Interim report
Page 1
27 July 2021 reckitt RECKITT ( RKT.L ) BUILDING A BETTER HOUSE : ON TRACK TO DELIVER SUSTAINABLE GROWTH Q2 2021 H1 2021 Change² Change² £ m Actual Constant £ m Actual Constant Net Revenue 3,092 ( 8.2 % ) Like - for - like ( LFL ) ( 1.3 % ) ( 1.0 % ) 6,598 ( 4.5 % ) 1.5 % 1.5 % Adjusted¹ Operating Profit Operating Profit Margin Continuing EPS ( diluted ) 1,424 ( 16.0 % ) ( 9.6 % ) 21.6 % ( 290bps ) 142.6p ( 14.4 % ) Adjusted¹ ex IFCN China Net Revenue LFL Operating Profit Operating Profit Margin GAAP Operating Loss 2,960 ( 5.4 % ) 1.9 % 6,274 ( 2.7 % ) 3.6 % 2.2 % 3.7 % 1,425 ( 11.9 % ) ( 5.0 % ) 22.7 % ( 240bps ) Operating Profit Margin Continuing EPS ( diluted ) ( 1,828 ) nm ( 27.7 % ) nm ( 245.8p ) nm 1 Adjusted measures are defined on page 15. GAAP represents measures as reported under IFRS , previously termed Reported . 2 Change vs prior year presented . Constant measured on a constant exchange rate basis ( see page 16 ) All amounts £ m , unless otherwise stated Performance in H1 2021 . Excluding IFCN China , H1 LFL net revenue was up 3.7 % , and the two - year stacked LFL net revenue growth vs H1 2019 was 17.6 % . Including IFCN China the two - year stacked LFL net revenue growth vs H1 2019 was 13.4 % . • • Q2 2021 LFL net revenue ( ex IFCN China ) was up 2.2 % , as slower growth in Hygiene was partly offset by improving trends in Nutrition and our OTC brands . H1 2021 adjusted operating margin ( ex IFCN China ) was 22.7 % ( H1 2020 : 25.1 % ) . Margin including IFCN China was 21.6 % , down 290bps , as a result of planned investment , cost inflation and adverse margin mix . Net loss on a GAAP basis of £ 2.4bn from agreement to sell IFCN China ; operating loss of £ 3.0bn offset by a net tax credit of £ 0.6bn ( £ 0.9bn deferred tax credit offset by a tax charge £ 0.3bn ) . Free cash flow was £ 520m in H1 2021 , down 72.7 % due to the partial unwind of the working capital benefit in 2020 ; net debt of £ 9,084m at 30 June 2021 ; H1 2021 dividend recommended to be 73.0p , in line with H1 2020 , reflecting our policy of sustaining 2019 levels to rebuild cover to two times . 1