Reckitt Benckiser Group PLC — Call Transcript 2025

Good morning, everybody, and thank you for joining us for the Reckitt Full Year 2024 results presentation. For those of you that don't know me, I'm Nick Ashworth, and I head up investor relations here at Reckitt. So before we start, can I draw your attention to the usual disclaimers in respect of forward-looking information? Following the presentation, we'll do the usual Q&A session. We will take questions from the room first, and then followed by written questions via the webcast. For those of you who have joined online, please feel free to submit your questions via the questions tab, and that's at the bottom of the screen, and I'll read them out. If you have further questions after the event, please feel free to reach out to the IR team, and we'll be happy to help. So with that said, I will hand over to our CEO, Kris Licht, to start the presentation. Kris. Thank you, Nick, and good morning to everyone in the room and those who have dialed in. I'm joined this morning by our CFO, Shannon Eisenhardt. I'll start with an overview of our 2024 results and some of the key highlights, and then Shannon will take you through the financial performance for the year. I'll then come back and provide an update on our strategy and key priorities for 2025, focused on the sharpened core Reckitt business. After that, we'll both be happy to take your questions. 2024 was a foundational year for Reckitt, as we announced a revised strategy and the steps that we're taking to deliver it. We're making big changes, and I'm really proud of the work our team has done as we move towards becoming a world-class consumer Health and Hygiene company. We've grown the business, delivering on our ambition of driving top and bottom line growth with strong earnings and cash returns to shareholders. We've also improved our market shares, with 55% of our top CMUs holding or gaining share across both Health and Hygiene. Our innovation platforms have achieved very good results, with new products and new category creation, driving higher margin growth across our power brands. We've also increased investment, with total CapEx of GBP 500 million, reflecting continued multi-year investments in R&D and our supply chain, which will help power innovation and the future growth of the business. We've simplified the business, moving from five to three organizational layers to increase accountability and decision-making, accelerating delivery and execution. And finally, we're seeing good early benefits from our Fuel for Growth program, which is supporting increased investment in our brands to drive revenues, expand margins, and deliver sustained earnings growth. This can be seen in our 2024 financial performance, which delivered both top and bottom line growth, with strong cash returns to shareholders. Group net revenue grew 1.4%, in line with our guidance of +1% to +3% growth. While this includes the impact of the tornado in July and a slow start to the cold and flu season, Health and Hygiene grew like-for-like net revenue by 4.6% and volume by 2.1%, excluding seasonal OTC. Regionally, we saw good growth in Europe and developing markets, notably in China, where net revenues grew double-digit, while seasonal OTC had a negative impact on our North American performance. Adjusted operating profit increased 8.6%, helped by the start of our Fuel for Growth program. The initial actions to sharpen our portfolio and simplify the business enabled us to increase investment in higher growth, higher return areas. Higher operating profit led to strong EPS growth of 7.9%, which was supported by our ongoing share buyback program, as well as a lower tax rate. We delivered another year of increased cash returns, with GBP 2.7 billion returned to shareholders through our dividend and share buyback program, up 75% on the prior year. As part of our strategy update, we also set out our intention to exit both Essential Home and Mead Johnson Nutrition over time. At Essential Home, the new leadership team is now in place, and we remain on track to exit this business in 2025. As we move through the process, we will share news with you in a timely fashion. On Mead Johnson Nutrition, the team has responded well to the challenges it has faced in 2024. We continue to defend ourselves against all cases in the ongoing litigation. Our brands remain strong, led by Enfamil, the number one infant formula brand recommended by pediatricians, and Q4 Like-for-Like net revenue was plus 8.4%. We're confident that Nutrition will deliver growth in 2025. Overall, we've delivered a solid performance this year, and just as importantly, we're making good progress, laying the foundations for future growth. At the end of 2023, I set out the four strategic priorities for our business. Our progress in each of these areas over the last 12 months has not only contributed to good financial results, it has also strengthened our position for the year ahead and beyond. Shannon will give more detail on the Fuel for Growth program, and then I'll come back to talk about the progress we're making against our innovation platforms and more detail on our outlook for 2025 and beyond for Core Reckitt. Shannon, over to you. Thanks, Kris, and good morning, everyone. I'll start by taking you through our financial performance for the year before coming to our Fuel for Growth program and why we're confident in our ability to deliver a 300 basis point reduction in fixed costs by the end of 2027. I'll then turn to the new structure of the group, focusing on Core Reckitt in particular, and share our expectations for 2025. Turning first to the key group financials for 2024. Like-for-like net revenue grew 1.4% in the year, consistent with our guidance. Excluding seasonal OTC, which accounts for around 10% of group revenues and is impacted by the timing of the cold and flu season, like-for-like growth was 2.4%. Our gross margin remained above 60% and expanded 70 basis points year-on-year, driven by pricing and productivity efficiencies and a more benign environment for cost inflation. The additional impact of efficiencies from our Fuel for Growth program helped deliver a 90 basis point reduction in our fixed cost base and supported a 140 basis point expansion in our adjusted operating margin to 24.5%. This progress enabled us to increase brand equity investment by 30 basis points to 13.4% and drive EPS growth of 7.9% on an adjusted diluted basis. 2024 was another strong year for free cash flow of GBP 2.2 billion and enabled GBP 2.7 billion to be returned to our shareholders through our dividend and share buyback programs. This is consistent with our capital allocation policy of returning excess cash to shareholders while maintaining a strong balance sheet, which closed the year at two times net debt to EBITDA. Turning to volume, where we continued to see sequential improvement across the business. In Hygiene, volume trends were supported by the strong performance of our innovation platforms, in particular across Lysol and Finish. We exited the year with second-half volumes growing 2.5%. In health, volumes declined 0.4% in the second half, given the soft cold and flu season. Excluding this, volumes were up 2.7% in the second half, as we've seen broad-based growth across our power brands of Dettol, Durex, and Gaviscon, as well as double-digit growth in VMS. In nutrition, while there was volatility following the Mount Vernon tornado, volume trends improved in the second half as we were coming to the end of the market share rebasing. Moving to net revenue growth by business unit, Hygiene delivered 4.2% like-for-like growth for the year with a balanced volume and price mix growth algorithm, which is something we plan to continue into 2025. We delivered revenue growth across all of our power brands and across all of our regions in 2024, despite a more competitive environment. We're seeing positive market share momentum driven by being competitive on shelf and our successful innovation delivery. Looking at market shares, 55% of top CMUs held or gained market share, up from 47% a year ago. While not included in that 55%, it's pleasing to see Finish move into hold-gain share territory in Europe as we exited the year. As the market leader in Europe, we intend to win, and we have good momentum. Autodish remains a competitive category in the U.S., with focus on driving in-market execution. Overall, Finish grew revenue mid-single digits in the year and grew high single digits in Q4. Strong innovation has also played a big part in our market share momentum, with new launches across a number of our brands. Lysol, in particular, has been a standout performer in 2024, up high single digits as volumes turned positive. We've seen strong growth across established segments, aided by innovation with our laundry and air sanitizer launches in recent years. Moving to health, health delivered 2.1% like-for-like growth for the year. This reflects broad-based revenue growth across non-seasonal power brands, strong growth in China, and new innovations, partially offset by a weak cold and flu season in 2024. Excluding seasonal OTC, the rest of our health portfolio had strong performance, with like-for-like sales up 8% in Q4, up 5.3% for 2024, with volume growth of 2.5%. Looking at the market share data, 55% of health top CMUs either gained or held market share, which is up from 46% a year ago. You'll remember in October, we commented on the strong health share gains we were seeing in the most recent three-month results. Mucinex was a big part of this. It represents one of our largest category market CMUs and has a significant impact on our external share reporting. With a slow start to cold and flu in Q4, Mucinex moved out of gain-hold territory and is not included in the 55% I just referenced. Our year-end share reporting captures prior 12-month results by CMU. However, as we've seen the cold and flu season develop in Q1, Mucinex has moved back into gain territory. With its superior efficacy, it performs best when consumers are looking for relief. China continues to perform well, up double digits, and is now our second-largest country, behind the US. Intimate Wellness was a strong driver, up high single digits across the group, as we gained market leadership in PU condoms in China, and VMS was up 10% across the group, driven by the performance of Move Free in China. We've successfully navigated macro pressures by creating products that solve the unique needs of our Chinese consumers and finding new and innovative routes to market. Finally, our innovation pipeline across health continues to deliver, with a number of new launches across Mucinex, as well as our launch of GaviDigest across a number of European markets, which is our first move into lower gastrointestinal. We're excited to see the growth that this can deliver. Turning now to nutrition, where like-for-like net revenue declined 7.3% in the year. Given the disruption to supply from the tornado in July, we exited 2024 with our non-WIC market share at 36%. We expect that to improve through the year as supply normalizes. Given the evolving regulatory environment in U.S. nutrition, our priority is strengthening our manufacturing capabilities in North America. We have doubled our CapEx spend in nutrition over the last two years, addressing key requirements to operate and sustain the business for the future, with a focus on driving remediation, compliance, and resilience. Moving now to group adjusted operating profit. Consistent with our strategic ambition and in line with our guidance, we delivered growth ahead of net revenue at the group level as well as across each of our GBUs. Group adjusted operating profit margin growth was driven by a 70 basis point increase in gross margin from pricing and productivity efficiencies, a 90 basis point fixed cost reduction with early benefits from our Fuel for Growth program. This was partially offset by a 30 basis point increase in BEI investment as we used some of the benefits of Fuel for Growth to invest behind our brands. Adjusting for the impact of the tornado, where insurance proceeds to cover lost revenue went through fixed costs, underlying group AOP margin grew 110 basis points to 24.2%. On an IFRS basis, operating profit for the year was GBP 2.4 billion. This includes GBP 838 million of impairment charges relating to IFCN and Biofreeze. For nutrition, this reflects the significant capital investment program underway to meet evolving regulatory environments. For Biofreeze, a more challenging marketplace within topical pain relief. Turning now to Fuel for Growth in a bit more detail. As we set out in July, our target is to exit 2027 with a 300 basis point reduction in fixed costs, landing at 19% versus 22% in 2023. We're confident that we'll deliver on this ambition. We shared in July we expect to incur estimated one-off cash costs of around £1 billion through the end of 2027, and that the 19% target is inclusive of any residual costs after exiting our non-core businesses. In 2024, we've taken GBP 161 million of costs against this program and expect around GBP 500 million in 2025, with most of the balance in 2026. Today, we've delivered a net 60 basis point improvement in our operating cost base, and we expect a continued steady improvement of our cost base as we head to our 2027 target of 19%. I wanted to provide a little more color around the actions that we're taking and what's to come to reduce the cost base further. Savings will materialize across four areas: organizational simplification, a greater adoption of shared services and automation, right-sizing some historical investments, and benefits from digital and generative AI opportunities. As Kris said, we've made great progress on organizational simplification, which will enable Core Reckitt to move quicker, make faster decisions closer to our markets, and is driving increased accountability. We're also making progress on our journey across automation and shared services. Today, we have pockets of services shared across the group, for example, within finance and within HR, and we can drive increased efficiencies and greater productivity with a more holistic approach to global business services across both functions and processes. We also see upside from right-sizing legacy investments. Take our global sales team as an example. We've optimized our global and local sales teams to reduce duplication, increasing focus on priority areas, while further investing in new digital technologies to drive better operational execution. We're also investing in digital and generative AI. As a component of Fuel for Growth, this area is important to improve costs as well as driving top-line growth through enabling greater levels of collaboration and innovation, and we're already seeing results within marketing. An example of this is around product concept development, where early findings show these tools reduce development time by up to 60% while also significantly improving quality. GenAI tools will next be rolled out across our R&D function in 2025 to drive both productivity as well as product superiority. There's still a lot to do, but we have clear line of sight to 19% fixed cost base by the end of 2027. Turning to EPS, which grew ahead of net revenue at 7.9% in the year to GBP 349. This was primarily driven by our 140 basis points improvement in adjusted operating margin. Our ongoing share buyback program added GBP 0.08 per share, while a lower effective tax rate of 22.2% helped as we continue to close out historic tax positions. We do expect our adjusted ETR to be in the 25%-26% range in 2025. These increases were partially offset by the strength of sterling, our reporting currency. We delivered another strong year of free cash flow generation with a 91% conversion rate. We've increased the full-year dividend by 5%, and we continue to return excess cash to our shareholders, with GBP 1.3 billion returned through share buybacks in 2024 and total cash returned to shareholders, up 75% year-on-year. We did this while maintaining a strong balance sheet with net debt to EBITDA at two times, which is consistent with our capital allocation framework. Our capital allocation policy remains unchanged. Turning now to our new operating structure. Going forward, we'll be reporting through three segments: Core Reckitt, Essential Home, and Mead Johnson Nutrition. We use the term Core Reckitt for now to denote the future Reckitt business post-exiting Essential Home and Mead Johnson Nutrition. Within Core Reckitt, we'll report three geographic areas: emerging markets, Europe, and North America, as well as reporting like-for-like net revenue each quarter across our four categories of Self-Care, Germ Protection, Household care, and Intimate Wellness. You'll find pro forma financial information across our geographic areas and categories to aid in modeling of the new structure going forward in this morning's release. Core Reckitt has delivered 5% like-for-like growth on average over the past three years, with emerging markets in Europe above this and North America broadly flat following a period of rapid growth through COVID. Core Reckitt has the highest gross margin of the three businesses, enabling a greater BEI investment in our power brands while still delivering the highest operating profit margin. Finally, turning now to our expectations for 2025. This will be an important year for Reckitt as we continue repositioning our company. We're targeting 3%-4% like-for-like net revenue growth in Core Reckitt with a balanced delivery across half one and half two. Across our geographies, in Q1, we expect mid to high single-digit growth in emerging markets, with Europe flat. In North America, we expect low single-digit growth, partially driven by retailer destocking, and a slower-than-expected ramp-up in new capacity to meet stronger Lysol demand. We expect low single-digit like-for-like growth in both Essential Home and Mead Johnson Nutrition in 2025, with both being back-half weighted. Both of these businesses will show like-for-like declines in half one. Taking this all together results in group like-for-like growth of 2% to 4%, with Essential Home and Nutrition making this a little more second-half weighted. With our Fuel for Growth program moving into its second year, we expect to drive adjusted operating profit ahead of net revenue growth. With adjusted net finance expense of GBP 350 million-GBP 370 million and an effective tax rate of 25% to 26%, we expect to deliver another year of EPS growth. I'll now hand back to Kris to talk about our strategic priorities. Great. Thank you, Shannon. I want to turn now to the actions we're taking to reshape Reckitt through a sharper portfolio and a simpler organization. I'm confident that our strategy is transforming the business into a world-class consumer health and Hygiene company with one of the strongest growth and margin profiles in the industry. We have strong foundations with a portfolio of power brands that offer significant growth potential across the world. A year ago, I set out four priority areas for our business, areas that we've focused on through 2024. In July, I gave you an update on our portfolio value creation actions and the three principles that we've applied to our portfolio. One, a brand or a business must have a clear and credible long-term runway for growth. Two, it must have an attractive earnings model with a high gross margin to support continuous investment in growth and premiumization. And finally, a brand or a business must have enduring competitive advantages, for instance, a number one or two equity position. Core Reckitt is comprised of a sharpened portfolio of 11 power brands that make up just over 80% of our net revenue, all of which meet these principles. Our power brands sit across categories that are helping consumers improve their daily lives. With ever-increasing focus on health and well-being, now further accelerated by the broadening use of GLP-1s, consumers across the world are looking to products that protect and provide relief. They're willing to pay a premium for efficacious solutions, whether they're in China, Mexico, India, or right here in the UK. Our power brands play to these trends. Today, I want to talk in more detail about what we're doing in terms of product superiority and how we're enabling our teams to take advantage of these tailwinds to win in each of our markets. When it comes to ensuring product superiority, our goal is simple: to delight our consumers. Innovation is at the heart of everything we do at Reckitt. It keeps us relevant with consumers and enables us to grow our categories and our market shares through premiumization, through the ability to enter new markets, and by growing into new and adjacent categories. Our innovation platforms have been a significant focus of mine since I joined Reckitt. Initially, that was in developing and growing our innovation platforms in health and more recently across the wider group. We have a deep understanding of consumer demand spaces, unmet consumer needs, and category drivers. Our people know how to build and broaden iconic brands. Many of our brands are synonymous with the categories they lead: categories that are expandable, higher value, and less discretionary. As a result, we're in a far stronger position today than we were five years ago. To give you just two examples, in Durex, we're now market share leaders in polyurethane condoms in China from a standing start five years ago. And in Lysol, we've used our strong brand equity to create an entirely new category with air sanitizer. This is what I mean when I talk about innovation platforms: the potential to deliver impactful, lasting change to the business in a relatively short timeframe. And our innovation pipeline is getting stronger and stronger. Across all four categories and across all three geographic areas, we have even more exciting launches planned for this year and for 2026. So let me tell you what we're doing. In germ protection, we're bringing two of our most iconic power brands together: Lysol and Dettol. A great example of how our shared Lysol and Dettol innovation and science platforms will enable future growth is laundry sanitizer. This is now a GBP 300 million net revenue business, and it's the third largest segment within germ protection. These brands deliver trusted disinfection and provide significantly better consumer experience in fabric care, with a unique benefit of killing germs that detergents leave behind. The global expansion of our two iconic disinfection brands into new categories such as laundry sanitizer has unlocked significant growth with double-digit CAGR over the last four years. There is more to come, with significant opportunities to increase household penetration. Supported by our unique brand equity and superior science, we're expanding rapidly across key markets, including China and the U.S., to serve more sanitizer occasions with superior product solutions. Moving to Self-Care, Mucinex is known for its efficacious products and performs best when consumers need strong relief. As a result, as the U.S. cold and flu season has picked up since the start of the year, its market share performance has also turned positive. This is another key brand in our portfolio that has a great future powered by innovation. In the past 18 months, we've launched a number of innovations across our Mucinex brand, including Fast-Max Kickstart, Sinus 2-in-1 Nasal Spray, and Mighty Chews for children. We're feeling good about growing these new products in 2025, and we're looking forward to adding more innovation in this space. Turning to Intimate Wellness, which delivered high single-digit growth in 2024, led by our performance across developing markets, powered by the continued success of our innovation platforms. In 2024, as a result of sharp gains, Durex took market leadership in the polyurethane condom category in China, and at the same time, we successfully launched new hyaluronic acid condoms. The 2025 pipeline is strong. In fact, at the moment, we're rolling out a revolutionary new condom in Europe. Called Durex Intensity, it is made from nitrile, a first-to-the-world innovation, and a truly superior sensorial product that we're very excited about. Durex Intensity, coupled with the innovation strength across the rest of the Durex platform, bodes well for the future of the brand and the wider Intimate Wellness portfolio. Last, in our household care category, Finish had a good year growing mid-single digits. As I've said before, we're having great success evolving and premiumizing the Finish portfolio, with 75% of our tabs net revenue now coming from thermoform. This corresponds to over GBP 400 million of net revenue, and our focus in 2025 is to continue to expand into this segment, as well as further improve in-market execution across Europe and within key customers in the US. Shannon talked about our work using generative AI, and Finish is a great example. We're using our new tools to sift through years of past research and testing data, which is resulting in new product concepts that we're assessing, each grounded in science and consumer insights to create great products for the future. So there's a lot to look forward to with Finish in the coming years. Those are just a few examples of what we're doing with our brands and innovations. There is much more to cover. We have an embedded culture and process for sustained innovation. In May, our Chief Category Growth Officer, Ryan Djani, will host the first in a new series of regular Reckitt-focused investor seminars. He will explain what we're doing in each of our categories and show how we're working with our regional teams to deliver sustainable growth. Having great power brands is critical, but they also need a winning proposition and strong go-to-market execution in each of their markets. This is why it's so important to focus on consistent and excellent execution. As we embed our new structure, this is an area where I believe we can achieve a step change in performance. The new unified global category organization operating through the three geographic areas will allow us to address this. We will build on the success we've had with our innovation pipeline while removing the duplication of roles by country that developed within autonomous business units in our old GBU structure. Turning first to emerging markets, this is our largest and highest growth area where we see a rising middle class and significant penetration opportunities. That's reflected in our like-for-like net revenue CAGR of above 5% over the last three years, including a strong performance in 2024. We have a great team with extensive experience in the different types of trade partners and channels across these markets, and with a deep understanding of the consumers we serve and the customers we partner with. We know how to expand distribution. In India, we've expanded into high-potential rural areas, growing market coverage by around 25% in two years as we leverage Google API data to map affluence and identify incremental distribution opportunities, and in Africa, we're seeing good growth from a small base across a number of sub-Saharan countries, which promise a long runway for growth ahead. We know how to expand our categories. In China, we've increased revenues of our female Intimate Wellness brand, Intima, by 4x since 2023. We've driven Dettol expansion through 5-in-1 washing machine cleaner, resulting in over a three-times net revenue growth since 2022. And we've had success with our VMS portfolio, including Move Free. We also know how to drive home our competitive advantage. In Latin America, superior execution and strong communication to consumers and healthcare professionals behind the Strepsils brand has enabled us to gain 600 basis points of market share in 2024. And we continue to invest in R&D capabilities to drive future growth. This includes breaking ground on our new global R&D center in Shanghai, which will amplify our understanding of the Chinese consumer as we look to expand and create categories through innovation. I am confident in our ability to drive excellent growth in emerging markets. This will certainly benefit from the heightened focus that our new structure brings. Next, turning to our Europe segment, which is Core Reckitt's second biggest area and delivered good growth of 3.3% in 2024. We have a distinct competitive edge with most of our brands all holding number one and number two positions, spanning both OTC, consumer Health, and Hygiene. As a result, we're particularly well placed to meet the growing demand for self-care as healthcare systems come under increasing pressure. We're using data and technology to further improve our in-market execution. In the past 12 months, our R&D teams have been using proprietary GenAI tools that take real-time consumer feedback into account country by country to better understand the success of our new product launches and apply these learnings to other markets. We've also deployed a new CRM tool for European pharmacies, offering advanced detailing capabilities and AI-driven assortment optimization, and we're driving sustained category leadership across channels. Our discounter teams have helped build differentiated product ranges, enabling us to gain share in this high-growth channel. And we're using our partnership with Dragonfly AI to predict the likelihood of our product images standing out on Amazon and other e-commerce platforms. Finally, North America, which accounted for 26% of Core Reckitt revenues in 2024. We see so much opportunity across this area, but I don't believe we're yet executing at our full potential. We have work to do to leverage our proven track record of creating and building iconic power brands and winning with our customers. We're investing in supply chain resilience for future growth. This includes the creation of a brand new OTC manufacturing site in Wilson, North Carolina, as well as material upgrades to our St. Peters factory that will enable increased production of our Lysol products. We're accelerating growth in key categories by addressing unmet needs by broadening the shoulders of our iconic brands. An example being Lysol, a predominantly North American brand, which had a strong growth year in 2024, taking share powered by the success of our innovation platforms. It has successfully moved from being a surface care brand to a known category creator, first with laundry sanitizer starting in 2017, and then Lysol Air Sanitizer starting in 2023. Since the launch of Lysol Air Sanitizer, we've seen strong momentum driven by two key factors. First, positive consumer reception reflected in healthy repeat rates. We now hold the second highest ranking SKU in dollars in the instant action category. Consumers see the value of Lysol Air Sanitizer not only for sanitizing the air, but also for effectively addressing odors, a major need in the air care category. This gives us a long runway for growth, with household penetration reaching 4% by year-end. Second, best-in-class execution. We have doubled our range on shelf in key retailers, unlocked off-shelf location displays, and secured twin packs and seasonal promo for early 2025. As a result, Lysol Air Sanitizer accounted for over 20% of total category growth in 2024, a clear demonstration of how Reckitt's innovation and execution can drive market leadership. There is a lot to do as we move through 2025 and beyond, but the future is an exciting one, which leads me to guidance starting with 2025. As Shannon said, this will be an important year for Reckitt as we execute the second year of our strategic plan. We are targeting 3%-4% net revenue like-for-like growth in Core Reckitt. With our Fuel for Growth program moving into the second year, we expect group-adjusted operating profit to continue to grow ahead of net revenue. This will deliver another year of EPS growth. Looking out beyond 2025, we have the portfolio, the geographic footprint, and the execution capabilities for Core Reckitt to consistently deliver four to five% like-for-like growth from 2026. We will look to achieve this while consistently delivering annual EPS growth and creating value for shareholders. In 2024, we set out our strategy, and we have made a good start. Our progress over the last 12 months has not only contributed to solid financial results; it has also strengthened our position for the year ahead and beyond. If you leave with only one takeaway today, it should be this: the work to fundamentally reposition Reckitt is well underway, and we're focused on our portfolio of outstanding power brands to drive continued top and bottom line growth. Thank you for listening. Shannon and I will now be happy to take your questions. Hey, guys. Rashad Kawan from Morgan Stanley. Thanks for the presentation. A couple for me, please. First, on the four-to-five midterm guide, obviously running a little lower than what you guys have communicated over the past few months. What's driving the thought process there? Is there anything structural that's changed over the last couple of months? Is there an element of conservatism there? And then the second part, just on the building blocks to margin for 2025. If I think about gross margins being up strongly in 2024, what's the expectation for 2025? Presumably, some BEI spend will be reinvested from whatever savings you generate. So how do you think about the moving parts there? Thank you. Okay, sounds good. I'll take number one. Maybe Shannon, you want to take two? Perfect. Yeah, so good question. Look, I said at the half year last year that the medium-term outlook for the Core Reckitt portfolio was sort of a 5% growth rate. Now, obviously, when we get to guide, as we are today, we like to provide a range. We thought carefully about this, and we're obviously seeing a somewhat uncertain macro environment. So even though we're quite confident in our portfolio, as you can tell, we have competitive momentum, we have a strong innovation pipeline, our innovation is working in the market. Even though we have that confidence, we thought it would be prudent to take into account that the external environment is uncertain, and there are certain headwinds in some of our markets that we see in terms of consumer confidence. So let's say it's what we would like to think of as a prudent guide. We know that our portfolio can deliver at the 5% like-for-like growth level, and we know that in a great year, it could do better than that. We have done better than that historically sometimes when everything comes together. But we wanted to set a guide here that we feel very confident about. And obviously, if we do exceed it, I think that'll be a positive thing for everyone and a good beat. So we have every intention of trying to do that. But as we guide today, we thought this was a prudent guide. Great. So on your questions around the building blocks around operating margin and how to think about that for 2025, I'd start with gross margins, which did expand in 2024. As we've discussed before, we have industry-leading gross margins. I'm not looking to drive further expansion of our gross margins in 2025. And so then, if you think through the other elements feeding into operating margin, the fixed cost program that we've talked about, we've called out 300 basis points of improvement. We delivered an underlying 60 basis points in 2024. I think the delivery of the remainder of that would be spread in a somewhat linear fashion over the coming three years. And then I would expect, very similar to what we did in 2024, a portion of that we'll want to reinvest back into our BEI to really ensure we're driving top-line growth in a sustainable way. Then there'll be a portion that falls through, and that will drive the operating margin expansion. Thank you. Chris Pitcher from Redburn Atlantic. I mean, following up on the medium term, can you just explain to us what you're trying to tell us in terms of the outlook for operating margin? Because you've not made an explicit comment, well, as you did for this year. You've not said EPS growth above sales. Can you confirm that? And then specific to the medium term, I appreciate it's prudent, but you've effectively made it harder to hit by narrowing the range. Are you telling us you're incredibly confident to four to five, and therefore three would be disappointing in spite of this complicated and disrupted operating environment? Thank you. Yes, I mean, we were setting a medium-term guide. I don't expect the current volatility to be a permanent feature. I hope