Daily Archives: October 23, 2024

Reckitt on track despite struggles in US nutrition business

Reckitt Benckiser reported marginal like-for-like net revenue growth of 0.4% for the first three quarters of 2024 on Wednesday, though it faced a slight decline of 0.5% in the third quarter.The FTSE 100 consumer products giant said growth in the health and hygiene segments, which posted like-for-like increases of 2.8% for the year-to-date and 2.6% in the third quarter, was offset by challenges in the US nutrition business.
It said that business was affected by the continued recovery from a historic competitor supply issue, as well as the impact of a tornado at its Mount Vernon facility in July, resulting in a 17.4% drop in third quarter nutrition revenue.
Reported group net revenue fell by 3.8% for the year-to-date, impacted by foreign exchange headwinds of 3.9% and a small net impact from mergers and acquisitions.
Despite the challenges, the company said it maintained volume momentum in both its hygiene and health divisions, with sequential improvement in market share across both segments.
Hygiene, in particular, saw like-for-like revenue growth of 3.7% for the year-to-date, driven by innovation in brands such as Lysol and Finish.
Meanwhile, health revenue grew by 1.9% over the year thus far, bolstered by strong performances from brands like Durex, Dettol, and Nurofen, despite a weaker season for over-the-counter (OTC) brands due to challenging comparatives from last year’s cold and flu season.
Reckitt said its nutrition division had seen an 11.6% year-to-date revenue decline, but added that the recovery of inventories was reportedly better than expected.
Strategically, Reckitt said its refreshed global executive committee was now fully operational, adding that it was preparing for the rollout of a new operating model in January.
Progress on the divestment of the essential home business was advancing, with a leadership team in place and the company targeting an exit by the end of 2025.
Additionally, Reckitt’s £1bn share buyback programme was progressing, with £321m in shares repurchased as of mid-October.
The company said it remained on track to meet its full-year targets, expecting strong like-for-like revenue growth in the final quarter.
“Our third quarter delivery is in line with our guidance at the half year,” said chief executive officer Kris Licht.
“Health delivered sequential improvement in the quarter and hygiene delivered a solid quarter of growth despite a more competitive market backdrop in developed markets.
“Nutrition was impacted by the Mount Vernon tornado in July, which impacted sales to customers in the quarter, but to a lesser extent than we initially expected.”
Licht said the company’s categories were “resilient”, its brands “strong”, adding that it was now seeing a more balanced algorithm for growth.
“We are on track to deliver our net revenue and profit targets for 2024, with increased investment across our more competitive categories and markets, improving market share performance across our health and hygiene portfolios, and a normalising market environment in US nutrition.
“We are moving at pace on the execution of reshaping Reckitt through sharpening our portfolio, simplifying the organisation and improving shareholder returns.”
Reporting by Josh White for Sharecast.com.

HSBC is splitting its business. What does this mean for the major FTSE 100 bank?

Lloyds might command the highest trading volume on the FTSE 100 but HSBC (LSE: HSBA) remains the largest bank by market cap. The core of its operations, however, go far beyond the shores of Ol’ Blighty. 

Today, its Canary Wharf HQ casts an imposing shadow over London. But it started life as a far more humble outfit in Hong Kong in 1865. After branching out across Asia, it eventually incorporated in London in the 1990s and quickly became the largest bank in the UK. 

Now, after 159 years of expansion into 62 countries worldwide, it plans to split its business between East and West. 

Why was this decision made – and what does it mean for the UK economy and HSBC shareholders?

Reasons for the split

The decision to split the business was primarily driven by rising trade tensions between Asia and the West. It feels the new structure will simplify its geographical governance. However, it also noted the cost-cutting benefits of the move. It believes the restructuring will allow the two businesses to focus on their respective markets without the constraints of a single corporate structure.

“The new structure will result in a simpler, more dynamic and agile organisation as we focus on executing against our strategic priorities, which remain unchanged,” said recently appointed CEO Georges Elhedery, speaking to the BBC. 

The eastern markets division will include the Asia-Pacific region and the Middle East, while western markets will cover the UK, continental Europe and the Americas.

Pros and cons

There’s a possibility the restructuring could lead to job losses in the UK, particularly in areas where HSBC has a significant presence. This could have a negative impact on local economies and the overall labour market. A smaller presence in the UK could reduce economic activity, as the bank is a major player in the financial services sector. 

On a broader scale, this could impact consumer spending, investment and overall economic growth. Additionally, the decision to shift its focus away from the UK could be seen as a loss of prestige for the country’s financial sector. London has long been a global financial hub, and the presence of major international banks like HSBC has contributed to its reputation.

