Q2 – PROGRESS. FULL YEAR NET REVENUE TARGET INCREASED
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Results at a glance (unaudited) |
Q2 |
% change actual exchange |
% change constant exchange |
HY |
% change actual exchange |
% change constant exchange |
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Continuing operations |
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Net Revenue |
3,027 |
+23% |
+29% |
6,138 |
+23% |
+30% |
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– Pro-forma growth1 |
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+5% |
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+4% |
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– Like-for-like growth1 |
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+4% |
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+3% |
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Operating profit – reported |
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1,286 |
+21% |
+29% |
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Operating profit – adjusted1 |
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1,448 |
+22% |
+29% |
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Net income2 – reported |
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869 |
+12% |
+20% |
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Net income2 – adjusted1 |
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993 |
+12% |
+20% |
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EPS (diluted) – reported |
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122.5 |
+12% |
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EPS (diluted) – adjusted1 |
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139.9 |
+12% |
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Total operations (including discontinued operations) |
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Net income2 – reported |
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862 |
+71% |
+84% |
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Net income2 – adjusted1 |
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993 |
+6% |
+14% |
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EPS (diluted) – reported |
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121.5 |
+71% |
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EPS (diluted) – adjusted1 |
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139.9 |
+6% |
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1 Non-GAAP measures are defined on page 2
2 Net income attributable to the owners of the parent
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Highlights · Pro-forma growth in Q2 of +5%. Growth was volume led at +3%, with +2% from price / mix. IFCN grew by +9% on a pro-forma basis, driven by strong market growth and further operational improvements. · LFL growth in Q2 of +4%, with Health +3% and Hygiene Home +4%. Growth +3% volume, +1% price/mix, reflecting the lapping of the cyber-attack impact last year. · MJN integration into our Health Business Unit (BU) is on track. Strong top line growth combined with 2018 year-to-date synergies of £55m ($75m). We remain on track to achieve our increased synergies of $300m. · RB 2.0 progressing well. Management structure in place from January 2018. Work to complete all infrastructure changes by mid-2020 remains on track. · Adjusted operating margin was 23.6%. +50bps on a pro-forma basis and a decline of -30bps on a reported basis. · The Board declares an interim dividend of 70.5p per share (2017: 66.6p), an increase of +6%. · Full year net revenue target increased from +13-14% to +14-15% driven by IFCN growth exceeding expectations. No change in operating margin expectation. |
Commenting on these results, Rakesh Kapoor, Chief Executive Officer, said:
“Delivering growth and the successful integration of MJN remain our key priorities. Q2 was a quarter of progress against both of these priorities.
MJN integration is well on track, with IFCN performance exceeding expectations and synergies being delivered. RB 2.0 is driving greater focus and energy as we operate under our new business units – Health and Hygiene Home. I am confident that as we fully realise the benefits of RB 2.0, we will deliver outperformance in both business units.
With IFCN exceeding our expectations and our base business delivering in line, we are raising our 2018 target to +14-15% total net revenue growth at constant rates (previously +13-14%), implying LFL revenue growth at the upper end of +2-3%.”