not. And we think it's a prudent guide. We feel quite confident that we can hit it. And then, like I said before, we could have widened the range, but then I think I'm not sure we would gain anything. Now we have given ourselves a guide that we feel comfortable with. And if we beat it, I think it's a good thing, right? It's going to be a positive for everyone. Do you want to talk about margin guidance? Any guess? Sure. So your questions were both, sorry, there you are, Chris, around the medium-term guide on operating margin as well as EPS? Yes. I mean, as you say, you've given no clarity on whether you expect margins to grow or indeed EPS to grow ahead of sales. If you could just confirm that. Sure. So we do expect operating margins to grow. And I think we've reiterated, or we've intended to reiterate, that we'll be growing profits ahead of revenue. And so we're standing by that long-term financial model, which would then have our operating margins expanding over time. From an EPS standpoint, we're very focused on EPS growth year-on-year. I wouldn't want to guide it to whether it will be ahead of or behind of revenue. But for us, we realize that that's an element of shareholder value creation that's been missing over the past three to five years. And so we intend to deliver that on an annual basis moving forward. And just to clarify, that would be the dilution from future transactions that is causing that position. Well, so the guide that we provided just to ensure clarity for 2025 assumes that we have all three operating segments for the full course of the year. And so that's just to make sure we're all operating off the same page for 2025. As you think moving forward, as we execute against an Essential Home transaction, obviously that would bring with it some level of dilution. But we've also been clear that we have a fixed cost program underway that we expect to hit the 19% regardless of, or in the event of, even as we dispose of those businesses. So we have a number of levers around EPS where we feel confident over the long term of being able to deliver sustainable EPS growth. Thank you. Very clear. Thank you. Hello. David Hayes from Jefferies. Two from me. Just looking back at the 2024, A&P or BEI spent up 30 basis points, but obviously huge gross margin development and the cost saving. So to your point about the outlook strategically, one of the priorities and principles is reinvestment. Was there a kind of a decision not to reinvest as much back in the second half? And is that something—was there a reason for that? And is that something that kind of accelerates more for reasons as well as you're going to 2026, 2025 even? And then secondly, just in terms of the guidance, there's no mention of dissynergies, which I guess you can't really forecast at the moment until you know when and how, etc., the business gets divested in terms of Essential Home. But is the guidance assuming no dissynergy? And I guess when I'm asking that, we assume you're getting it ready to be standalone almost day one. So will you be duplicating costs to be ready to do that towards the end of the year? And is there an element of that in the guidance, or will we get that to offset? And we'll get more information on that as you kind of go through the process. And have you got some kind of guide as to what that dissynergy might look like through the year? Thank you. So let me start on BEI. So good question. I think we definitely invested more in our business last year. We always assess these investment opportunities on a case-by-case basis. So it's not a sort of a broad sweeping decision. It's, does this investment make sense? Should we accelerate this brand? Do we have innovation or new news that we want to invest behind to reach more consumers? And we arrived at the conclusions that we arrived at, and I feel good about that. We'd like to see a steady increase in our BEI investment, but I would think of it as steady, and it's not a place where we want to overinvest necessarily and have wasteful spending. We've seen examples of that in our industry, and it doesn't necessarily drive results, so I think we will be smart about it. We'll invest in particular behind innovation, and when we're creating new categories like air sanitizer, where we have real new news to share to educate consumers, we're going to invest behind that. So I think the good news is with the plan that we have, the guide that we have, and the Fuel for Growth program, which is successfully delivering in its first year, we have the room to invest, so we clearly have a good amount of room to invest. And we think that's a good place to be for us as management to judge growth opportunities that we can invest behind. So I would expect it to increase. The other offset is we have quite a good productivity program that also applies to marketing. And so we also generate savings that offset some of those increases in the year. So sometimes we actually deploy more working spend than you can see in that number. On the separations, look, we're working on this at the moment. We've made very good progress. I would say the process of setting them up is on track. And I've been pleased with the work that the new leadership teams have done. We are sizing the financial impacts. We're also trying to be smart about not setting up very redundant structures for no reason until they're needed. But obviously, we want to get ahead of any eventual day one where the company has to be fully self-sufficient. So we're working through that at a great level of detail. And we are costing those impacts. Our guide, as Shannon said, assumed that we effectively operate these segments through 2025, just because even if there is a transaction, obviously it takes time for a transaction to close. And then the intention is that when we have a deal to announce, a signed deal on Essential Home, we'll clearly provide more quantitative understanding of dissynergies. But you wouldn't see dissynergies this year then, based on at the moment, I guess, the timing and the, yeah, I mean, obviously it depends on deal timing and how that comes together. But what I would tell you is we're driving such significant savings in the Core that I don't expect that to be a big impact. Thank you so much. Hi there, Jeremy Fialko, HSBC. So a couple of questions for me. So first of all, just on the 2025 guide for the Core Reckitt business, can you run through some of the specific factors that lead to that being below your medium-term guide? And then the second point would be on Biofreeze. So you've now taken two write-downs on that business, if I remember correctly. I think at the time this looked a very exciting acquisition. It took you into an area of pain that you were not competing in. The brand looked like it had good equity, a very good growth track record. So can you talk about, okay, why this acquisition hasn't worked out as you had expected it to? And also then what you think you can do with the brand given where it is today and what contribution topical pain can make to your self-care business? Thanks. Sure. Why don't I start on Biofreeze and then maybe hand to you for the factors in the guide? So look, I will tell you, first of all, we're very happy that we have Biofreeze in the portfolio. Biofreeze is a brand that fits our criteria for our portfolio. It's a strong equity. It's a category that grew very fast for a long time. Really what we're facing is a pretty broad-based category issue in topical pain in the U.S. that emerged when we went through this historic COGS spike that we've been through and the consumer came under a lot of pressure. It is true that topical pain is slightly more discretionary as a category, so when consumers are under historic pressure, which they've been over the past few years, they do change their consumption habits. The category slowed significantly during that time. Household penetration is low. These products are highly efficacious, including our Biofreeze products. Biofreeze is a leader in the category. I fully expect the category to return to strong growth as we get to a more normal environment as the consumer recovers from this cost of living crisis and that period of time. We have a strong innovation pipeline behind Biofreeze that I'm very excited about. We are also rolling out Biofreeze in other markets internationally, and we will continue to do that. We have other strategic options to expand the brand that we might share with you at a later date, so all in all, we have a good growth agenda for Biofreeze, but we did run into a significant category slowdown and headwind from the cost of living crisis. Biofreeze is a brand that really thrives on display, and retailers pivoted away from putting this category on display during that time, and we're seeing signs that that's coming back. So while I would have loved to not go through that slowdown, there's nothing structural about the category or Biofreeze that we're worried about. Okay. On the guidance for 2025, guiding Core Reckitt at 3%-4%. Look, our guide for 2025 reflects our current view of the operating environment, which I would say has a level of uncertainty within it. When we look at tariffs, when we look at consumer confidence, when we look at store traffic, when we look at inflation, there's just a level of uncertainty and volatility that exists across North America and across the globe today that we don't see that or hope that that doesn't persist ongoing. And so that's not necessarily as reflected in the midterm guidance, but for 2025, we thought it was prudent to provide a guide that reflects the current operating environment and provide a guide that we're confident in our ability to deliver. Yes, good morning. Harold Thompson from Chelverton. And just a couple of questions. Kris, you kind of indicated the process of separation was well on the way and kind of getting ready if something comes along. Is there anything you can maybe say about the actual sale process or the interest you're getting or anything like that? I realize you can't say very much, but just anything you can say would be of help. And then, of course, Shannon, you said that EPS delivery was an important part of your journey, something that's been missing in recent years. I think you've been very clear that Essential Home sold effectively for cash. The plan is to return everything to shareholders through buybacks. I just want to make sure that commitment is still there. You're not going to a tangent to acquire growth through M&A again. Good questions. So on the process, I'd love to be able to say more, but I think you understand that where we are in the process doesn't lend itself for me to be overly specific. What I can say is the overall process is on track. And I'm feeling good about it. And that's about it. When we have news to share in terms of something concrete, we will, of course, provide full transparency and visibility and share what we think the financial impacts of it is. Then the messaging around proceeds from Essential Home remains very consistent. So we expect to return all excess cash from that transaction to our shareholders. We've not yet decided whether that will happen through a share buyback or whether that would happen through a special dividend. So we'll have more to share on that when we get to the point of announcing a transaction. As far as your question on M&A, I think we would agree our plates are quite full. So the intention is to return that cash to shareholders. Very clear. Thank you. James Edwardes Jones from RBC. Just following up on Harold's point, are you double running a spinoff process in case the sale you can't dispose to a third party for an acceptable price? And could you say a bit about tariffs, what the potential impact on your business would be? Yeah, I think I can address both. So we're going to do the right thing for Reckitt shareholders, and we're looking at everything under the sun to do that. Okay, so we're open-minded and quite rational about that. At the same time, as I indicated before, we thought there'd be good interest in these assets, and so far there is. So that's probably all I'll say on the first one. On tariffs, it is a very dynamic picture, as I know you know. And therefore, it's hard to be sort of equivocal about anything. We have been looking at it, and we have been looking at scenarios from what might happen and what impact it would have on our business. The good news is it's not a significant impact to our business. Yes, there will be some, but we source most of our products from the regions we operate in. I think you saw some of the metrics on the slides probably about that. And we're making investments to further localize production. And frankly, we were doing that before the tariffs came because it's just a good thing for the business. It's a good business idea. We will look at these tariffs, whatever they turn out to be, and we will have a number of levers to mitigate the impact. We are not as exposed as many other industries and probably other companies. And we have quite a good set of levers to pull. We talked about our gross margins, how high they are, how much productivity we have flowing through our P&L. And obviously, we have pricing power, as we've shown over the past years, if it comes to that. But I think it's premature for us to say anything quantitative because it changes every day. Thanks very much. It's Iain Simpson at Barclays. Just a couple of phasing questions, if I could, in terms of how we think about 2025. So you talked about Essential Home being low single digit for the year, but being negative in H1. Could you just touch on why Essential Home will be negative in H1, please? And then secondly, when we think about the margin phasing for 2025, I'm mindful that you seem to have restated the H1 2024 margin. I think that's gone up a little bit. I was just wondering how we should think about the, you've said core margin expansion for 2025, but I was just wondering any guide you give us as to the phasing of that. Thanks very much. Sure. So first question on Essential Home, why would it be negative like-for-like in the front half? There's really two significant drivers of that. The first, Iain, that I'd share is we're lapping a really strong pest season from a year ago. And so it's a bit of a comp in what we're facing there. The second would be, and we talked about it quite a bit last year, air care in the U.S. continues to be a very competitive marketplace for us. And so that continues to be an area where we're working hard to compete, but where it's a tough battle right now for that business. As far as margin phasing, we don't provide guidance on operating margin by half. And so I'd sort of leave you to thinking through the guidance we've provided on how top line phases across the year for the group. It will be a little bit back half weighted. For Core Reckitt, we expect top line growth to be balanced across half one and half two. Okay, thanks. Thank you. Morning, Tom Sykes from Deutsche. Excuse me. Firstly, just on the margin improvement, how much of the margin improvement did come from Essential Home, particularly in the second half of the year, please? And then just on transactional effects at the end of the year, post the election, there was obviously a very strong move in the dollar. You import a lot into the U.S. Perhaps it was slightly surprising how much you do import into the U.S. You gave that interview that said it was 40%, I think, of product sold. So I just wonder, how much do you hedge that transactional exposure? And what was that hedging year-on-year? And how should we think about transactional effects gains going into 2025, please? You don't want to take the transactional effects hedging question. I'll be happy to take that. I assumed you were. Okay, so first question, Essential Home, how much margin expansion in 2024 is your question was driven by Essential Home. I think we'd actually have to circle back to you on that because we weren't operating the business in 2024 through a lens of Essential Home. So I honestly don't top of mind have an answer for you on that. And I'm probably going to take a follow-up on the transactional effects hedging of imports into the U.S., as I don't have an answer for you top of mind on that, but I think IR can follow up with you. Apologies. Thanks. It's Callum Elliott at Bernstein. I just wanted to come back to BEI because I think you said, Kris, that you want a steady increase, but the 30 basis points increase in fiscal 2024, I think you were plus 100 basis points in the first half. So I think it implies down 50 basis points, something like that in the second half of the year, which is obviously the opposite of a steady increase. So maybe you can just flesh out for us, should we just be thinking about this as a phasing thing into H? Absolutely. Or should we be thinking about it as some kind of steer as to the speed of the reinvestment over the medium term? No, so when I say steady increase, I'm talking about annual steady increases. So if you're modeling our BEI percentage year over year, I would model a steady increase. But like I said before, it's not steady as in steady every month because we invest behind big moments when we have a big launch, when we have new news to share, a new claim, whatever, a reset of a shelf, that's when we invest. So actually, oftentimes we make big investments in BEI in the spring because we're launching new innovation across markets. So I wouldn't interpret anything into that. Our commitment to invest in BEI is high. And we have areas where we can invest. And like I said, we have innovation where we can invest behind it. So I intend for that to be a steady increase year-on-year, but not like a linear steady month-by-month increase because that wouldn't be rational. Thanks. And I have a follow-up for Shannon on free cash flow. You spoke very positively about the free cash flow, Shannon, but I think it's actually down year-on-year. And conversion, while still strong in the kind of low 90s, I reckon it used to be exceptional, and low 90s is maybe sort of more in keeping with where some of your other CPG peers are. So my question is, should we interpret the positive tone around free cash flow despite the negative year-on-year growth as you're happy with 90% free cash flow conversion, and that's where Reckitt is going forwards? Or can we expect it to get back to 100% plus? I don't know that I'm ready to commit that we'll get back to 100% plus. What I'd say is we continue to have a high level of focus on free cash flow across management, across Kris and myself. We believe it's actually a unique characteristic of Reckitt, and we want to continue to drive that. And so I would expect that it would get back up into the mid-90s over time. And so I wouldn't take this as a change in strategy or some sort of permanent change in direction. Yeah, thank you. Yeah, I've just got one follow-up. I mean, when you showed the slide with how your portfolio of key brands looks like, it looks very impressive. There's, of course, a large element of them which are kind of OTC related. And in the past, it was always argued that rolling out OTC brands kind of more globally and filling up the white spaces was quite a slow and arduous process because of all the regulatory barriers and so on and so forth. And yet, when I look at the presentation on some of the innovations, they also look quite exciting. So how easy will it be to leverage effectively your new portfolio or slim down portfolio to deliver that growth? Because it's actually got constraints, regulatory constraints, to be able to roll that out. So how does that balance out? Yeah, that's a great question. Expanding OTC across the world is a top two priority for the company. This is one of the most attractive things that we can do, but also expanding our OTC portfolios within countries where we already have a trademark and registration where it's easier. The good news is we know how to do this. If you look at some of the brands in our portfolio like Strepsils and Nurofen and Gaviscon, they have realized very strong growth over the past five, 10 years even because we've been able to register them, get them approved, launch the brands in a series of markets around the world. I don't know if it's arduous. It's time-consuming. It is. And there's a fair amount of work and investment in regulatory and other activities, sometimes clinicals that you have to go through in order to go through that process. But what's nice about the OTC business, and it's a little bit different than most other businesses in the consumer sector, is once you're there and once you have the registration and once you've built a trusted brand, it's a real moat. And so what's great about the OTC business is those investments, you have to make them with a long-term view, but if you make them smartly, considered, and sustained, then you get some very good returns in the end. And that's how we're running the OTC business. So this is a major priority for us. Now, it doesn't always involve stretching brands because actually the premium of having global brands in OTC is not very high. What matters is did you have a strong brand in the local market and that the medical professionals and pharmacies understand the benefit of the product and recommend it. So that's how I would look at it. So it's a major priority for us. It does take time, but we're good at it. Hi, that's right. A follow-up now. Apologies for all the medium-term stuff at the start. In terms of the structure of the new Reckitt business, when the strategy was set, when you first joined, Kris, part of the investment was to build out your distribution network, build out sales, target new markets. The pandemic gave you more funds to do that. The growth in brands like Lysol, etc., seemed to be more about the category extension within existing markets. How do you see the business now geographically for the sales force you've got in terms of driving Finish, Lysol, Dettol into new markets? Is that delivering as hoped? Yeah, so we have seen really significant distribution gains in a number of markets over that timeframe. We've also fundamentally elevated our relationships with our most important retail partners during that timeframe. And all of that is something that stands us in good stead and has benefited the business. As I look ahead from where we sit today, I would say the biggest distribution opportunities we have by far is in emerging markets. And there is a long, decade-long runway for growth in terms of driving that distribution, driving out a broader assortment, reaching more outlets. In places like Africa, we're just getting started, but it actually is a very exciting opportunity for us. Latin America, we still have significant opportunity. And in India, even though India is one of our strongest businesses where we have expanded coverage for years, we still have the expansion opportunities that I discussed today. Increasingly, though, the expansion also happens on the screen. So it's not just about expanding physical stores. And I would say in Europe and in North America, our focus is very much to win on the screen. And not just with Amazon, with everyone, right? Every one of our large retailers have become omnichannel retailers pretty much. And some of them are extremely good at it. And so right now, we're also very focused on winning on the screen with our big retailers. All the big US retailers are quite sophisticated at this now, and it's a real focus for us. And that'll also happen in Europe over time. It is starting to happen a little slower than the US. So that's a major distribution opportunity in developed markets. But distribution remains a really big pillar of our growth, and it's a really nice way to drive volume growth and household penetration, and we'll remain focused on it. A couple of follow-ups for me as well if I can. So firstly, just on the cost saving, can you talk a bit about the reaction internally to that? If you look at some of the postings on various websites, there is talk about distracting and disconcertingness. I mean, is that something that you worry gets more of a theme as you try and do even more cost saving? And the other thing you talked about, headcount reduction within the savings. Can you kind of give us a sense of headcount reduction to date and what the actual plan is for headcount over the sort of the whole three-year period? And then just coming back to the guidance again, sorry, on 2025, this modest or cautious, prudent guide of being slightly below the midterm for the reasons you mentioned. I guess you've got an easy comp, you would think, in the fourth quarter against the weak cold and flu season. And at the moment, the data shows that everyone in America seems to be sick suddenly, having been not sick through the fourth quarter. So just what is the assumption in terms of the cold-flu dynamic within that three to four? Do you expect a normalized season or do you think weaker gain just in case and it could be upside? Thanks. Okay, so three here. Let's start with the maybe last one. Look, you have to remember that as seasons go, we actually ship the bulk of volumes just like our peers. That's how the industry works. We ship in the fall. So the initial shipments happen in the fall, and they happen to plan. We tend to ship to an average season unless retailers want to stock up, and then they make those choices. And that's what happened in the fall. What didn't happen in the fall is replenishment orders because there was not much of a season, as you said. It was unseasonably warm in the U.S. for most of Q4, and people simply weren't getting sick at a normal rate. And that has changed. And so in Q1, the peak has shifted into Q1. That's why our seasonal OTC business did what it did, just like it did with our peers. And yes, then you would expect the retailers would sell through that inventory, and then they judge when they want to replenish. And that's what we're going to see here in this month, and we'll know more about that. In terms of our guide, therefore, I mean, yes, you would say from a sellout standpoint, from a POS standpoint, there's probably a benign lap in Q4, but it doesn't translate directly to shipments for the reasons that I just talked about. In terms of headcount, we haven't shared any numbers in part because we don't have any final numbers because we're going through an extended process of redesigning, simplifying, and optimizing our business. We have quantified those benefits in the numbers that Shannon has shared repeatedly on Fuel for Growth. And so that gives you a sense of magnitude. This is not small. What I can give you is a sense of magnitudes at certain layers of the organization where we have a lot of visibility now to what we're doing. We have simplified our management structure significantly. And as I talked about, we've gone from five to three layers of management in the business, which is a real benefit. And by the way, our people feel very good about this. Our people were tired of the complexity of the prior model and could see that there were too many leaders in the business. And it was actually clouding to some extent clear and fast decision-making and accountability. So that initiative enjoys broad-based support, and we have reduced our senior leadership ranks something like 15%-20% already, and we're not done. And that's because we want to simplify our company. We want to simplify the business, and we think it makes it better. Now, in terms of can it be distracting, I think we had a pretty open conversation in the summer of last year about this. Of course, when you undertake large-scale change, there's always the possibility of some distraction, and that's a fact of these kinds of programs. But there's a way to do it where you minimize that and where you have early warning systems and you detect it. And so we have put in place significant structures to oversee the change and enable the change and track the change. And we measure that at a fairly granular level and quite frequently. And we and the group executive meet on it weekly. So we're pretty close to what's going on, and we're watching it. I wouldn't tell you that there's not something that could go wrong somewhere that I cannot guarantee, but what I can say is that we will mitigate it, whatever it is. And so far, that has not been the case. I'm actually very pleased to see the kind of market share momentum we have, the kind of execution I'm seeing in the business, how Fuel for Growth is happening, how our innovation is paying off. That doesn't indicate to me that we have a problem executing while we're doing this, but it is a challenge. And so I think it's a very fair question. Did I miss answering any of your questions? Okay. Okay. There are a few online, and unsurprisingly, some of them are quite long. Who would have thought self-select analysts want to ask long questions? Right. So there's a few on guidance. I mean, I've not seen anything which is different to, I think, what's been asked already. So I'm planning on parking those for now, and we can follow up if people want. So Karel Zoete from Kepler Cheuvreux, I'm asking around some of these. For Hygiene, you mentioned to see balanced volume and price mix for 2025. What's the outlook for the entire company? And then white spaces appear to be a big priority for several power brands. What are the platforms that have the largest potential over the next few years? And then just one on the transactions from a production supply chain point of view, how is the separation of the home care business proceeding? Do you want me to do price mix? Sure. Okay. As I think about the growth algorithm that we should be seeing moving forward, I would say my expectation is that it will be pretty balanced. And so what you've seen is coming out of 2022, where our top-line growth was very driven by pricing. And I think we all know the history and the reasons why. As we moved through 2023, and as we showed on one of those slides today, moving through 2024, we've sequentially seen improvement across both Health and Hygiene over those two years and gotten to where we're exiting 2024 with a pretty balanced algorithm. When I think about our business going forward, I would expect that year in and year out, we should have a point or two of our growth that's coming from pricing as we price with innovation and as we take strategic pricing in markets and brands where needed. I think we would have a point or two of growth that should be coming from unit volume growth because that's a foundational element of healthy top-line growth. And then I think we should see some top spend that comes through mix year in and year out as we innovate and premiumize across our brands. Yeah, I think there was a question about Essential Home manufacturing separation. Did I hear that right? Supply chain separation? Yeah. Yes, I would say the same thing. We have very capable teams working on this separation at the moment, and they have been working for some time. And that work is progressing well. And I'm very pleased with the work that they've done. And so there's nothing in that work that tells me that there's going to be any roadblocks there or anything. So that's on track. Perfect. Thank you. White space. White space, yeah, of course. White space. White space from a category or geography standpoint? It was across the platform, so just wonderful. Oh, yeah. Well, I mean, the good news is, as I went through each of our core categories, you can see that these big innovation platforms that we're investing behind are pervasive. It's not one brand, one country. It is a broad-based pipeline that we have that we're investing behind. And when we land a successful platform like we did in laundry sanitizer and air sanitizer, polyurethane condoms, and a number of others, when we land one of those, we continue to invest behind it. It doesn't go anywhere. It just compounds. And so that's been our experience. And so therefore, the category priorities that I talked about today are the priorities that we're going to focus on, and they have significant runway for growth. Perfect. Then I've got a couple from Guillaume at UBS. So one is a clarification on your guidance for operating profit. Is the starting point 24.5, or is it 24.2? So highlighting Mount Vernon. Then, secondly, on Mead Johnson, you expect low single-digit LFL this year, notwithstanding a favorable comp in Q3 and ambition to regain some market share in non-WIC. What are the main factors that we need to think about as we go through the year for Mead Johnson? Okay. Do you want me to do both those? Okay. For operating profit, the starting point should be the 24.2. We're trying to be clear and transparent around what were the benefits that we saw as we had insurance proceeds related to the Mount Vernon tornado and the nutrition business flow through the P&L this year. We'd shared at the half-year the guidance that that was our expectation and that our teams were working hard to get the full proceeds within the fiscal year so that this doesn't become a cross-year dynamic. So 24.2 would be the answer for the first question. On the Mead Johnson question, low single-digit growth for the year, we expect negative like-for-like in the front half, growth in the back half. There are a few different dynamics that are driving why we would see negative like-for-like for Mead Johnson in the front half. And I'll acknowledge, and we discuss it regularly, it is a complex business because of some of the factors that we've been dealing with. And so there are really three drivers, I think, about that are impacting nutrition's top line in the front half. The first would be continued impact from the tornado. And so we discussed at the half-year and at Q3 the fact that there were some supply gaps because of the tornado. In a business like nutrition, when you do have periods of time that you have supply gaps, you think about it as losing a cohort of babies. And so I shared the fact that our market share is at the 36%. We fully expect that to build back over the course of the year, but that's a process that takes a little bit of time in a business like infant nutrition. The second would be last year in the front half, we discussed the fact that private label infant nutrition was having supply challenges. And so we were seeing tailwinds and benefits from that in our front-half results, and that seems to have been resolved. So that's now something that we're comping in the front half of this year. And then the other comp issue is really last year in the front half, we were refilling the pipe around Nutramigen coming off of that voluntary recall. And so that's another comp that you have to think about when you look at front-half growth rates versus year ago and versus back-half growth for this year. Perfect. All right. I think we're down to the last one. So just to say, so Victoria Petrova from Bank of America asked on guidance. So Reckitt, I think we've touched on that. Likewise, Jeff Stent from BNP asked about North America volumes, and I think we've touched on that and tariffs. And so I think the last one then is another one. It's a follow-up from Guillaume on Q1 guidance, what's driving the soft start to the year in Europe. And then the second part of that is a question around private label. Do we see any pressure from private label in the region? Let me take those. So Europe, Q1, we fully expect to have a good year in Europe in 2025. Q1 is flat. We expect it to be flat. Part of that is some phasing of shipments. Part of that is a relatively subdued consumer environment. But we have a really good plan for the year in Europe. We have good innovation launching. I talked about the Nitrile platform as a really key one that will help Durex realize some good growth in Europe. But I feel like it's not a structural issue. It's just a slower start, and sometimes that happens. And the second question was private label. We're not seeing a big impact in our categories from private label. We did see it spike a bit in certain categories during the cost of living crisis and when consumers were under a lot of pressure. Generally, it's always important to remember that we are a very premium-branded business, and we tend to exist at the higher end of the categories we operate in. And so we are actually at times a little bit less vulnerable to trade down from private label than if you operate in the middle. But anyway, the good news is there's no real issues on the horizon as it pertains to private label. And that is everything from online, so. Okay. Thank you very much.

