Reckitt (RKTLN; A3 Pos, A- S) {RKT LN Equity}

Firm results, Nutrition business (Enfamil a brand) firmer than consensus. Seems no change on provisioning approach, likely to get more questions on any legal updates in earnings call (8:30am London). Curve came in from wides but has underperformed on recent sell-off. Screens value on ratings - Moody's surprised us with a A3 Positive affirmation late last month but we are still weary of the tail risk on lawsuits.

• Revenue at £3.7b is in line with consensus like-for-like growth at +1.5% a beat on c-1.4%.
• Troubled Enfamil sits under nutrition (alongside Nutramigen) - revenues at £591m were down -10%, firmer than consensus -15%.* No change to guidance; LFL revenue growth of +2-4%, adj EBIT growth>rev. growth, capex 3-3.5% of sales. Next buyback programme will be announced in July - its run its 1y/£1b current programme due to end in October quickly.
• No change to provisioning; says it faces contingent liabilities & to refer to past annual report for details