benckiser Group plc (RBGLY; RBGPF) appears to have reached a low in April 2024 and is currently experiencing a rally, outperforming its peer group [1] Group 1 - The company has shown signs of recovery and growth since April 2024 [1] - Reckitt is outperforming its competitors in the market during this period [1]

Core Insights - 2024 has been challenging for shareholders of Reckitt Benckiser, with previous coverage in January rating the stock as a 'Buy' despite existing issues [1] Group 1 - The company is categorized as a British consumer staples giant, indicating its focus on essential goods [1] - The investment approach favored is long-term, buy-and-hold, particularly in stocks that can deliver sustainable high-quality earnings [2]