Speaker 9: Good morning, everybody, and thank you for joining us for the Reckitt Full Year 2024 results presentation. For those of you that don't know me, I'm Nick Ashworth, and I head up investor relations here at Reckitt. So before we start, can I draw your attention to the usual disclaimers in respect of forward-looking information? Following the presentation, we'll do the usual Q&A session. We will take questions from the room first, and then followed by written questions via the webcast. For those of you who have joined online, please feel free to submit your questions via the questions tab, and that's at the bottom of the screen, and I'll read them out. If you have further questions after the event, please feel free to reach out to the IR team, and we'll be happy to help. Good morning, everybody, and thank you for joining us for the Reckitt Full Year 2024 results presentation. good morning everybody and thank you for joining us for the reckitt full year 2024 results presentation For those of you that don't know me, I'm Nick Ashworth, and I head up investor relations here at Reckitt. for those of you that don't know me i'm nick ashworth and i head up investor relations here at reckitt So before we start, can I draw your attention to the usual disclaimers in respect of forward-looking information? so before we start can i draw your attention to the usual disclaimers in respect of forward-looking information Following the presentation, we'll do the usual Q&A session. following the presentation we'll do the usual q&a session We will take questions from the room first, and then followed by written questions via the webcast. we will take questions from the room first and then followed by written questions via the webcast For those of you who have joined online, please feel free to submit your questions via the questions tab, and that's at the bottom of the screen, and I'll read them out. for those of you who have joined online please feel free to submit your questions via the questions tab and that's at the bottom of the screen and i'll read them out If you have further questions after the event, please feel free to reach out to the IR team, and we'll be happy to help. if you have further questions after the event please feel free to reach out to the ir team and we'll be happy to help So with that said, I will hand over to our CEO, Kris Licht, to start the presentation. Kris. So with that said, I will hand over to our CEO, Kris Licht, to start the presentation. so with that said i will hand over to our ceo kris licht to start the presentation Kris. kris

