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

CONSUMER STAPLES

Mgmt continued the normal line, seeing no legal risk and struggled to give any detailed colour on timings...which makes us worried for another March like surprise. Continuing to not provision for any losses will mean unch capital allocation - new buyback will be announced in July - we are not too concerned with BS squared away.


As we've noted this is not a Bayer like situation - product is a staple in hospitals/still used & medical practitioners have come out to support it...but this was all known in the first case loss. Bulk federal cases still coming up & no appeal result leaves uncertainty - curve not wide enough on that for us to have a screen cheap view.

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Mgmt continued the normal line, seeing no legal risk and struggled to give any detailed colour on timings...which makes us worried for another March like surprise. Continuing to not provision for any losses will mean unch capital allocation - new buyback will be announced in July - we are not too concerned with BS squared away.


As we've noted this is not a Bayer like situation - product is a staple in hospitals/still used & medical practitioners have come out to support it...but this was all known in the first case loss. Bulk federal cases still coming up & no appeal result leaves uncertainty - curve not wide enough on that for us to have a screen cheap view.

Keep reading...Show less