On the plus side, the split could unlock value for shareholders. It reduces exposure to global risk and challenging economic and regulatory environments. 

An uncertain future

The implications of the split for the UK economy and its shareholders are complex and uncertain. While the move could provide opportunities for growth and value creation, it also carries risks, particularly in terms of job losses and potential economic impacts. 

Following the news, the share price closed up 1% on Tuesday (22 October), bringing yearly gains above 8%. The bank maintains an attractive valuation, with a forward price-to-earnings (P/E) ratio is 7.2 and a 7.1% dividend yield.

As a shareholder, I’ll certainly be keeping a close eye on developments. New investors considering the stock should carefully assess the potential benefits and drawbacks before making any decisions.

Nova Blue Technologies Triumphs at SoGlos Business Awards

Nova Blue Technologies Triumphs at SoGlos Business Awards – Business News Today – EIN Presswire

Remington CEO Navin Raju on the Future of Business Technology

Innovative technology has shifted business operations from traditional to modern methods. In an interview with PNG Business News, Remington Group CEO Navin Raju shared his vision and stressed the necessity of adapting to these changes.

The Remington Group Board of Directors recently appointed Raju as the new CEO, recognizing his extensive experience in leadership and business development. Prior to this role, he was CEO of CPL Group PNG and held other senior positions in various companies, including Heli Nuigini Limited.

The Remington Group, formerly a key typewriter distributor in the Pacific and now a leading printer distributor in Papua New Guinea, faces new challenges. Raju mentions that the brand had an early presence in the Fiji Islands, as noted by his father. 

“It began with typewriters, and Remington was a significant business across the Pacific. My 80-year-old father noted that Remington sold typewriters in Fiji when he was young,” he said.

The Remington brand has been supplying products to PNG since 1948 and has continuously adapted its business model to keep pace with technological advancements and changing times.

“The essence of our business has remained consistent, but we are now facing a pivotal moment. Our line of business is likely to decline as society increasingly adopts paperless solutions and e-commerce.”

He stressed that Remington Group must adapt to changing market dynamics. “We aim to find new products and services that match our current offerings. My goal is to grow the business while contributing to the country’s growth for the next many more years.”

“We aim to be leaders in the print and ICT sectors as technology evolves,” Raju said.

The Remington Group is the preeminent provider of business solutions, print technology, and related services in Papua New Guinea. With an unwavering commitment to quality and local talent development, Remington has been a pivotal entity in PNG’s business sector for 76 years.

Since its inception, the Group has cultivated a comprehensive portfolio, encompassing Remington Technology, FX Business Centre PNG, Premier Business Solutions PNG, and BizPrint PNG. Its extensive national presence extends beyond Port Moresby to several key provinces, including Lae, Madang, Kokopo, Wewak, Goroka, and Mt. Hagen.

Remington’s print technology solutions furnish businesses, government offices, and organizations within PNG with superior operational platforms in business services, document solutions, and commercial printing.

During the interview, Raju detailed his journey to PNG. Originally from Fiji and having grown up in New Zealand, he arrived on a three-year contract in 2010 and has since made PNG his home over the past 14 years.

“My family and I have grown fond of this place. We feel integrated into the country and are committed to PNG,” he stated.

He emphasizing the cultural nuances in business settings. Drawing from his Fijian background, he remarked, “I understand Melanesian culture and the challenges that young Papua New Guineans face in the workforce.”

He stressed the importance of practical exposure, saying: “While theoretical knowledge is essential, providing practical experiences and exposure is crucial for success.”

Raju described the working environment in PNG as dynamic, with daily challenges emerging regularly. “It is vital to understand the social circumstances of employees; often, a missed day of work stems from deeper underlying issues impacting their lives,” he concluded.

National Content:

Raju emphasized the importance of having Papua New Guineans in management, advocating for their promotion to senior roles with the right skills. As he shared his past experiences, he noted the need for qualified candidates to prevent mismanagement.

Despite challenges like corruption, fraud, crime, and poor infrastructure in PNG, Raju remains hopeful about nurturing local talent.

“We need to invest in education and provide exposure to prepare Papua New Guineans that can effectively take on leadership roles.”

“Exposure is crucial. People may have the theoretical knowledge, but we must provide them with the practical experiences necessary to succeed,” he asserted.

On Business in PNG:

On the economic front, Raju articulated concerns regarding the business sector, particularly with respect to the availability of foreign exchange.

“Our overheads are considerably affected by the forex situation, making it challenging for us to maintain competitiveness,” he explained. He urged for enhanced government support to improve the operational environment for businesses.

As Remington Group continues to adapt to market demands, Mr. Raju stressed the need for forming partnerships that prioritize local printing over international production.