Speaker 8: Thank you, Nick, and good morning to everyone in the room and those who have dialed in. I'm joined this morning by our CFO, Shannon Eisenhardt. I'll start with an overview of our 2024 results and some of the key highlights, and then Shannon will take you through the financial performance for the year. I'll then come back and provide an update on our strategy and key priorities for 2025, focused on the sharpened core Reckitt business. After that, we'll both be happy to take your questions. 2024 was a foundational year for Reckitt, as we announced a revised strategy and the steps that we're taking to deliver it. We're making big changes, and I'm really proud of the work our team has done as we move towards becoming a world-class consumer Health and Hygiene company. Thank you, Nick, and good morning to everyone in the room and those who have dialed in. thank you nick and good morning to everyone in the room and those who have dialed in I'm joined this morning by our CFO, Shannon Eisenhardt. i'm joined this morning by our cfo shannon eisenhardt I'll start with an overview of our 2024 results and some of the key highlights, and then Shannon will take you through the financial performance for the year. i'll start with an overview of our 2024 results and some of the key highlights and then shannon will take you through the financial performance for the year I'll then come back and provide an update on our strategy and key priorities for 2025, focused on the sharpened core Reckitt business. i'll then come back and provide an update on our strategy and key priorities for 2025 focused on the sharpened core reckitt business After that, we'll both be happy to take your questions. 2024 was a foundational year for Reckitt, as we announced a revised strategy and the steps that we're taking to deliver it. after that we'll both be happy to take your questions 2024 was a foundational year for reckitt as we announced a revised strategy and the steps that we're taking to deliver it We're making big changes, and I'm really proud of the work our team has done as we move towards becoming a world-class consumer Health and Hygiene company. we're making big changes and i'm really proud of the work our team has done as we move towards becoming a world-class consumer health and hygiene company We've grown the business, delivering on our ambition of driving top and bottom line growth with strong earnings and cash returns to shareholders. We've also improved our market shares, with 55% of our top CMUs holding or gaining share across both Health and Hygiene. Our innovation platforms have achieved very good results, with new products and new category creation, driving higher margin growth across our power brands. We've also increased investment, with total CapEx of GBP 500 million, reflecting continued multi-year investments in R&D and our supply chain, which will help power innovation and the future growth of the business. We've simplified the business, moving from five to three organizational layers to increase accountability and decision-making, accelerating delivery and execution. And finally, we're seeing good early benefits from our Fuel for Growth program, which is supporting increased investment in our brands to drive revenues, expand margins, and deliver sustained earnings growth. We've grown the business, delivering on our ambition of driving top and bottom line growth with strong earnings and cash returns to shareholders. we've grown the business delivering on our ambition of driving top and bottom line growth with strong earnings and cash returns to shareholders We've also improved our market shares, with 55% of our top CMUs holding or gaining share across both Health and Hygiene. we've also improved our market shares with 55% of our top cmus holding or gaining share across both health and hygiene Our innovation platforms have achieved very good results, with new products and new category creation, driving higher margin growth across our power brands. our innovation platforms have achieved very good results with new products and new category creation driving higher margin growth across our power brands We've also increased investment, with total CapEx of GBP 500 million, reflecting continued multi-year investments in R&D and our supply chain, which will help power innovation and the future growth of the business. we've also increased investment with total capex of gbp 500 million reflecting continued multi-year investments in r&d and our supply chain which will help power innovation and the future growth of the business We've simplified the business, moving from five to three organizational layers to increase accountability and decision-making, accelerating delivery and execution. we've simplified the business moving from five to three organizational layers to increase accountability and decision-making accelerating delivery and execution And finally, we're seeing good early benefits from our Fuel for Growth program, which is supporting increased investment in our brands to drive revenues, expand margins, and deliver sustained earnings growth. and finally we're seeing good early benefits from our fuel for growth program which is supporting increased investment in our brands to drive revenues expand margins and deliver sustained earnings growth This can be seen in our 2024 financial performance, which delivered both top and bottom line growth, with strong cash returns to shareholders. Group net revenue grew 1.4%, in line with our guidance of +1% to +3% growth. While this includes the impact of the tornado in July and a slow start to the cold and flu season, Health and Hygiene grew like-for-like net revenue by 4.6% and volume by 2.1%, excluding seasonal OTC. Regionally, we saw good growth in Europe and developing markets, notably in China, where net revenues grew double-digit, while seasonal OTC had a negative impact on our North American performance. Adjusted operating profit increased 8.6%, helped by the start of our Fuel for Growth program. The initial actions to sharpen our portfolio and simplify the business enabled us to increase investment in higher growth, higher return areas. This can be seen in our 2024 financial performance, which delivered both top and bottom line growth, with strong cash returns to shareholders. this can be seen in our 2024 financial performance which delivered both top and bottom line growth with strong cash returns to shareholders Group net revenue grew 1.4%, in line with our guidance of +1% to +3% growth. group net revenue grew 1.4% in line with our guidance of +1% to +3% growth While this includes the impact of the tornado in July and a slow start to the cold and flu season, Health and Hygiene grew like-for-like net revenue by 4.6% and volume by 2.1%, excluding seasonal OTC. while this includes the impact of the tornado in july and a slow start to the cold and flu season health and hygiene grew like-for-like net revenue by 4.6% and volume by 2.1% excluding seasonal otc Regionally, we saw good growth in Europe and developing markets, notably in China, where net revenues grew double-digit, while seasonal OTC had a negative impact on our North American performance. regionally we saw good growth in europe and developing markets notably in china where net revenues grew double-digit while seasonal otc had a negative impact on our north american performance Adjusted operating profit increased 8.6%, helped by the start of our Fuel for Growth program. adjusted operating profit increased 8.6% helped by the start of our fuel for growth program The initial actions to sharpen our portfolio and simplify the business enabled us to increase investment in higher growth, higher return areas. the initial actions to sharpen our portfolio and simplify the business enabled us to increase investment in higher growth higher return areas Higher operating profit led to strong EPS growth of 7.9%, which was supported by our ongoing share buyback program, as well as a lower tax rate. We delivered another year of increased cash returns, with GBP 2.7 billion returned to shareholders through our dividend and share buyback program, up 75% on the prior year. As part of our strategy update, we also set out our intention to exit both Essential Home and Mead Johnson Nutrition over time. At Essential Home, the new leadership team is now in place, and we remain on track to exit this business in 2025. As we move through the process, we will share news with you in a timely fashion. On Mead Johnson Nutrition, the team has responded well to the challenges it has faced in 2024. We continue to defend ourselves against all cases in the ongoing litigation. Higher operating profit led to strong EPS growth of 7.9%, which was supported by our ongoing share buyback program, as well as a lower tax rate. higher operating profit led to strong eps growth of 7.9% which was supported by our ongoing share buyback program as well as a lower tax rate We delivered another year of increased cash returns, with GBP 2.7 billion returned to shareholders through our dividend and share buyback program, up 75% on the prior year. we delivered another year of increased cash returns with gbp 2.7 billion returned to shareholders through our dividend and share buyback program up 75% on the prior year As part of our strategy update, we also set out our intention to exit both Essential Home and Mead Johnson Nutrition over time. as part of our strategy update we also set out our intention to exit both essential home and mead johnson nutrition over time At Essential Home, the new leadership team is now in place, and we remain on track to exit this business in 2025. at essential home the new leadership team is now in place and we remain on track to exit this business in 2025 As we move through the process, we will share news with you in a timely fashion. as we move through the process we will share news with you in a timely fashion On Mead Johnson Nutrition, the team has responded well to the challenges it has faced in 2024. on mead johnson nutrition the team has responded well to the challenges it has faced in 2024 We continue to defend ourselves against all cases in the ongoing litigation. we continue to defend ourselves against all cases in the ongoing litigation Our brands remain strong, led by Enfamil, the number one infant formula brand recommended by pediatricians, and Q4 Like-for-Like net revenue was plus 8.4%. We're confident that Nutrition will deliver growth in 2025. Overall, we've delivered a solid performance this year, and just as importantly, we're making good progress, laying the foundations for future growth. At the end of 2023, I set out the four strategic priorities for our business. Our progress in each of these areas over the last 12 months has not only contributed to good financial results, it has also strengthened our position for the year ahead and beyond. Shannon will give more detail on the Fuel for Growth program, and then I'll come back to talk about the progress we're making against our innovation platforms and more detail on our outlook for 2025 and beyond for Core Reckitt. Shannon, over to you. Our brands remain strong, led by Enfamil, the number one infant formula brand recommended by pediatricians, and Q4 Like-for-Like net revenue was plus 8.4%. our brands remain strong led by enfamil the number one infant formula brand recommended by pediatricians and q4 like-for-like net revenue was plus 8.4% We're confident that Nutrition will deliver growth in 2025. we're confident that nutrition will deliver growth in 2025 Overall, we've delivered a solid performance this year, and just as importantly, we're making good progress, laying the foundations for future growth. overall we've delivered a solid performance this year and just as importantly we're making good progress laying the foundations for future growth At the end of 2023, I set out the four strategic priorities for our business. at the end of 2023 i set out the four strategic priorities for our business Our progress in each of these areas over the last 12 months has not only contributed to good financial results, it has also strengthened our position for the year ahead and beyond. our progress in each of these areas over the last 12 months has not only contributed to good financial results it has also strengthened our position for the year ahead and beyond Shannon will give more detail on the Fuel for Growth program, and then I'll come back to talk about the progress we're making against our innovation platforms and more detail on our outlook for 2025 and beyond for Core Reckitt. shannon will give more detail on the fuel for growth program and then i'll come back to talk about the progress we're making against our innovation platforms and more detail on our outlook for 2025 and beyond for core reckitt Shannon, over to you. shannon over to you

