RBGLY changes
Pick any two versions below to diff them.
- Price
- $13.18 → $13.32(+1.1%)
- Discount
- 29.1% → 28.4%(−0.8 pts)
- Balance sheet
- Reckitt funds itself with unsecured bonds, commercial paper and bank lines that it issues centrally. It keeps the debt level of an A-rated company on purpose. At June 30, 2026, total borrowings were £10.2 billion and net debt was £9.4 billion. Net debt was 2.5 times 12-month adjusted EBITDA of £3.74 billion, up from 1.6 times at December 31, 2025. The reason is that Reckitt paid a £1.6 billion special dividend from the Essential Home sale and bought back £599 million of shares. Near-term debt is higher than usual. A $2.5 billion bond became due within one year. The company also issued £723 million of commercial paper and drew £600 million on a bank facility. But £3.9 billion of its £4.5 billion committed facilities was still undrawn. Moody's rates Reckitt A3 and S&P rates it A-, both stable. Equity was only £5.7 billion, against £15.9 billion of goodwill and intangible assets. This comes from past write-downs of Mead Johnson and large cash returns. Reckitt holds no provision for the NEC lawsuits, because after the trial wins it does not consider a payout probable. Management expects leverage to start to fall through 2027, so new cash returns depend on free cash flow. The proceeds of a Mead Johnson sale would be the fastest way to cut debt. As of 2026-06-30.
- Checkpoints
- Oct 27, 2026: Q3 2026 trading update: Core Reckitt growth. Pending. Watch: Core Reckitt like-for-like growth at or above the 4.2% of Q2, in line with 4% to 5% for the year, passes; growth back below 3% or a guidance cut fails. Mar 2027 (estimate): Full-year 2026 results: leverage and Mead Johnson. Pending. Watch: Net debt falling below 2.5 times adjusted EBITDA and progress on a Mead Johnson sale pass; higher leverage or no sale path fails.