“We must deliver the right products at competitive prices to remain viable. Increasing business volume is crucial for achieving cost efficiency,” Raju said as he reaffirmed his vision, which now forms the cornerstone of the Remington Group’s objectives.

“We have been a part of PNG’s growth for the past 76 years, and this company remains committed to contributing to the nation’s development for many more years. We aim to be integral to the print and ICT environment, furthering the advancement of modern technology.”

“Our vision is to become a leader in this domain as we pursue our business endeavors. This new vision reflects our ambition to lead and contribute to the country’s growth in this sector,” he added.

PNG Business News congratulates CEO Navin Raju on his new role and expresses gratitude to the Remington Group for their ongoing dedication to providing quality services. 

Business in Fashion and Luxury Hosts Event at The Boss Store at Columbus Circle

Fordham University’s Business in Fashion and Luxury (BiFL) association recently hosted a networking event at The Boss Store at Columbus Circle near Fordham’s Lincoln Center campus. Following the event, Gabelli School of Business students had the opportunity to build their business wardrobe by exploring Hugo Boss’ three-story location. Two guest panelists were present: Robyn Carter, founder and CEO of Jump Rope Innovation, and Brian Choi, CEO of The Food Institute.
In an event managed by Nina Show, president of BiFL, and Nial Stevensen, vice president of events and communications at BiFL, Carter and Choi responded to prompts and took questions from an audience of students. When asked by Show, Choi began the conversation by reflecting on Hugo Boss’ motto of having a “#BOSSMINDSET.”
“A true boss is someone who has people who want to follow you,” said Choi. Choi, who worked in private equity and investment banking before becoming an entrepreneur, noted that passion and commitment were important to have as a boss and in the job itself.
“Life is too short to just chase a paycheck,” Choihe said. “Being a boss means you are giving back to the community, your folks, partners, and investing in the next generation. We use different sources to hone in on how the future of the food and business industry is going to evolve.”
Questions were also raised by Show about the rise of influencer marketing as a potential field of entry for Gabelli students. “Influencers are a great resource when we think about innovation, as they constantly have their finger on the pulse of what’s happening,” said Carter.
Stevensen also sparked a conversation about Gen Z and millennials’ impacts on this new field. “Gen Z wants the real story and they want it fast,” said Carter.
Show shifted the conversation to discussions on Environmental Social and Governance (ESG) and business sustainability. “Sustainability is something that is increasing in intensity over the last couple of years,” said Choi. “For-profit organizations should keep sustainability front and center, and conversations are rising across boards.”
Choi noted that, even though some companies are becoming more ethically sustainable, others are more hypocritical. “Some companies say they are sustainable, but when you look at what they’re doing, it is all talk,” said Choi. “Consumers can see through it.”
Carter described how businesses need to make their sustainable products just as good as previously trusted brands. “They have to do jobs as well as conventional businesses and give people this other opportunity,” said Carter. “This is why Native is doing so well.” Native has increasingly marketed their products that have the same benefits as traditional body and hair care products, without the dangerous chemicals.
Artificial intelligence is also a growing controversy in the business world, and Carter noted that it does have its benefits and implications. “It can’t help us get to the answer, but it can help us refine our answer,” said Carter.
The panel concluded with Choi and Carter each sharing some business challenges they faced while rising to their titles. Choi, who acquired The Food Institute in Jan. 2020, was hit by the COVID-19 pandemic almost immediately upon entering the field. “We had to figure out very quickly how we were going to make an old and stagnant print publication work in the modern age,” said Choi.
Within two months, he was able to convert his team to a fully virtual environment using Microsoft Teams. Adapting to the new technology was slightly more difficult for Carter and Jump Rope Innovation. “We thought, ‘let’s not panic,’ and if we kept our hands on the wheel, things would be fine,” she said. She retained a commitment to three principles: people, not panicking and giving to clients. “We came through that time stronger than before.”
Following the presentation, students had the opportunity to tour the Hugo Boss store and select business professional merchandise, ranging from pantsuits to shirt and tie combinations.
Several undergraduate and graduate students, including Nicholas Casula, MBA ’25, voiced their opinions on the event. “I really enjoyed the talk back with Robyn Carter and Brian Choi,” said Casula. “There was an impactful discussion on using social media influencers for research and development of new products based on emerging trends.”
“First of all, thank you to the panelists for arranging this event, I never thought I would have the opportunity to chat with an actual CEO,” said Zincheng Chen, GSB ’28. “This is the perfect week for my Ground Floor class since we just moved onto the Business Plan Project, and the panelists gave very strong feedback on how I can stand out in the final presentation.”