Speaker 4: Thanks, Kris, and good morning, everyone. I'll start by taking you through our financial performance for the year before coming to our Fuel for Growth program and why we're confident in our ability to deliver a 300 basis point reduction in fixed costs by the end of 2027. I'll then turn to the new structure of the group, focusing on Core Reckitt in particular, and share our expectations for 2025. Turning first to the key group financials for 2024. Like-for-like net revenue grew 1.4% in the year, consistent with our guidance. Excluding seasonal OTC, which accounts for around 10% of group revenues and is impacted by the timing of the cold and flu season, like-for-like growth was 2.4%. Our gross margin remained above 60% and expanded 70 basis points year-on-year, driven by pricing and productivity efficiencies and a more benign environment for cost inflation. Thanks, Kris, and good morning, everyone. thanks kris and good morning everyone I'll start by taking you through our financial performance for the year before coming to our Fuel for Growth program and why we're confident in our ability to deliver a 300 basis point reduction in fixed costs by the end of 2027. i'll start by taking you through our financial performance for the year before coming to our fuel for growth program and why we're confident in our ability to deliver a 300 basis point reduction in fixed costs by the end of 2027 I'll then turn to the new structure of the group, focusing on Core Reckitt in particular, and share our expectations for 2025. i'll then turn to the new structure of the group focusing on core reckitt in particular and share our expectations for 2025 Turning first to the key group financials for 2024. turning first to the key group financials for 2024 Like-for-like net revenue grew 1.4% in the year, consistent with our guidance. like-for-like net revenue grew 1.4% in the year consistent with our guidance Excluding seasonal OTC, which accounts for around 10% of group revenues and is impacted by the timing of the cold and flu season, like-for-like growth was 2.4%. excluding seasonal otc which accounts for around 10% of group revenues and is impacted by the timing of the cold and flu season like-for-like growth was 2.4% Our gross margin remained above 60% and expanded 70 basis points year-on-year, driven by pricing and productivity efficiencies and a more benign environment for cost inflation. our gross margin remained above 60% and expanded 70 basis points year-on-year driven by pricing and productivity efficiencies and a more benign environment for cost inflation The additional impact of efficiencies from our Fuel for Growth program helped deliver a 90 basis point reduction in our fixed cost base and supported a 140 basis point expansion in our adjusted operating margin to 24.5%. This progress enabled us to increase brand equity investment by 30 basis points to 13.4% and drive EPS growth of 7.9% on an adjusted diluted basis. 2024 was another strong year for free cash flow of GBP 2.2 billion and enabled GBP 2.7 billion to be returned to our shareholders through our dividend and share buyback programs. This is consistent with our capital allocation policy of returning excess cash to shareholders while maintaining a strong balance sheet, which closed the year at two times net debt to EBITDA. Turning to volume, where we continued to see sequential improvement across the business. The additional impact of efficiencies from our Fuel for Growth program helped deliver a 90 basis point reduction in our fixed cost base and supported a 140 basis point expansion in our adjusted operating margin to 24.5%. the additional impact of efficiencies from our fuel for growth program helped deliver a 90 basis point reduction in our fixed cost base and supported a 140 basis point expansion in our adjusted operating margin to 24.5% This progress enabled us to increase brand equity investment by 30 basis points to 13.4% and drive EPS growth of 7.9% on an adjusted diluted basis. 2024 was another strong year for free cash flow of GBP 2.2 billion and enabled GBP 2.7 billion to be returned to our shareholders through our dividend and share buyback programs. this progress enabled us to increase brand equity investment by 30 basis points to 13.4% and drive eps growth of 7.9% on an adjusted diluted basis 2024 was another strong year for free cash flow of gbp 2.2 billion and enabled gbp 2.7 billion to be returned to our shareholders through our dividend and share buyback programs This is consistent with our capital allocation policy of returning excess cash to shareholders while maintaining a strong balance sheet, which closed the year at two times net debt to EBITDA. this is consistent with our capital allocation policy of returning excess cash to shareholders while maintaining a strong balance sheet which closed the year at two times net debt to ebitda Turning to volume, where we continued to see sequential improvement across the business. turning to volume where we continued to see sequential improvement across the business In Hygiene, volume trends were supported by the strong performance of our innovation platforms, in particular across Lysol and Finish. We exited the year with second-half volumes growing 2.5%. In health, volumes declined 0.4% in the second half, given the soft cold and flu season. Excluding this, volumes were up 2.7% in the second half, as we've seen broad-based growth across our power brands of Dettol, Durex, and Gaviscon, as well as double-digit growth in VMS. In nutrition, while there was volatility following the Mount Vernon tornado, volume trends improved in the second half as we were coming to the end of the market share rebasing. Moving to net revenue growth by business unit, Hygiene delivered 4.2% like-for-like growth for the year with a balanced volume and price mix growth algorithm, which is something we plan to continue into 2025. In Hygiene, volume trends were supported by the strong performance of our innovation platforms, in particular across Lysol and Finish. in hygiene volume trends were supported by the strong performance of our innovation platforms in particular across lysol and finish We exited the year with second-half volumes growing 2.5%. we exited the year with second-half volumes growing 2.5% In health, volumes declined 0.4% in the second half, given the soft cold and flu season. in health volumes declined 0.4% in the second half given the soft cold and flu season Excluding this, volumes were up 2.7% in the second half, as we've seen broad-based growth across our power brands of Dettol, Durex, and Gaviscon, as well as double-digit growth in VMS. excluding this volumes were up 2.7% in the second half as we've seen broad-based growth across our power brands of dettol durex and gaviscon as well as double-digit growth in vms In nutrition, while there was volatility following the Mount Vernon tornado, volume trends improved in the second half as we were coming to the end of the market share rebasing. in nutrition while there was volatility following the mount vernon tornado volume trends improved in the second half as we were coming to the end of the market share rebasing Moving to net revenue growth by business unit, Hygiene delivered 4.2% like-for-like growth for the year with a balanced volume and price mix growth algorithm, which is something we plan to continue into 2025. moving to net revenue growth by business unit hygiene delivered 4.2% like-for-like growth for the year with a balanced volume and price mix growth algorithm which is something we plan to continue into 2025 We delivered revenue growth across all of our power brands and across all of our regions in 2024, despite a more competitive environment. We're seeing positive market share momentum driven by being competitive on shelf and our successful innovation delivery. Looking at market shares, 55% of top CMUs held or gained market share, up from 47% a year ago. While not included in that 55%, it's pleasing to see Finish move into hold-gain share territory in Europe as we exited the year. As the market leader in Europe, we intend to win, and we have good momentum. Autodish remains a competitive category in the U.S., with focus on driving in-market execution. Overall, Finish grew revenue mid-single digits in the year and grew high single digits in Q4. Strong innovation has also played a big part in our market share momentum, with new launches across a number of our brands. We delivered revenue growth across all of our power brands and across all of our regions in 2024, despite a more competitive environment. we delivered revenue growth across all of our power brands and across all of our regions in 2024 despite a more competitive environment We're seeing positive market share momentum driven by being competitive on shelf and our successful innovation delivery. we're seeing positive market share momentum driven by being competitive on shelf and our successful innovation delivery Looking at market shares, 55% of top CMUs held or gained market share, up from 47% a year ago. looking at market shares 55% of top cmus held or gained market share up from 47% a year ago While not included in that 55%, it's pleasing to see Finish move into hold-gain share territory in Europe as we exited the year. while not included in that 55% it's pleasing to see finish move into hold-gain share territory in europe as we exited the year As the market leader in Europe, we intend to win, and we have good momentum. as the market leader in europe we intend to win and we have good momentum Autodish remains a competitive category in the U.S., with focus on driving in-market execution. autodish remains a competitive category in the u.s with focus on driving in-market execution Overall, Finish grew revenue mid-single digits in the year and grew high single digits in Q4. overall finish grew revenue mid-single digits in the year and grew high single digits in q4 Strong innovation has also played a big part in our market share momentum, with new launches across a number of our brands. strong innovation has also played a big part in our market share momentum with new launches across a number of our brands Lysol, in particular, has been a standout performer in 2024, up high single digits as volumes turned positive. We've seen strong growth across established segments, aided by innovation with our laundry and air sanitizer launches in recent years. Moving to health, health delivered 2.1% like-for-like growth for the year. This reflects broad-based revenue growth across non-seasonal power brands, strong growth in China, and new innovations, partially offset by a weak cold and flu season in 2024. Excluding seasonal OTC, the rest of our health portfolio had strong performance, with like-for-like sales up 8% in Q4, up 5.3% for 2024, with volume growth of 2.5%. Looking at the market share data, 55% of health top CMUs either gained or held market share, which is up from 46% a year ago. You'll remember in October, we commented on the strong health share gains we were seeing in the most recent three-month results. Lysol, in particular, has been a standout performer in 2024, up high single digits as volumes turned positive. lysol in particular has been a standout performer in 2024 up high single digits as volumes turned positive We've seen strong growth across established segments, aided by innovation with our laundry and air sanitizer launches in recent years. we've seen strong growth across established segments aided by innovation with our laundry and air sanitizer launches in recent years Moving to health, health delivered 2.1% like-for-like growth for the year. moving to health health delivered 2.1% like-for-like growth for the year This reflects broad-based revenue growth across non-seasonal power brands, strong growth in China, and new innovations, partially offset by a weak cold and flu season in 2024. this reflects broad-based revenue growth across non-seasonal power brands strong growth in china and new innovations partially offset by a weak cold and flu season in 2024 Excluding seasonal OTC, the rest of our health portfolio had strong performance, with like-for-like sales up 8% in Q4, up 5.3% for 2024, with volume growth of 2.5%. excluding seasonal otc the rest of our health portfolio had strong performance with like-for-like sales up 8% in q4 up 5.3% for 2024 with volume growth of 2.5% Looking at the market share data, 55% of health top CMUs either gained or held market share, which is up from 46% a year ago. looking at the market share data 55% of health top cmus either gained or held market share which is up from 46% a year ago You'll remember in October, we commented on the strong health share gains we were seeing in the most recent three-month results. you'll remember in october we commented on the strong health share gains we were seeing in the most recent three-month results Mucinex was a big part of this. It represents one of our largest category market CMUs and has a significant impact on our external share reporting. With a slow start to cold and flu in Q4, Mucinex moved out of gain-hold territory and is not included in the 55% I just referenced. Our year-end share reporting captures prior 12-month results by CMU. However, as we've seen the cold and flu season develop in Q1, Mucinex has moved back into gain territory. With its superior efficacy, it performs best when consumers are looking for relief. China continues to perform well, up double digits, and is now our second-largest country, behind the US. Mucinex was a big part of this. mucinex was a big part of this It represents one of our largest category market CMUs and has a significant impact on our external share reporting. it represents one of our largest category market cmus and has a significant impact on our external share reporting With a slow start to cold and flu in Q4, Mucinex moved out of gain-hold territory and is not included in the 55% I just referenced. with a slow start to cold and flu in q4 mucinex moved out of gain-hold territory and is not included in the 55% i just referenced Our year-end share reporting captures prior 12-month results by CMU. our year-end share reporting captures prior 12-month results by cmu However, as we've seen the cold and flu season develop in Q1, Mucinex has moved back into gain territory. however as we've seen the cold and flu season develop in q1 mucinex has moved back into gain territory With its superior efficacy, it performs best when consumers are looking for relief. with its superior efficacy it performs best when consumers are looking for relief China continues to perform well, up double digits, and is now our second-largest country, behind the US. china continues to perform well up double digits and is now our second-largest country behind the us Intimate Wellness was a strong driver, up high single digits across the group, as we gained market leadership in PU condoms in China, and VMS was up 10% across the group, driven by the performance of Move Free in China. We've successfully navigated macro pressures by creating products that solve the unique needs of our Chinese consumers and finding new and innovative routes to market. Finally, our innovation pipeline across health continues to deliver, with a number of new launches across Mucinex, as well as our launch of GaviDigest across a number of European markets, which is our first move into lower gastrointestinal. We're excited to see the growth that this can deliver. Turning now to nutrition, where like-for-like net revenue declined 7.3% in the year. Given the disruption to supply from the tornado in July, we exited 2024 with our non-WIC market share at 36%. Intimate Wellness was a strong driver, up high single digits across the group, as we gained market leadership in PU condoms in China, and VMS was up 10% across the group, driven by the performance of Move Free in China. intimate wellness was a strong driver up high single digits across the group as we gained market leadership in pu condoms in china and vms was up 10% across the group driven by the performance of move free in china We've successfully navigated macro pressures by creating products that solve the unique needs of our Chinese consumers and finding new and innovative routes to market. we've successfully navigated macro pressures by creating products that solve the unique needs of our chinese consumers and finding new and innovative routes to market Finally, our innovation pipeline across health continues to deliver, with a number of new launches across Mucinex, as well as our launch of GaviDigest across a number of European markets, which is our first move into lower gastrointestinal. finally our innovation pipeline across health continues to deliver with a number of new launches across mucinex as well as our launch of gavidigest across a number of european markets which is our first move into lower gastrointestinal We're excited to see the growth that this can deliver. we're excited to see the growth that this can deliver Turning now to nutrition, where like-for-like net revenue declined 7.3% in the year. turning now to nutrition where like-for-like net revenue declined 7.3% in the year Given the disruption to supply from the tornado in July, we exited 2024 with our non-WIC market share at 36%. given the disruption to supply from the tornado in july we exited 2024 with our non-wic market share at 36% We expect that to improve through the year as supply normalizes. Given the evolving regulatory environment in U.S. nutrition, our priority is strengthening our manufacturing capabilities in North America. We have doubled our CapEx spend in nutrition over the last two years, addressing key requirements to operate and sustain the business for the future, with a focus on driving remediation, compliance, and resilience. Moving now to group adjusted operating profit. Consistent with our strategic ambition and in line with our guidance, we delivered growth ahead of net revenue at the group level as well as across each of our GBUs. Group adjusted operating profit margin growth was driven by a 70 basis point increase in gross margin from pricing and productivity efficiencies, a 90 basis point fixed cost reduction with early benefits from our Fuel for Growth program. We expect that to improve through the year as supply normalizes. we expect that to improve through the year as supply normalizes Given the evolving regulatory environment in U.S. nutrition, our priority is strengthening our manufacturing capabilities in North America. given the evolving regulatory environment in u.s nutrition our priority is strengthening our manufacturing capabilities in north america We have doubled our CapEx spend in nutrition over the last two years, addressing key requirements to operate and sustain the business for the future, with a focus on driving remediation, compliance, and resilience. we have doubled our capex spend in nutrition over the last two years addressing key requirements to operate and sustain the business for the future with a focus on driving remediation compliance and resilience Moving now to group adjusted operating profit. moving now to group adjusted operating profit Consistent with our strategic ambition and in line with our guidance, we delivered growth ahead of net revenue at the group level as well as across each of our GBUs. consistent with our strategic ambition and in line with our guidance we delivered growth ahead of net revenue at the group level as well as across each of our gbus Group adjusted operating profit margin growth was driven by a 70 basis point increase in gross margin from pricing and productivity efficiencies, a 90 basis point fixed cost reduction with early benefits from our Fuel for Growth program. group adjusted operating profit margin growth was driven by a 70 basis point increase in gross margin from pricing and productivity efficiencies a 90 basis point fixed cost reduction with early benefits from our fuel for growth program This was partially offset by a 30 basis point increase in BEI investment as we used some of the benefits of Fuel for Growth to invest behind our brands. Adjusting for the impact of the tornado, where insurance proceeds to cover lost revenue went through fixed costs, underlying group AOP margin grew 110 basis points to 24.2%. On an IFRS basis, operating profit for the year was GBP 2.4 billion. This includes GBP 838 million of impairment charges relating to IFCN and Biofreeze. For nutrition, this reflects the significant capital investment program underway to meet evolving regulatory environments. For Biofreeze, a more challenging marketplace within topical pain relief. Turning now to Fuel for Growth in a bit more detail. As we set out in July, our target is to exit 2027 with a 300 basis point reduction in fixed costs, landing at 19% versus 22% in 2023. This was partially offset by a 30 basis point increase in BEI investment as we used some of the benefits of Fuel for Growth to invest behind our brands. this was partially offset by a 30 basis point increase in bei investment as we used some of the benefits of fuel for growth to invest behind our brands Adjusting for the impact of the tornado, where insurance proceeds to cover lost revenue went through fixed costs, underlying group AOP margin grew 110 basis points to 24.2%. adjusting for the impact of the tornado where insurance proceeds to cover lost revenue went through fixed costs underlying group aop margin grew 110 basis points to 24.2% On an IFRS basis, operating profit for the year was GBP 2.4 billion. on an ifrs basis operating profit for the year was gbp 2.4 billion This includes GBP 838 million of impairment charges relating to IFCN and Biofreeze. this includes gbp 838 million of impairment charges relating to ifcn and biofreeze For nutrition, this reflects the significant capital investment program underway to meet evolving regulatory environments. for nutrition this reflects the significant capital investment program underway to meet evolving regulatory environments For Biofreeze, a more challenging marketplace within topical pain relief. for biofreeze a more challenging marketplace within topical pain relief Turning now to Fuel for Growth in a bit more detail. turning now to fuel for growth in a bit more detail As we set out in July, our target is to exit 2027 with a 300 basis point reduction in fixed costs, landing at 19% versus 22% in 2023. as we set out in july our target is to exit 2027 with a 300 basis point reduction in fixed costs landing at 19% versus 22% in 2023 We're confident that we'll deliver on this ambition. We shared in July we expect to incur estimated one-off cash costs of around £1 billion through the end of 2027, and that the 19% target is inclusive of any residual costs after exiting our non-core businesses. In 2024, we've taken GBP 161 million of costs against this program and expect around GBP 500 million in 2025, with most of the balance in 2026. Today, we've delivered a net 60 basis point improvement in our operating cost base, and we expect a continued steady improvement of our cost base as we head to our 2027 target of 19%. I wanted to provide a little more color around the actions that we're taking and what's to come to reduce the cost base further. We're confident that we'll deliver on this ambition. we're confident that we'll deliver on this ambition We shared in July we expect to incur estimated one-off cash costs of around £1 billion through the end of 2027, and that the 19% target is inclusive of any residual costs after exiting our non-core businesses. we shared in july we expect to incur estimated one-off cash costs of around £1 billion through the end of 2027 and that the 19% target is inclusive of any residual costs after exiting our non-core businesses In 2024, we've taken GBP 161 million of costs against this program and expect around GBP 500 million in 2025, with most of the balance in 2026. in 2024 we've taken gbp 161 million of costs against this program and expect around gbp 500 million in 2025 with most of the balance in 2026 Today, we've delivered a net 60 basis point improvement in our operating cost base, and we expect a continued steady improvement of our cost base as we head to our 2027 target of 19%. today we've delivered a net 60 basis point improvement in our operating cost base and we expect a continued steady improvement of our cost base as we head to our 2027 target of 19% I wanted to provide a little more color around the actions that we're taking and what's to come to reduce the cost base further. i wanted to provide a little more color around the actions that we're taking and what's to come to reduce the cost base further Savings will materialize across four areas: organizational simplification, a greater adoption of shared services and automation, right-sizing some historical investments, and benefits from digital and generative AI opportunities. As Kris said, we've made great progress on organizational simplification, which will enable Core Reckitt to move quicker, make faster decisions closer to our markets, and is driving increased accountability. We're also making progress on our journey across automation and shared services. Today, we have pockets of services shared across the group, for example, within finance and within HR, and we can drive increased efficiencies and greater productivity with a more holistic approach to global business services across both functions and processes. We also see upside from right-sizing legacy investments. Take our global sales team as an example. Savings will materialize across four areas: organizational simplification, a greater adoption of shared services and automation, right-sizing some historical investments, and benefits from digital and generative AI opportunities. savings will materialize across four areas organizational simplification a greater adoption of shared services and automation right-sizing some historical investments and benefits from digital and generative ai opportunities As Kris said, we've made great progress on organizational simplification, which will enable Core Reckitt to move quicker, make faster decisions closer to our markets, and is driving increased accountability. as kris said we've made great progress on organizational simplification which will enable core reckitt to move quicker make faster decisions closer to our markets and is driving increased accountability We're also making progress on our journey across automation and shared services. we're also making progress on our journey across automation and shared services Today, we have pockets of services shared across the group, for example, within finance and within HR, and we can drive increased efficiencies and greater productivity with a more holistic approach to global business services across both functions and processes. today we have pockets of services shared across the group for example within finance and within hr and we can drive increased efficiencies and greater productivity with a more holistic approach to global business services across both functions and processes We also see upside from right-sizing legacy investments. we also see upside from right-sizing legacy investments Take our global sales team as an example. take our global sales team as an example We've optimized our global and local sales teams to reduce duplication, increasing focus on priority areas, while further investing in new digital technologies to drive better operational execution. We're also investing in digital and generative AI. As a component of Fuel for Growth, this area is important to improve costs as well as driving top-line growth through enabling greater levels of collaboration and innovation, and we're already seeing results within marketing. An example of this is around product concept development, where early findings show these tools reduce development time by up to 60% while also significantly improving quality. GenAI tools will next be rolled out across our R&D function in 2025 to drive both productivity as well as product superiority. There's still a lot to do, but we have clear line of sight to 19% fixed cost base by the end of 2027. We've optimized our global and local sales teams to reduce duplication, increasing focus on priority areas, while further investing in new digital technologies to drive better operational execution. we've optimized our global and local sales teams to reduce duplication increasing focus on priority areas while further investing in new digital technologies to drive better operational execution We're also investing in digital and generative AI. we're also investing in digital and generative ai As a component of Fuel for Growth, this area is important to improve costs as well as driving top-line growth through enabling greater levels of collaboration and innovation, and we're already seeing results within marketing. as a component of fuel for growth this area is important to improve costs as well as driving top-line growth through enabling greater levels of collaboration and innovation and we're already seeing results within marketing An example of this is around product concept development, where early findings show these tools reduce development time by up to 60% while also significantly improving quality. an example of this is around product concept development where early findings show these tools reduce development time by up to 60% while also significantly improving quality GenAI tools will next be rolled out across our R&D function in 2025 to drive both productivity as well as product superiority. genai tools will next be rolled out across our r&d function in 2025 to drive both productivity as well as product superiority There's still a lot to do, but we have clear line of sight to 19% fixed cost base by the end of 2027. there's still a lot to do but we have clear line of sight to 19% fixed cost base by the end of 2027 Turning to EPS, which grew ahead of net revenue at 7.9% in the year to GBP 349. This was primarily driven by our 140 basis points improvement in adjusted operating margin. Our ongoing share buyback program added GBP 0.08 per share, while a lower effective tax rate of 22.2% helped as we continue to close out historic tax positions. We do expect our adjusted ETR to be in the 25%-26% range in 2025. These increases were partially offset by the strength of sterling, our reporting currency. We delivered another strong year of free cash flow generation with a 91% conversion rate. We've increased the full-year dividend by 5%, and we continue to return excess cash to our shareholders, with GBP 1.3 billion returned through share buybacks in 2024 and total cash returned to shareholders, up 75% year-on-year. Turning to EPS, which grew ahead of net revenue at 7.9% in the year to GBP 349. turning to eps which grew ahead of net revenue at 7.9% in the year to gbp 349 This was primarily driven by our 140 basis points improvement in adjusted operating margin. this was primarily driven by our 140 basis points improvement in adjusted operating margin Our ongoing share buyback program added GBP 0.08 per share, while a lower effective tax rate of 22.2% helped as we continue to close out historic tax positions. our ongoing share buyback program added gbp 0.08 per share while a lower effective tax rate of 22.2% helped as we continue to close out historic tax positions We do expect our adjusted ETR to be in the 25%-26% range in 2025. we do expect our adjusted etr to be in the 25%-26% range in 2025 These increases were partially offset by the strength of sterling, our reporting currency. these increases were partially offset by the strength of sterling our reporting currency We delivered another strong year of free cash flow generation with a 91% conversion rate. we delivered another strong year of free cash flow generation with a 91% conversion rate We've increased the full-year dividend by 5%, and we continue to return excess cash to our shareholders, with GBP 1.3 billion returned through share buybacks in 2024 and total cash returned to shareholders, up 75% year-on-year. we've increased the full-year dividend by 5% and we continue to return excess cash to our shareholders with gbp 1.3 billion returned through share buybacks in 2024 and total cash returned to shareholders up 75% year-on-year We did this while maintaining a strong balance sheet with net debt to EBITDA at two times, which is consistent with our capital allocation framework. Our capital allocation policy remains unchanged. Turning now to our new operating structure. Going forward, we'll be reporting through three segments: Core Reckitt, Essential Home, and Mead Johnson Nutrition. We use the term Core Reckitt for now to denote the future Reckitt business post-exiting Essential Home and Mead Johnson Nutrition. Within Core Reckitt, we'll report three geographic areas: emerging markets, Europe, and North America, as well as reporting like-for-like net revenue each quarter across our four categories of Self-Care, Germ Protection, Household care, and Intimate Wellness. You'll find pro forma financial information across our geographic areas and categories to aid in modeling of the new structure going forward in this morning's release. We did this while maintaining a strong balance sheet with net debt to EBITDA at two times, which is consistent with our capital allocation framework. we did this while maintaining a strong balance sheet with net debt to ebitda at two times which is consistent with our capital allocation framework Our capital allocation policy remains unchanged. our capital allocation policy remains unchanged Turning now to our new operating structure. turning now to our new operating structure Going forward, we'll be reporting through three segments: Core Reckitt, Essential Home, and Mead Johnson Nutrition. going forward we'll be reporting through three segments core reckitt essential home and mead johnson nutrition We use the term Core Reckitt for now to denote the future Reckitt business post-exiting Essential Home and Mead Johnson Nutrition. we use the term core reckitt for now to denote the future reckitt business post-exiting essential home and mead johnson nutrition Within Core Reckitt, we'll report three geographic areas: emerging markets, Europe, and North America, as well as reporting like-for-like net revenue each quarter across our four categories of Self-Care, Germ Protection, Household care, and Intimate Wellness. within core reckitt we'll report three geographic areas emerging markets europe and north america as well as reporting like-for-like net revenue each quarter across our four categories of self-care germ protection household care and intimate wellness You'll find pro forma financial information across our geographic areas and categories to aid in modeling of the new structure going forward in this morning's release. you'll find pro forma financial information across our geographic areas and categories to aid in modeling of the new structure going forward in this morning's release Core Reckitt has delivered 5% like-for-like growth on average over the past three years, with emerging markets in Europe above this and North America broadly flat following a period of rapid growth through COVID. Core Reckitt has the highest gross margin of the three businesses, enabling a greater BEI investment in our power brands while still delivering the highest operating profit margin. Finally, turning now to our expectations for 2025. This will be an important year for Reckitt as we continue repositioning our company. We're targeting 3%-4% like-for-like net revenue growth in Core Reckitt with a balanced delivery across half one and half two. Across our geographies, in Q1, we expect mid to high single-digit growth in emerging markets, with Europe flat. In North America, we expect low single-digit growth, partially driven by retailer destocking, and a slower-than-expected ramp-up in new capacity to meet stronger Lysol demand. Core Reckitt has delivered 5% like-for-like growth on average over the past three years, with emerging markets in Europe above this and North America broadly flat following a period of rapid growth through COVID. core reckitt has delivered 5% like-for-like growth on average over the past three years with emerging markets in europe above this and north america broadly flat following a period of rapid growth through covid Core Reckitt has the highest gross margin of the three businesses, enabling a greater BEI investment in our power brands while still delivering the highest operating profit margin. core reckitt has the highest gross margin of the three businesses enabling a greater bei investment in our power brands while still delivering the highest operating profit margin Finally, turning now to our expectations for 2025. finally turning now to our expectations for 2025 This will be an important year for Reckitt as we continue repositioning our company. this will be an important year for reckitt as we continue repositioning our company We're targeting 3%-4% like-for-like net revenue growth in Core Reckitt with a balanced delivery across half one and half two. we're targeting 3%-4% like-for-like net revenue growth in core reckitt with a balanced delivery across half one and half two Across our geographies, in Q1, we expect mid to high single-digit growth in emerging markets, with Europe flat. across our geographies in q1 we expect mid to high single-digit growth in emerging markets with europe flat In North America, we expect low single-digit growth, partially driven by retailer destocking, and a slower-than-expected ramp-up in new capacity to meet stronger Lysol demand. in north america we expect low single-digit growth partially driven by retailer destocking and a slower-than-expected ramp-up in new capacity to meet stronger lysol demand We expect low single-digit like-for-like growth in both Essential Home and Mead Johnson Nutrition in 2025, with both being back-half weighted. Both of these businesses will show like-for-like declines in half one. Taking this all together results in group like-for-like growth of 2% to 4%, with Essential Home and Nutrition making this a little more second-half weighted. With our Fuel for Growth program moving into its second year, we expect to drive adjusted operating profit ahead of net revenue growth. With adjusted net finance expense of GBP 350 million-GBP 370 million and an effective tax rate of 25% to 26%, we expect to deliver another year of EPS growth. I'll now hand back to Kris to talk about our strategic priorities. We expect low single-digit like-for-like growth in both Essential Home and Mead Johnson Nutrition in 2025, with both being back-half weighted. we expect low single-digit like-for-like growth in both essential home and mead johnson nutrition in 2025 with both being back-half weighted Both of these businesses will show like-for-like declines in half one. both of these businesses will show like-for-like declines in half one Taking this all together results in group like-for-like growth of 2% to 4%, with Essential Home and Nutrition making this a little more second-half weighted. taking this all together results in group like-for-like growth of 2% to 4% with essential home and nutrition making this a little more second-half weighted With our Fuel for Growth program moving into its second year, we expect to drive adjusted operating profit ahead of net revenue growth. with our fuel for growth program moving into its second year we expect to drive adjusted operating profit ahead of net revenue growth With adjusted net finance expense of GBP 350 million-GBP 370 million and an effective tax rate of 25% to 26%, we expect to deliver another year of EPS growth. with adjusted net finance expense of gbp 350 million-gbp 370 million and an effective tax rate of 25% to 26% we expect to deliver another year of eps growth I'll now hand back to Kris to talk about our strategic priorities. i'll now hand back to kris to talk about our strategic priorities

