Reckitt Benckiser: Bang and homecare brands…

Christopher Johnson: Welcome to Dividend Watch, my name is Christopher Johnson.

Dividend payer Reckitt Benckiser is in early talks with some potential buyers for its home care brands.

It is estimated that the consumer goods and household company could make more than £6 billion from sales of brands such as Airwick air freshener and Cillit Bang cleaner. Goldman Sachs is also working with Reckitt on the possible sale of its Mead Johnson infant formula brand

For Diana Radu, equity analyst at Morningstar, investors welcomed Reckitt’s plans.

She argues that the commonality between these brands is their more regional focus compared to core brands, as well as their presence in areas that are more susceptible to private label threats.

In July, Reckitt announced plans to reshape its business to focus on a portfolio of powerbands, from Gaviscon to Nurofen.

Reckitt aims to complete the disposals by the end of 2025. Reckitt Benckiser shares are currently trading at £46.49. The company pays an interim dividend of 80.40p.