
06 Reckitt Annual Report and Accounts 2022 FINANCIAL STATEMENTSGOVERNANCESTRATEGIC REPORT
CHAIR’S STATEMENT CONTINUED
1. Adjusted and other non-GAAP measures, definitions
andterms are defined on page 75
Reckitt’s Purpose to protect, heal and nurture in
the relentless pursuit of a cleaner and healthier
world remains central to our future and we
remain focused on delivering our strategy.
At the same time, governance and risk
management continue to be very important
areas of focus for the Board. Alongside our
sustainability agenda, all three elements are key
to our investments and initiatives and enhance
the safety and efficacy of our products.
Talent and culture
Also key to our investments and initiatives is
our cultural agenda. For example, we have
expanded and deepened our commitments
ondiversity, equity and inclusion. More broadly,
we are building a vibrant culture founded
on purpose and governed by our Compass.
Both affect the way we operate, how we
think of ourselves and our approach to the
wider world. Progress here is increasingly
making Reckitt a place where everyone has
a real opportunity to succeed and grow.
Executive change
Reckitt saw the departure of our former CEO,
Laxman Narasimhan, in September. We were
fortunate that Nicandro Durante was willing
and ready to step in for an interim period, to
help steer the company on our continued
transformation journey, and to give the Board
time to find the right permanent successor.
As Reckitt’s longest-serving Non-Executive
Director, Nicandro already knew our company
well. This, along with his experience as a
global FMCG CEO and strong track record
of managing change, equipped him for
the task. Nicandro is ably supported by a
strong and committed leadership team.
Reckitt saw strong all-round performance
in 2022, delivering 7.6% LFL net revenue
growth
1
. Weexecuted effectively and
delivered on our priorities, whilst advancing
on our transformation journey during what
was yet another challenging year.
Last year I wrote about the company being at
an inflection point. I suggested then that the
benefits from our transformation journey would
become increasingly apparent, and they have –
inthe progress, flexibility and resilience Reckitt
has demonstrated this year, against a backdrop of
market volatility, inflation and economic disruption.
Our problem-solving, innovative culture has been
a driving force in helping us successfully navigate
both supply bottlenecks and demand spikes.
When the war in Ukraine threatened sunflower oil
supplies, we acted fast to source alternatives and
sustain production. Faced with a sudden shortage
of infant formula in the US, we swiftly ramped up
supply to help ensure babies continued to have
access to the nutrition they needed. These are
clear examples of the organisation’s ability to
manage and excel through dynamic change.
Business performance
There is also momentum in our financial
performance, and we remain on track to meet
ourmedium-term targets.
With respect to our transformation, the business
has now pivoted from focusing on foundational
changes to enjoying the benefits of those changes
already implemented. Sharper execution, a more
flexible and resilient supply chain, expanded
capacity, better customer service and continually
improving digital capabilities have all helped
to deliver strong underlying performance
across our portfolio of purpose-led brands.
The process for naming a new CEO is well
underway with assessments of both internal
andexternal candidates. We look forward to
updating shareholders and the market as soon
aswe are able.
Finally, I’d like to express my gratitude to Laxman
for his important contribution over the past three
years. Reckitt today is a stronger company with
excellent talent and well positioned for the future.
Changes to the Board
Recent appointments have refreshed and
strengthened the Board. In February 2022,
wewere pleased to welcome Alan Stewart
asa Non-Executive Director. As former CFO
atTesco, Alan brings a wealth of experience,
and his insights are already helping to inform
ourapproach to strengthening retail partnerships.
Alan was also appointed as Chair of the
Remuneration Committee, replacing Mary Harris
in that role. Mary continues to be a valued
member of the Remuneration Committee.
Following Nicandro becoming CEO, Jeremy
Darroch joined us as Senior Independent
Non-Executive Director in November and was
appointed to the Remuneration Committee
and the Nomination Committee. Formerly
Executive Chairman and Group Chief Executive
of Sky, Jeremy is an outstanding leader with
considerable expertise in the consumer retail
environment, built up over a successful career
at some of the UK’s highest-profile companies.
We are also delighted to welcome Tamara
Ingram OBE as a Non-Executive Director and
member of the Audit Committee from February
2023. With many years of experience at major
advertising firms, including as Global Chair of
Wunderman Thompson and CEO of McCann
Worldgroup in London, Tamara’s informed
perspective, on marketing and communication
issues especially, will add tremendously
to the quality of our deliberations.
In February 2020, the Board committed
to maintain the dividend at 2019 levels as
investments were made to benefit long-term
sustainable growth. The Board has updated
its dividend policy and now aims to deliver
sustainable dividend growth in future years,
subject to any significant internal or external
factors. Accordingly, the 2022 dividend has been
increased by 5% in line with this objective.
The Board of Directors recommends a final
2022 dividend of 110.3 pence, which when
added to the interim dividend of 73.0 pence,
gives afull-year dividend of 183.3 pence
(2021:174.6pence). Subject to shareholder
approval at the Annual General Meeting, this will
be paid on 24 May 2023 to shareholders on the
register at the record date of 11 April 2023.
Conclusion
In summary, Reckitt today is a well-invested,
resilient business with a clear strategy
and purpose, a strong culture, dynamic
and invested leadership and an excellent
portfolio of leading and trusted brands.
With good momentum and a strategy fit for
the times, we are well placed to both manage
upcoming challenges and respond to opportunities.
We approach the future with confidence.
Wewill continue to drive sustainable growth
and deliver on our priorities and purpose. We
know these are the right priorities and we will
continue forging our path to long-term success
for Reckitt, its shareholders and its stakeholders.