Speaker 8: Great. Thank you, Shannon. I want to turn now to the actions we're taking to reshape Reckitt through a sharper portfolio and a simpler organization. Great. great Thank you, Shannon. thank you shannon I want to turn now to the actions we're taking to reshape Reckitt through a sharper portfolio and a simpler organization. i want to turn now to the actions we're taking to reshape reckitt through a sharper portfolio and a simpler organization I'm confident that our strategy is transforming the business into a world-class consumer health and Hygiene company with one of the strongest growth and margin profiles in the industry. We have strong foundations with a portfolio of power brands that offer significant growth potential across the world. A year ago, I set out four priority areas for our business, areas that we've focused on through 2024. In July, I gave you an update on our portfolio value creation actions and the three principles that we've applied to our portfolio. One, a brand or a business must have a clear and credible long-term runway for growth. Two, it must have an attractive earnings model with a high gross margin to support continuous investment in growth and premiumization. And finally, a brand or a business must have enduring competitive advantages, for instance, a number one or two equity position. I'm confident that our strategy is transforming the business into a world-class consumer health and Hygiene company with one of the strongest growth and margin profiles in the industry. i'm confident that our strategy is transforming the business into a world-class consumer health and hygiene company with one of the strongest growth and margin profiles in the industry We have strong foundations with a portfolio of power brands that offer significant growth potential across the world. we have strong foundations with a portfolio of power brands that offer significant growth potential across the world A year ago, I set out four priority areas for our business, areas that we've focused on through 2024. a year ago i set out four priority areas for our business areas that we've focused on through 2024 In July, I gave you an update on our portfolio value creation actions and the three principles that we've applied to our portfolio. in july i gave you an update on our portfolio value creation actions and the three principles that we've applied to our portfolio One, a brand or a business must have a clear and credible long-term runway for growth. one a brand or a business must have a clear and credible long-term runway for growth Two, it must have an attractive earnings model with a high gross margin to support continuous investment in growth and premiumization. two it must have an attractive earnings model with a high gross margin to support continuous investment in growth and premiumization And finally, a brand or a business must have enduring competitive advantages, for instance, a number one or two equity position. and finally a brand or a business must have enduring competitive advantages for instance a number one or two equity position Core Reckitt is comprised of a sharpened portfolio of 11 power brands that make up just over 80% of our net revenue, all of which meet these principles. Our power brands sit across categories that are helping consumers improve their daily lives. With ever-increasing focus on health and well-being, now further accelerated by the broadening use of GLP-1s, consumers across the world are looking to products that protect and provide relief. They're willing to pay a premium for efficacious solutions, whether they're in China, Mexico, India, or right here in the UK. Our power brands play to these trends. Today, I want to talk in more detail about what we're doing in terms of product superiority and how we're enabling our teams to take advantage of these tailwinds to win in each of our markets. When it comes to ensuring product superiority, our goal is simple: to delight our consumers. Core Reckitt is comprised of a sharpened portfolio of 11 power brands that make up just over 80% of our net revenue, all of which meet these principles. core reckitt is comprised of a sharpened portfolio of 11 power brands that make up just over 80% of our net revenue all of which meet these principles Our power brands sit across categories that are helping consumers improve their daily lives. our power brands sit across categories that are helping consumers improve their daily lives With ever-increasing focus on health and well-being, now further accelerated by the broadening use of GLP-1s, consumers across the world are looking to products that protect and provide relief. with ever-increasing focus on health and well-being now further accelerated by the broadening use of glp-1s consumers across the world are looking to products that protect and provide relief They're willing to pay a premium for efficacious solutions, whether they're in China, Mexico, India, or right here in the UK. they're willing to pay a premium for efficacious solutions whether they're in china mexico india or right here in the uk Our power brands play to these trends. our power brands play to these trends Today, I want to talk in more detail about what we're doing in terms of product superiority and how we're enabling our teams to take advantage of these tailwinds to win in each of our markets. today i want to talk in more detail about what we're doing in terms of product superiority and how we're enabling our teams to take advantage of these tailwinds to win in each of our markets When it comes to ensuring product superiority, our goal is simple: to delight our consumers. when it comes to ensuring product superiority our goal is simple to delight our consumers Innovation is at the heart of everything we do at Reckitt. It keeps us relevant with consumers and enables us to grow our categories and our market shares through premiumization, through the ability to enter new markets, and by growing into new and adjacent categories. Our innovation platforms have been a significant focus of mine since I joined Reckitt. Initially, that was in developing and growing our innovation platforms in health and more recently across the wider group. We have a deep understanding of consumer demand spaces, unmet consumer needs, and category drivers. Our people know how to build and broaden iconic brands. Many of our brands are synonymous with the categories they lead: categories that are expandable, higher value, and less discretionary. As a result, we're in a far stronger position today than we were five years ago. Innovation is at the heart of everything we do at Reckitt. innovation is at the heart of everything we do at reckitt It keeps us relevant with consumers and enables us to grow our categories and our market shares through premiumization, through the ability to enter new markets, and by growing into new and adjacent categories. it keeps us relevant with consumers and enables us to grow our categories and our market shares through premiumization through the ability to enter new markets and by growing into new and adjacent categories Our innovation platforms have been a significant focus of mine since I joined Reckitt. our innovation platforms have been a significant focus of mine since i joined reckitt Initially, that was in developing and growing our innovation platforms in health and more recently across the wider group. initially that was in developing and growing our innovation platforms in health and more recently across the wider group We have a deep understanding of consumer demand spaces, unmet consumer needs, and category drivers. we have a deep understanding of consumer demand spaces unmet consumer needs and category drivers Our people know how to build and broaden iconic brands. our people know how to build and broaden iconic brands Many of our brands are synonymous with the categories they lead: categories that are expandable, higher value, and less discretionary. many of our brands are synonymous with the categories they lead categories that are expandable higher value and less discretionary As a result, we're in a far stronger position today than we were five years ago. as a result we're in a far stronger position today than we were five years ago To give you just two examples, in Durex, we're now market share leaders in polyurethane condoms in China from a standing start five years ago. And in Lysol, we've used our strong brand equity to create an entirely new category with air sanitizer. This is what I mean when I talk about innovation platforms: the potential to deliver impactful, lasting change to the business in a relatively short timeframe. And our innovation pipeline is getting stronger and stronger. Across all four categories and across all three geographic areas, we have even more exciting launches planned for this year and for 2026. So let me tell you what we're doing. In germ protection, we're bringing two of our most iconic power brands together: Lysol and Dettol. A great example of how our shared Lysol and Dettol innovation and science platforms will enable future growth is laundry sanitizer. To give you just two examples, in Durex, we're now market share leaders in polyurethane condoms in China from a standing start five years ago. to give you just two examples in durex we're now market share leaders in polyurethane condoms in china from a standing start five years ago And in Lysol, we've used our strong brand equity to create an entirely new category with air sanitizer. and in lysol we've used our strong brand equity to create an entirely new category with air sanitizer This is what I mean when I talk about innovation platforms: the potential to deliver impactful, lasting change to the business in a relatively short timeframe. this is what i mean when i talk about innovation platforms the potential to deliver impactful lasting change to the business in a relatively short timeframe And our innovation pipeline is getting stronger and stronger. and our innovation pipeline is getting stronger and stronger Across all four categories and across all three geographic areas, we have even more exciting launches planned for this year and for 2026. across all four categories and across all three geographic areas we have even more exciting launches planned for this year and for 2026 So let me tell you what we're doing. so let me tell you what we're doing In germ protection, we're bringing two of our most iconic power brands together: Lysol and Dettol. in germ protection we're bringing two of our most iconic power brands together lysol and dettol A great example of how our shared Lysol and Dettol innovation and science platforms will enable future growth is laundry sanitizer. a great example of how our shared lysol and dettol innovation and science platforms will enable future growth is laundry sanitizer This is now a GBP 300 million net revenue business, and it's the third largest segment within germ protection. These brands deliver trusted disinfection and provide significantly better consumer experience in fabric care, with a unique benefit of killing germs that detergents leave behind. The global expansion of our two iconic disinfection brands into new categories such as laundry sanitizer has unlocked significant growth with double-digit CAGR over the last four years. There is more to come, with significant opportunities to increase household penetration. Supported by our unique brand equity and superior science, we're expanding rapidly across key markets, including China and the U.S., to serve more sanitizer occasions with superior product solutions. Moving to Self-Care, Mucinex is known for its efficacious products and performs best when consumers need strong relief. This is now a GBP 300 million net revenue business, and it's the third largest segment within germ protection. this is now a gbp 300 million net revenue business and it's the third largest segment within germ protection These brands deliver trusted disinfection and provide significantly better consumer experience in fabric care, with a unique benefit of killing germs that detergents leave behind. these brands deliver trusted disinfection and provide significantly better consumer experience in fabric care with a unique benefit of killing germs that detergents leave behind The global expansion of our two iconic disinfection brands into new categories such as laundry sanitizer has unlocked significant growth with double-digit CAGR over the last four years. the global expansion of our two iconic disinfection brands into new categories such as laundry sanitizer has unlocked significant growth with double-digit cagr over the last four years There is more to come, with significant opportunities to increase household penetration. there is more to come with significant opportunities to increase household penetration Supported by our unique brand equity and superior science, we're expanding rapidly across key markets, including China and the U.S., to serve more sanitizer occasions with superior product solutions. supported by our unique brand equity and superior science we're expanding rapidly across key markets including china and the u.s to serve more sanitizer occasions with superior product solutions Moving to Self-Care, Mucinex is known for its efficacious products and performs best when consumers need strong relief. moving to self-care mucinex is known for its efficacious products and performs best when consumers need strong relief As a result, as the U.S. cold and flu season has picked up since the start of the year, its market share performance has also turned positive. This is another key brand in our portfolio that has a great future powered by innovation. In the past 18 months, we've launched a number of innovations across our Mucinex brand, including Fast-Max Kickstart, Sinus 2-in-1 Nasal Spray, and Mighty Chews for children. We're feeling good about growing these new products in 2025, and we're looking forward to adding more innovation in this space. Turning to Intimate Wellness, which delivered high single-digit growth in 2024, led by our performance across developing markets, powered by the continued success of our innovation platforms. In 2024, as a result of sharp gains, Durex took market leadership in the polyurethane condom category in China, and at the same time, we successfully launched new hyaluronic acid condoms. As a result, as the U.S. cold and flu season has picked up since the start of the year, its market share performance has also turned positive. as a result as the u.s cold and flu season has picked up since the start of the year its market share performance has also turned positive This is another key brand in our portfolio that has a great future powered by innovation. this is another key brand in our portfolio that has a great future powered by innovation In the past 18 months, we've launched a number of innovations across our Mucinex brand, including Fast-Max Kickstart, Sinus 2-in-1 Nasal Spray, and Mighty Chews for children. in the past 18 months we've launched a number of innovations across our mucinex brand including fast-max kickstart sinus 2-in-1 nasal spray and mighty chews for children We're feeling good about growing these new products in 2025, and we're looking forward to adding more innovation in this space. we're feeling good about growing these new products in 2025 and we're looking forward to adding more innovation in this space Turning to Intimate Wellness, which delivered high single-digit growth in 2024, led by our performance across developing markets, powered by the continued success of our innovation platforms. turning to intimate wellness which delivered high single-digit growth in 2024 led by our performance across developing markets powered by the continued success of our innovation platforms In 2024, as a result of sharp gains, Durex took market leadership in the polyurethane condom category in China, and at the same time, we successfully launched new hyaluronic acid condoms. in 2024 as a result of sharp gains durex took market leadership in the polyurethane condom category in china and at the same time we successfully launched new hyaluronic acid condoms The 2025 pipeline is strong. In fact, at the moment, we're rolling out a revolutionary new condom in Europe. Called Durex Intensity, it is made from nitrile, a first-to-the-world innovation, and a truly superior sensorial product that we're very excited about. Durex Intensity, coupled with the innovation strength across the rest of the Durex platform, bodes well for the future of the brand and the wider Intimate Wellness portfolio. Last, in our household care category, Finish had a good year growing mid-single digits. As I've said before, we're having great success evolving and premiumizing the Finish portfolio, with 75% of our tabs net revenue now coming from thermoform. This corresponds to over GBP 400 million of net revenue, and our focus in 2025 is to continue to expand into this segment, as well as further improve in-market execution across Europe and within key customers in the US. The 2025 pipeline is strong. the 2025 pipeline is strong In fact, at the moment, we're rolling out a revolutionary new condom in Europe. in fact at the moment we're rolling out a revolutionary new condom in europe Called Durex Intensity, it is made from nitrile, a first-to-the-world innovation, and a truly superior sensorial product that we're very excited about. called durex intensity it is made from nitrile a first-to-the-world innovation and a truly superior sensorial product that we're very excited about Durex Intensity, coupled with the innovation strength across the rest of the Durex platform, bodes well for the future of the brand and the wider Intimate Wellness portfolio. durex intensity coupled with the innovation strength across the rest of the durex platform bodes well for the future of the brand and the wider intimate wellness portfolio Last, in our household care category, Finish had a good year growing mid-single digits. last in our household care category finish had a good year growing mid-single digits As I've said before, we're having great success evolving and premiumizing the Finish portfolio, with 75% of our tabs net revenue now coming from thermoform. as i've said before we're having great success evolving and premiumizing the finish portfolio with 75% of our tabs net revenue now coming from thermoform This corresponds to over GBP 400 million of net revenue, and our focus in 2025 is to continue to expand into this segment, as well as further improve in-market execution across Europe and within key customers in the US. this corresponds to over gbp 400 million of net revenue and our focus in 2025 is to continue to expand into this segment as well as further improve in-market execution across europe and within key customers in the us Shannon talked about our work using generative AI, and Finish is a great example. We're using our new tools to sift through years of past research and testing data, which is resulting in new product concepts that we're assessing, each grounded in science and consumer insights to create great products for the future. So there's a lot to look forward to with Finish in the coming years. Those are just a few examples of what we're doing with our brands and innovations. There is much more to cover. We have an embedded culture and process for sustained innovation. In May, our Chief Category Growth Officer, Ryan Djani, will host the first in a new series of regular Reckitt-focused investor seminars. He will explain what we're doing in each of our categories and show how we're working with our regional teams to deliver sustainable growth. Shannon talked about our work using generative AI, and Finish is a great example. shannon talked about our work using generative ai and finish is a great example We're using our new tools to sift through years of past research and testing data, which is resulting in new product concepts that we're assessing, each grounded in science and consumer insights to create great products for the future. we're using our new tools to sift through years of past research and testing data which is resulting in new product concepts that we're assessing each grounded in science and consumer insights to create great products for the future So there's a lot to look forward to with Finish in the coming years. so there's a lot to look forward to with finish in the coming years Those are just a few examples of what we're doing with our brands and innovations. those are just a few examples of what we're doing with our brands and innovations There is much more to cover. there is much more to cover We have an embedded culture and process for sustained innovation. we have an embedded culture and process for sustained innovation In May, our Chief Category Growth Officer, Ryan Djani, will host the first in a new series of regular Reckitt-focused investor seminars. in may our chief category growth officer ryan djani will host the first in a new series of regular reckitt-focused investor seminars He will explain what we're doing in each of our categories and show how we're working with our regional teams to deliver sustainable growth. he will explain what we're doing in each of our categories and show how we're working with our regional teams to deliver sustainable growth Having great power brands is critical, but they also need a winning proposition and strong go-to-market execution in each of their markets. This is why it's so important to focus on consistent and excellent execution. As we embed our new structure, this is an area where I believe we can achieve a step change in performance. The new unified global category organization operating through the three geographic areas will allow us to address this. We will build on the success we've had with our innovation pipeline while removing the duplication of roles by country that developed within autonomous business units in our old GBU structure. Turning first to emerging markets, this is our largest and highest growth area where we see a rising middle class and significant penetration opportunities. Having great power brands is critical, but they also need a winning proposition and strong go-to-market execution in each of their markets. having great power brands is critical but they also need a winning proposition and strong go-to-market execution in each of their markets This is why it's so important to focus on consistent and excellent execution. this is why it's so important to focus on consistent and excellent execution As we embed our new structure, this is an area where I believe we can achieve a step change in performance. as we embed our new structure this is an area where i believe we can achieve a step change in performance The new unified global category organization operating through the three geographic areas will allow us to address this. the new unified global category organization operating through the three geographic areas will allow us to address this We will build on the success we've had with our innovation pipeline while removing the duplication of roles by country that developed within autonomous business units in our old GBU structure. we will build on the success we've had with our innovation pipeline while removing the duplication of roles by country that developed within autonomous business units in our old gbu structure Turning first to emerging markets, this is our largest and highest growth area where we see a rising middle class and significant penetration opportunities. turning first to emerging markets this is our largest and highest growth area where we see a rising middle class and significant penetration opportunities That's reflected in our like-for-like net revenue CAGR of above 5% over the last three years, including a strong performance in 2024. We have a great team with extensive experience in the different types of trade partners and channels across these markets, and with a deep understanding of the consumers we serve and the customers we partner with. We know how to expand distribution. In India, we've expanded into high-potential rural areas, growing market coverage by around 25% in two years as we leverage Google API data to map affluence and identify incremental distribution opportunities, and in Africa, we're seeing good growth from a small base across a number of sub-Saharan countries, which promise a long runway for growth ahead. We know how to expand our categories. In China, we've increased revenues of our female Intimate Wellness brand, Intima, by 4x since 2023. That's reflected in our like-for-like net revenue CAGR of above 5% over the last three years, including a strong performance in 2024. that's reflected in our like-for-like net revenue cagr of above 5% over the last three years including a strong performance in 2024 We have a great team with extensive experience in the different types of trade partners and channels across these markets, and with a deep understanding of the consumers we serve and the customers we partner with. we have a great team with extensive experience in the different types of trade partners and channels across these markets and with a deep understanding of the consumers we serve and the customers we partner with We know how to expand distribution. we know how to expand distribution In India, we've expanded into high-potential rural areas, growing market coverage by around 25% in two years as we leverage Google API data to map affluence and identify incremental distribution opportunities, and in Africa, we're seeing good growth from a small base across a number of sub-Saharan countries, which promise a long runway for growth ahead. in india we've expanded into high-potential rural areas growing market coverage by around 25% in two years as we leverage google api data to map affluence and identify incremental distribution opportunities and in africa we're seeing good growth from a small base across a number of sub-saharan countries which promise a long runway for growth ahead We know how to expand our categories. we know how to expand our categories In China, we've increased revenues of our female Intimate Wellness brand, Intima, by 4x since 2023. in china we've increased revenues of our female intimate wellness brand intima by 4x since 2023 We've driven Dettol expansion through 5-in-1 washing machine cleaner, resulting in over a three-times net revenue growth since 2022. And we've had success with our VMS portfolio, including Move Free. We also know how to drive home our competitive advantage. In Latin America, superior execution and strong communication to consumers and healthcare professionals behind the Strepsils brand has enabled us to gain 600 basis points of market share in 2024. And we continue to invest in R&D capabilities to drive future growth. This includes breaking ground on our new global R&D center in Shanghai, which will amplify our understanding of the Chinese consumer as we look to expand and create categories through innovation. I am confident in our ability to drive excellent growth in emerging markets. This will certainly benefit from the heightened focus that our new structure brings. We've driven Dettol expansion through 5-in-1 washing machine cleaner, resulting in over a three-times net revenue growth since 2022. we've driven dettol expansion through 5-in-1 washing machine cleaner resulting in over a three-times net revenue growth since 2022 And we've had success with our VMS portfolio, including Move Free. and we've had success with our vms portfolio including move free We also know how to drive home our competitive advantage. we also know how to drive home our competitive advantage In Latin America, superior execution and strong communication to consumers and healthcare professionals behind the Strepsils brand has enabled us to gain 600 basis points of market share in 2024. in latin america superior execution and strong communication to consumers and healthcare professionals behind the strepsils brand has enabled us to gain 600 basis points of market share in 2024 And we continue to invest in R&D capabilities to drive future growth. and we continue to invest in r&d capabilities to drive future growth This includes breaking ground on our new global R&D center in Shanghai, which will amplify our understanding of the Chinese consumer as we look to expand and create categories through innovation. this includes breaking ground on our new global r&d center in shanghai which will amplify our understanding of the chinese consumer as we look to expand and create categories through innovation I am confident in our ability to drive excellent growth in emerging markets. i am confident in our ability to drive excellent growth in emerging markets This will certainly benefit from the heightened focus that our new structure brings. this will certainly benefit from the heightened focus that our new structure brings Next, turning to our Europe segment, which is Core Reckitt's second biggest area and delivered good growth of 3.3% in 2024. We have a distinct competitive edge with most of our brands all holding number one and number two positions, spanning both OTC, consumer Health, and Hygiene. As a result, we're particularly well placed to meet the growing demand for self-care as healthcare systems come under increasing pressure. We're using data and technology to further improve our in-market execution. In the past 12 months, our R&D teams have been using proprietary GenAI tools that take real-time consumer feedback into account country by country to better understand the success of our new product launches and apply these learnings to other markets. We've also deployed a new CRM tool for European pharmacies, offering advanced detailing capabilities and AI-driven assortment optimization, and we're driving sustained category leadership across channels. Next, turning to our Europe segment, which is Core Reckitt's second biggest area and delivered good growth of 3.3% in 2024. next turning to our europe segment which is core reckitt's second biggest area and delivered good growth of 3.3% in 2024 We have a distinct competitive edge with most of our brands all holding number one and number two positions, spanning both OTC, consumer Health, and Hygiene. we have a distinct competitive edge with most of our brands all holding number one and number two positions spanning both otc consumer health and hygiene As a result, we're particularly well placed to meet the growing demand for self-care as healthcare systems come under increasing pressure. as a result we're particularly well placed to meet the growing demand for self-care as healthcare systems come under increasing pressure We're using data and technology to further improve our in-market execution. we're using data and technology to further improve our in-market execution In the past 12 months, our R&D teams have been using proprietary GenAI tools that take real-time consumer feedback into account country by country to better understand the success of our new product launches and apply these learnings to other markets. in the past 12 months our r&d teams have been using proprietary genai tools that take real-time consumer feedback into account country by country to better understand the success of our new product launches and apply these learnings to other markets We've also deployed a new CRM tool for European pharmacies, offering advanced detailing capabilities and AI-driven assortment optimization, and we're driving sustained category leadership across channels. we've also deployed a new crm tool for european pharmacies offering advanced detailing capabilities and ai-driven assortment optimization and we're driving sustained category leadership across channels Our discounter teams have helped build differentiated product ranges, enabling us to gain share in this high-growth channel. And we're using our partnership with Dragonfly AI to predict the likelihood of our product images standing out on Amazon and other e-commerce platforms. Finally, North America, which accounted for 26% of Core Reckitt revenues in 2024. We see so much opportunity across this area, but I don't believe we're yet executing at our full potential. We have work to do to leverage our proven track record of creating and building iconic power brands and winning with our customers. We're investing in supply chain resilience for future growth. This includes the creation of a brand new OTC manufacturing site in Wilson, North Carolina, as well as material upgrades to our St. Peters factory that will enable increased production of our Lysol products. Our discounter teams have helped build differentiated product ranges, enabling us to gain share in this high-growth channel. our discounter teams have helped build differentiated product ranges enabling us to gain share in this high-growth channel And we're using our partnership with Dragonfly AI to predict the likelihood of our product images standing out on Amazon and other e-commerce platforms. and we're using our partnership with dragonfly ai to predict the likelihood of our product images standing out on amazon and other e-commerce platforms Finally, North America, which accounted for 26% of Core Reckitt revenues in 2024. finally north america which accounted for 26% of core reckitt revenues in 2024 We see so much opportunity across this area, but I don't believe we're yet executing at our full potential. we see so much opportunity across this area but i don't believe we're yet executing at our full potential We have work to do to leverage our proven track record of creating and building iconic power brands and winning with our customers. we have work to do to leverage our proven track record of creating and building iconic power brands and winning with our customers We're investing in supply chain resilience for future growth. we're investing in supply chain resilience for future growth This includes the creation of a brand new OTC manufacturing site in Wilson, North Carolina, as well as material upgrades to our St. Peters factory that will enable increased production of our Lysol products. this includes the creation of a brand new otc manufacturing site in wilson north carolina as well as material upgrades to our st peters factory that will enable increased production of our lysol products We're accelerating growth in key categories by addressing unmet needs by broadening the shoulders of our iconic brands. An example being Lysol, a predominantly North American brand, which had a strong growth year in 2024, taking share powered by the success of our innovation platforms. It has successfully moved from being a surface care brand to a known category creator, first with laundry sanitizer starting in 2017, and then Lysol Air Sanitizer starting in 2023. Since the launch of Lysol Air Sanitizer, we've seen strong momentum driven by two key factors. First, positive consumer reception reflected in healthy repeat rates. We now hold the second highest ranking SKU in dollars in the instant action category. Consumers see the value of Lysol Air Sanitizer not only for sanitizing the air, but also for effectively addressing odors, a major need in the air care category. We're accelerating growth in key categories by addressing unmet needs by broadening the shoulders of our iconic brands. we're accelerating growth in key categories by addressing unmet needs by broadening the shoulders of our iconic brands An example being Lysol, a predominantly North American brand, which had a strong growth year in 2024, taking share powered by the success of our innovation platforms. an example being lysol a predominantly north american brand which had a strong growth year in 2024 taking share powered by the success of our innovation platforms It has successfully moved from being a surface care brand to a known category creator, first with laundry sanitizer starting in 2017, and then Lysol Air Sanitizer starting in 2023. it has successfully moved from being a surface care brand to a known category creator first with laundry sanitizer starting in 2017 and then lysol air sanitizer starting in 2023 Since the launch of Lysol Air Sanitizer, we've seen strong momentum driven by two key factors. since the launch of lysol air sanitizer we've seen strong momentum driven by two key factors First, positive consumer reception reflected in healthy repeat rates. first positive consumer reception reflected in healthy repeat rates We now hold the second highest ranking SKU in dollars in the instant action category. we now hold the second highest ranking sku in dollars in the instant action category Consumers see the value of Lysol Air Sanitizer not only for sanitizing the air, but also for effectively addressing odors, a major need in the air care category. consumers see the value of lysol air sanitizer not only for sanitizing the air but also for effectively addressing odors a major need in the air care category This gives us a long runway for growth, with household penetration reaching 4% by year-end. Second, best-in-class execution. We have doubled our range on shelf in key retailers, unlocked off-shelf location displays, and secured twin packs and seasonal promo for early 2025. As a result, Lysol Air Sanitizer accounted for over 20% of total category growth in 2024, a clear demonstration of how Reckitt's innovation and execution can drive market leadership. There is a lot to do as we move through 2025 and beyond, but the future is an exciting one, which leads me to guidance starting with 2025. As Shannon said, this will be an important year for Reckitt as we execute the second year of our strategic plan. We are targeting 3%-4% net revenue like-for-like growth in Core Reckitt. This gives us a long runway for growth, with household penetration reaching 4% by year-end. this gives us a long runway for growth with household penetration reaching 4% by year-end Second, best-in-class execution. second best-in-class execution We have doubled our range on shelf in key retailers, unlocked off-shelf location displays, and secured twin packs and seasonal promo for early 2025. we have doubled our range on shelf in key retailers unlocked off-shelf location displays and secured twin packs and seasonal promo for early 2025 As a result, Lysol Air Sanitizer accounted for over 20% of total category growth in 2024, a clear demonstration of how Reckitt's innovation and execution can drive market leadership. as a result lysol air sanitizer accounted for over 20% of total category growth in 2024 a clear demonstration of how reckitt's innovation and execution can drive market leadership There is a lot to do as we move through 2025 and beyond, but the future is an exciting one, which leads me to guidance starting with 2025. there is a lot to do as we move through 2025 and beyond but the future is an exciting one which leads me to guidance starting with 2025 As Shannon said, this will be an important year for Reckitt as we execute the second year of our strategic plan. as shannon said this will be an important year for reckitt as we execute the second year of our strategic plan We are targeting 3%-4% net revenue like-for-like growth in Core Reckitt. we are targeting 3%-4% net revenue like-for-like growth in core reckitt With our Fuel for Growth program moving into the second year, we expect group-adjusted operating profit to continue to grow ahead of net revenue. This will deliver another year of EPS growth. Looking out beyond 2025, we have the portfolio, the geographic footprint, and the execution capabilities for Core Reckitt to consistently deliver four to five% like-for-like growth from 2026. We will look to achieve this while consistently delivering annual EPS growth and creating value for shareholders. In 2024, we set out our strategy, and we have made a good start. Our progress over the last 12 months has not only contributed to solid financial results; it has also strengthened our position for the year ahead and beyond. With our Fuel for Growth program moving into the second year, we expect group-adjusted operating profit to continue to grow ahead of net revenue. with our fuel for growth program moving into the second year we expect group-adjusted operating profit to continue to grow ahead of net revenue This will deliver another year of EPS growth. this will deliver another year of eps growth Looking out beyond 2025, we have the portfolio, the geographic footprint, and the execution capabilities for Core Reckitt to consistently deliver four to five% like-for-like growth from 2026. looking out beyond 2025 we have the portfolio the geographic footprint and the execution capabilities for core reckitt to consistently deliver four to five% like-for-like growth from 2026 We will look to achieve this while consistently delivering annual EPS growth and creating value for shareholders. we will look to achieve this while consistently delivering annual eps growth and creating value for shareholders In 2024, we set out our strategy, and we have made a good start. in 2024 we set out our strategy and we have made a good start Our progress over the last 12 months has not only contributed to solid financial results; it has also strengthened our position for the year ahead and beyond. our progress over the last 12 months has not only contributed to solid financial results it has also strengthened our position for the year ahead and beyond If you leave with only one takeaway today, it should be this: the work to fundamentally reposition Reckitt is well underway, and we're focused on our portfolio of outstanding power brands to drive continued top and bottom line growth. Thank you for listening. Shannon and I will now be happy to take your questions. If you leave with only one takeaway today, it should be this: the work to fundamentally reposition Reckitt is well underway, and we're focused on our portfolio of outstanding power brands to drive continued top and bottom line growth. if you leave with only one takeaway today it should be this the work to fundamentally reposition reckitt is well underway and we're focused on our portfolio of outstanding power brands to drive continued top and bottom line growth Thank you for listening. thank you for listening Shannon and I will now be happy to take your questions. shannon and i will now be happy to take your questions

