Reckitt Benckiser Group (OTCPK:RBGL.Y) Update / Briefing Transcript

Summary of Reckitt's Focus on Emerging Markets Presentation Company Overview - Company: Reckitt - Focus: Emerging Markets - Key Personnel: Chris Licht (CEO), Nitish Kapoor (President of Emerging Markets), Ryan Daley (Chief Category Growth Officer), Shannon Eisenhardt (CFO) Industry Insights - Emerging Markets: Largest geographic area for Reckitt, with significant growth opportunities - Market Dynamics: Some emerging markets have already reached advanced market status, while others are still developing Core Points and Arguments 1. Growth Potential: Reckitt has seen steady growth in emerging markets, transitioning from mid-single digit growth to high single digit growth over the last decade, with a recent surge to almost 14% growth in the last nine months [11][22][25] 2. Brand Strength: Reckitt has established strong, trusted brands in emerging markets, such as Dettol, Harpic, and Durex, which are leaders in their respective categories [14][15][21] 3. Market Penetration: The company has increased its market penetration significantly, with Dettol being used over a billion times a year and Harpic growing from GBP 500,000 in revenue in India 27 years ago to an expected GBP 250 million this year [14][17] 4. Consumer Trends: Rising incomes and new consumption habits in emerging markets are driving demand for Reckitt's products, with emerging markets expected to contribute 50% of world GDP by 2030 [27][29] 5. Category Development: Reckitt is focusing on both mature and nascent categories, with plans to expand into self-care and intimate wellness products, which are gaining traction in these markets [30][54] Additional Important Insights 1. Local Expertise: Reckitt's leadership in emerging markets has an average tenure of 21 years, providing deep local knowledge and continuity [9][10] 2. Distribution Reach: Products were available in over 10 million stores last year, with 125 million online orders shipped, indicating strong distribution capabilities [18] 3. Innovation Pipeline: Reckitt has a robust innovation pipeline ready to be deployed in emerging markets, allowing for quick adaptation to consumer needs [25][32] 4. Social Impact: The company is actively involved in societal change, such as improving hygiene practices in India, which has led to a significant increase in household penetration for Harpic [44][47] 5. Healthcare Partnerships: Reckitt is engaging with healthcare professionals and policymakers to drive awareness and education about its products, particularly in addressing antibiotic overuse [57][61] Conclusion Reckitt is well-positioned to capitalize on the growth opportunities in emerging markets through its strong brand portfolio, local expertise, and innovative strategies. The company aims to sustain high single-digit growth by leveraging rising incomes and evolving consumer habits while also contributing positively to societal health and well-being.