Speaker 3: Hey, guys. Rashad Kawan from Morgan Stanley. Thanks for the presentation. A couple for me, please. First, on the four-to-five midterm guide, obviously running a little lower than what you guys have communicated over the past few months. What's driving the thought process there? Is there anything structural that's changed over the last couple of months? Is there an element of conservatism there? And then the second part, just on the building blocks to margin for 2025. If I think about gross margins being up strongly in 2024, what's the expectation for 2025? Hey, guys. hey guys Rashad Kawan from Morgan Stanley. rashad kawan from morgan stanley Thanks for the presentation. thanks for the presentation A couple for me, please. a couple for me please First, on the four-to-five midterm guide, obviously running a little lower than what you guys have communicated over the past few months. first on the four-to-five midterm guide obviously running a little lower than what you guys have communicated over the past few months What's driving the thought process there? what's driving the thought process there Is there anything structural that's changed over the last couple of months? is there anything structural that's changed over the last couple of months Is there an element of conservatism there? is there an element of conservatism there And then the second part, just on the building blocks to margin for 2025. and then the second part just on the building blocks to margin for 2025 If I think about gross margins being up strongly in 2024, what's the expectation for 2025? if i think about gross margins being up strongly in 2024 what's the expectation for 2025 Presumably, some BEI spend will be reinvested from whatever savings you generate. So how do you think about the moving parts there? Thank you. Presumably, some BEI spend will be reinvested from whatever savings you generate. presumably some bei spend will be reinvested from whatever savings you generate so So how do you think about the moving parts there? so how do you think about the moving parts there Thank you. thank you

Speaker 8: Okay, sounds good. I'll take number one. Maybe Shannon, you want to take two? Perfect. Yeah, so good question. Look, I said at the half year last year that the medium-term outlook for the Core Reckitt portfolio was sort of a 5% growth rate. Now, obviously, when we get to guide, as we are today, we like to provide a range. We thought carefully about this, and we're obviously seeing a somewhat uncertain macro environment. So even though we're quite confident in our portfolio, as you can tell, we have competitive momentum, we have a strong innovation pipeline, our innovation is working in the market. Okay, sounds good. okay sounds good I'll take number one. i'll take number one Maybe Shannon, you want to take two? maybe shannon you want to take two Perfect. perfect Yeah, so good question. yeah so good question Look, I said at the half year last year that the medium-term outlook for the Core Reckitt portfolio was sort of a 5% growth rate. look i said at the half year last year that the medium-term outlook for the core reckitt portfolio was sort of a 5% growth rate Now, obviously, when we get to guide, as we are today, we like to provide a range. now obviously when we get to guide as we are today we like to provide a range We thought carefully about this, and we're obviously seeing a somewhat uncertain macro environment. we thought carefully about this and we're obviously seeing a somewhat uncertain macro environment So even though we're quite confident in our portfolio, as you can tell, we have competitive momentum, we have a strong innovation pipeline, our innovation is working in the market. so even though we're quite confident in our portfolio as you can tell we have competitive momentum we have a strong innovation pipeline our innovation is working in the market Even though we have that confidence, we thought it would be prudent to take into account that the external environment is uncertain, and there are certain headwinds in some of our markets that we see in terms of consumer confidence. So let's say it's what we would like to think of as a prudent guide. We know that our portfolio can deliver at the 5% like-for-like growth level, and we know that in a great year, it could do better than that. We have done better than that historically sometimes when everything comes together. But we wanted to set a guide here that we feel very confident about. And obviously, if we do exceed it, I think that'll be a positive thing for everyone and a good beat. So we have every intention of trying to do that. But as we guide today, we thought this was a prudent guide. Even though we have that confidence, we thought it would be prudent to take into account that the external environment is uncertain, and there are certain headwinds in some of our markets that we see in terms of consumer confidence. even though we have that confidence we thought it would be prudent to take into account that the external environment is uncertain and there are certain headwinds in some of our markets that we see in terms of consumer confidence So let's say it's what we would like to think of as a prudent guide. so let's say it's what we would like to think of as a prudent guide We know that our portfolio can deliver at the 5% like-for-like growth level, and we know that in a great year, it could do better than that. we know that our portfolio can deliver at the 5% like-for-like growth level and we know that in a great year it could do better than that We have done better than that historically sometimes when everything comes together. we have done better than that historically sometimes when everything comes together But we wanted to set a guide here that we feel very confident about. but we wanted to set a guide here that we feel very confident about And obviously, if we do exceed it, I think that'll be a positive thing for everyone and a good beat. and obviously if we do exceed it i think that'll be a positive thing for everyone and a good beat So we have every intention of trying to do that. so we have every intention of trying to do that But as we guide today, we thought this was a prudent guide. but as we guide today we thought this was a prudent guide

Speaker 4: Great. So on your questions around the building blocks around operating margin and how to think about that for 2025, I'd start with gross margins, which did expand in 2024. As we've discussed before, we have industry-leading gross margins. I'm not looking to drive further expansion of our gross margins in 2025. And so then, if you think through the other elements feeding into operating margin, the fixed cost program that we've talked about, we've called out 300 basis points of improvement. We delivered an underlying 60 basis points in 2024. I think the delivery of the remainder of that would be spread in a somewhat linear fashion over the coming three years. And then I would expect, very similar to what we did in 2024, a portion of that we'll want to reinvest back into our BEI to really ensure we're driving top-line growth in a sustainable way. Great. great So on your questions around the building blocks around operating margin and how to think about that for 2025, I'd start with gross margins, which did expand in 2024. so on your questions around the building blocks around operating margin and how to think about that for 2025 i'd start with gross margins which did expand in 2024 As we've discussed before, we have industry-leading gross margins. as we've discussed before we have industry-leading gross margins I'm not looking to drive further expansion of our gross margins in 2025. i'm not looking to drive further expansion of our gross margins in 2025 And so then, if you think through the other elements feeding into operating margin, the fixed cost program that we've talked about, we've called out 300 basis points of improvement. and so then if you think through the other elements feeding into operating margin the fixed cost program that we've talked about we've called out 300 basis points of improvement We delivered an underlying 60 basis points in 2024. we delivered an underlying 60 basis points in 2024 I think the delivery of the remainder of that would be spread in a somewhat linear fashion over the coming three years. i think the delivery of the remainder of that would be spread in a somewhat linear fashion over the coming three years And then I would expect, very similar to what we did in 2024, a portion of that we'll want to reinvest back into our BEI to really ensure we're driving top-line growth in a sustainable way. and then i would expect very similar to what we did in 2024 a portion of that we'll want to reinvest back into our bei to really ensure we're driving top-line growth in a sustainable way Then there'll be a portion that falls through, and that will drive the operating margin expansion. Then there'll be a portion that falls through, and that will drive the operating margin expansion. then there'll be a portion that falls through and that will drive the operating margin expansion

Speaker 10: Thank you. Chris Pitcher from Redburn Atlantic. I mean, following up on the medium term, can you just explain to us what you're trying to tell us in terms of the outlook for operating margin? Because you've not made an explicit comment, well, as you did for this year. You've not said EPS growth above sales. Can you confirm that? And then specific to the medium term, I appreciate it's prudent, but you've effectively made it harder to hit by narrowing the range. Are you telling us you're incredibly confident to four to five, and therefore three would be disappointing in spite of this complicated and disrupted operating environment? Thank you. Thank you. thank you Chris Pitcher from Redburn Atlantic. chris pitcher from redburn atlantic I mean, following up on the medium term, can you just explain to us what you're trying to tell us in terms of the outlook for operating margin? i mean following up on the medium term can you just explain to us what you're trying to tell us in terms of the outlook for operating margin Because you've not made an explicit comment, well, as you did for this year. because you've not made an explicit comment well as you did for this year You've not said EPS growth above sales. you've not said eps growth above sales Can you confirm that? can you confirm that And then specific to the medium term, I appreciate it's prudent, but you've effectively made it harder to hit by narrowing the range. and then specific to the medium term i appreciate it's prudent but you've effectively made it harder to hit by narrowing the range Are you telling us you're incredibly confident to four to five, and therefore three would be disappointing in spite of this complicated and disrupted operating environment? are you telling us you're incredibly confident to four to five and therefore three would be disappointing in spite of this complicated and disrupted operating environment Thank you. thank you

Speaker 8: Yes, I mean, we were setting a medium-term guide. I don't expect the current volatility to be a permanent feature. I hope not. Yes, I mean, we were setting a medium-term guide. yes i mean we were setting a medium-term guide I don't expect the current volatility to be a permanent feature. i don't expect the current volatility to be a permanent feature I hope not. i hope not And we think it's a prudent guide. We feel quite confident that we can hit it. And then, like I said before, we could have widened the range, but then I think I'm not sure we would gain anything. Now we have given ourselves a guide that we feel comfortable with. And if we beat it, I think it's a good thing, right? It's going to be a positive for everyone. Do you want to talk about margin guidance? Any guess? And we think it's a prudent guide. and we think it's a prudent guide We feel quite confident that we can hit it. we feel quite confident that we can hit it And then, like I said before, we could have widened the range, but then I think I'm not sure we would gain anything. and then like i said before we could have widened the range but then i think i'm not sure we would gain anything Now we have given ourselves a guide that we feel comfortable with. now we have given ourselves a guide that we feel comfortable with And if we beat it, I think it's a good thing, right? and if we beat it i think it's a good thing right It's going to be a positive for everyone. it's going to be a positive for everyone Do you want to talk about margin guidance? do you want to talk about margin guidance Any guess? any guess

Speaker 4: Sure. So your questions were both, sorry, there you are, Chris, around the medium-term guide on operating margin as well as EPS? Sure. sure So your questions were both, sorry, there you are, Chris, around the medium-term guide on operating margin as well as EPS? so your questions were both sorry there you are, chris around the medium-term guide on operating margin as well as eps

Speaker 10: Yes. I mean, as you say, you've given no clarity on whether you expect margins to grow or indeed EPS to grow ahead of sales. If you could just confirm that. Yes. yes I mean, as you say, you've given no clarity on whether you expect margins to grow or indeed EPS to grow ahead of sales. i mean as you say you've given no clarity on whether you expect margins to grow or indeed eps to grow ahead of sales If you could just confirm that. if you could just confirm that

Speaker 4: Sure. So we do expect operating margins to grow. Sure. sure So we do expect operating margins to grow. so we do expect operating margins to grow And I think we've reiterated, or we've intended to reiterate, that we'll be growing profits ahead of revenue. And so we're standing by that long-term financial model, which would then have our operating margins expanding over time. From an EPS standpoint, we're very focused on EPS growth year-on-year. I wouldn't want to guide it to whether it will be ahead of or behind of revenue. But for us, we realize that that's an element of shareholder value creation that's been missing over the past three to five years. And so we intend to deliver that on an annual basis moving forward. And I think we've reiterated, or we've intended to reiterate, that we'll be growing profits ahead of revenue. and i think we've reiterated or we've intended to reiterate that we'll be growing profits ahead of revenue And so we're standing by that long-term financial model, which would then have our operating margins expanding over time. and so we're standing by that long-term financial model which would then have our operating margins expanding over time From an EPS standpoint, we're very focused on EPS growth year-on-year. from an eps standpoint we're very focused on eps growth year-on-year I wouldn't want to guide it to whether it will be ahead of or behind of revenue. i wouldn't want to guide it to whether it will be ahead of or behind of revenue But for us, we realize that that's an element of shareholder value creation that's been missing over the past three to five years. but for us we realize that that's an element of shareholder value creation that's been missing over the past three to five years And so we intend to deliver that on an annual basis moving forward. and so we intend to deliver that on an annual basis moving forward

Speaker 8: And just to clarify, that would be the dilution from future transactions that is causing that position. And just to clarify, that would be the dilution from future transactions that is causing that position. and just to clarify that would be the dilution from future transactions that is causing that position

Speaker 4: Well, so the guide that we provided just to ensure clarity for 2025 assumes that we have all three operating segments for the full course of the year. Well, so the guide that we provided just to ensure clarity for 2025 assumes that we have all three operating segments for the full course of the year. well so the guide that we provided just to ensure clarity for 2025 assumes that we have all three operating segments for the full course of the year And so that's just to make sure we're all operating off the same page for 2025. As you think moving forward, as we execute against an Essential Home transaction, obviously that would bring with it some level of dilution. But we've also been clear that we have a fixed cost program underway that we expect to hit the 19% regardless of, or in the event of, even as we dispose of those businesses. So we have a number of levers around EPS where we feel confident over the long term of being able to deliver sustainable EPS growth. And so that's just to make sure we're all operating off the same page for 2025. and so that's just to make sure we're all operating off the same page for 2025 As you think moving forward, as we execute against an Essential Home transaction, obviously that would bring with it some level of dilution. as you think moving forward as we execute against an essential home transaction obviously that would bring with it some level of dilution But we've also been clear that we have a fixed cost program underway that we expect to hit the 19% regardless of, or in the event of, even as we dispose of those businesses. but we've also been clear that we have a fixed cost program underway that we expect to hit the 19% regardless of or in the event of even as we dispose of those businesses So we have a number of levers around EPS where we feel confident over the long term of being able to deliver sustainable EPS growth. so we have a number of levers around eps where we feel confident over the long term of being able to deliver sustainable eps growth

Speaker 10: Thank you. Very clear. Thank you. Thank you. thank you Very clear. very clear Thank you. thank you

Speaker 7: Hello. David Hayes from Jefferies. Two from me. Just looking back at the 2024, A&P or BEI spent up 30 basis points, but obviously huge gross margin development and the cost saving. Hello. hello David Hayes from Jefferies. david hayes from jefferies Two from me. two from me Just looking back at the 2024, A&P or BEI spent up 30 basis points, but obviously huge gross margin development and the cost saving. just looking back at the 2024 a&p or bei spent up 30 basis points but obviously huge gross margin development and the cost saving So to your point about the outlook strategically, one of the priorities and principles is reinvestment. Was there a kind of a decision not to reinvest as much back in the second half? And is that something—was there a reason for that? And is that something that kind of accelerates more for reasons as well as you're going to 2026, 2025 even? And then secondly, just in terms of the guidance, there's no mention of dissynergies, which I guess you can't really forecast at the moment until you know when and how, etc., the business gets divested in terms of Essential Home. But is the guidance assuming no dissynergy? And I guess when I'm asking that, we assume you're getting it ready to be standalone almost day one. So will you be duplicating costs to be ready to do that towards the end of the year? So to your point about the outlook strategically, one of the priorities and principles is reinvestment. so to your point about the outlook strategically one of the priorities and principles is reinvestment Was there a kind of a decision not to reinvest as much back in the second half? was there a kind of a decision not to reinvest as much back in the second half And is that something—was there a reason for that? and is that something—was there a reason for that And is that something that kind of accelerates more for reasons as well as you're going to 2026, 2025 even? and is that something that kind of accelerates more for reasons as well as you're going to 2026 2025 even And then secondly, just in terms of the guidance, there's no mention of dissynergies, which I guess you can't really forecast at the moment until you know when and how, etc., the business gets divested in terms of Essential Home. and then secondly just in terms of the guidance there's no mention of dissynergies which i guess you can't really forecast at the moment until you know when and how etc the business gets divested in terms of essential home But is the guidance assuming no dissynergy? but is the guidance assuming no dissynergy And I guess when I'm asking that, we assume you're getting it ready to be standalone almost day one. and i guess when i'm asking that we assume you're getting it ready to be standalone almost day one So will you be duplicating costs to be ready to do that towards the end of the year? so will you be duplicating costs to be ready to do that towards the end of the year And is there an element of that in the guidance, or will we get that to offset? And we'll get more information on that as you kind of go through the process. And have you got some kind of guide as to what that dissynergy might look like through the year? Thank you. And is there an element of that in the guidance, or will we get that to offset? and is there an element of that in the guidance or will we get that to offset And we'll get more information on that as you kind of go through the process. and we'll get more information on that as you kind of go through the process And have you got some kind of guide as to what that dissynergy might look like through the year? and have you got some kind of guide as to what that dissynergy might look like through the year Thank you. thank you

Speaker 8: So let me start on BEI. So good question. I think we definitely invested more in our business last year. We always assess these investment opportunities on a case-by-case basis. So it's not a sort of a broad sweeping decision. It's, does this investment make sense? Should we accelerate this brand? Do we have innovation or new news that we want to invest behind to reach more consumers? And we arrived at the conclusions that we arrived at, and I feel good about that. So let me start on BEI. so let me start on bei So good question. so good question I think we definitely invested more in our business last year. i think we definitely invested more in our business last year We always assess these investment opportunities on a case-by-case basis. we always assess these investment opportunities on a case-by-case basis So it's not a sort of a broad sweeping decision. so it's not a sort of a broad sweeping decision It's, does this investment make sense? it's does this investment make sense Should we accelerate this brand? should we accelerate this brand Do we have innovation or new news that we want to invest behind to reach more consumers? do we have innovation or new news that we want to invest behind to reach more consumers And we arrived at the conclusions that we arrived at, and I feel good about that. and we arrived at the conclusions that we arrived at and i feel good about that We'd like to see a steady increase in our BEI investment, but I would think of it as steady, and it's not a place where we want to overinvest necessarily and have wasteful spending. We've seen examples of that in our industry, and it doesn't necessarily drive results, so I think we will be smart about it. We'll invest in particular behind innovation, and when we're creating new categories like air sanitizer, where we have real new news to share to educate consumers, we're going to invest behind that. So I think the good news is with the plan that we have, the guide that we have, and the Fuel for Growth program, which is successfully delivering in its first year, we have the room to invest, so we clearly have a good amount of room to invest. We'd like to see a steady increase in our BEI investment, but I would think of it as steady, and it's not a place where we want to overinvest necessarily and have wasteful spending. we'd like to see a steady increase in our bei investment but i would think of it as steady and it's not a place where we want to overinvest necessarily and have wasteful spending We've seen examples of that in our industry, and it doesn't necessarily drive results, so I think we will be smart about it. we've seen examples of that in our industry and it doesn't necessarily drive results so i think we will be smart about it We'll invest in particular behind innovation, and when we're creating new categories like air sanitizer, where we have real new news to share to educate consumers, we're going to invest behind that. we'll invest in particular behind innovation and when we're creating new categories like air sanitizer where we have real new news to share to educate consumers we're going to invest behind that So I think the good news is with the plan that we have, the guide that we have, and the Fuel for Growth program, which is successfully delivering in its first year, we have the room to invest, so we clearly have a good amount of room to invest. so i think the good news is with the plan that we have the guide that we have and the fuel for growth program which is successfully delivering in its first year we have the room to invest so we clearly have a good amount of room to invest And we think that's a good place to be for us as management to judge growth opportunities that we can invest behind. So I would expect it to increase. The other offset is we have quite a good productivity program that also applies to marketing. And so we also generate savings that offset some of those increases in the year. So sometimes we actually deploy more working spend than you can see in that number. On the separations, look, we're working on this at the moment. We've made very good progress. I would say the process of setting them up is on track. And I've been pleased with the work that the new leadership teams have done. We are sizing the financial impacts. We're also trying to be smart about not setting up very redundant structures for no reason until they're needed. And we think that's a good place to be for us as management to judge growth opportunities that we can invest behind. and we think that's a good place to be for us as management to judge growth opportunities that we can invest behind So I would expect it to increase. so i would expect it to increase The other offset is we have quite a good productivity program that also applies to marketing. the other offset is we have quite a good productivity program that also applies to marketing And so we also generate savings that offset some of those increases in the year. and so we also generate savings that offset some of those increases in the year So sometimes we actually deploy more working spend than you can see in that number. so sometimes we actually deploy more working spend than you can see in that number On the separations, look, we're working on this at the moment. on the separations look we're working on this at the moment We've made very good progress. we've made very good progress I would say the process of setting them up is on track. i would say the process of setting them up is on track And I've been pleased with the work that the new leadership teams have done. and i've been pleased with the work that the new leadership teams have done We are sizing the financial impacts. we are sizing the financial impacts We're also trying to be smart about not setting up very redundant structures for no reason until they're needed. we're also trying to be smart about not setting up very redundant structures for no reason until they're needed But obviously, we want to get ahead of any eventual day one where the company has to be fully self-sufficient. So we're working through that at a great level of detail. And we are costing those impacts. Our guide, as Shannon said, assumed that we effectively operate these segments through 2025, just because even if there is a transaction, obviously it takes time for a transaction to close. But obviously, we want to get ahead of any eventual day one where the company has to be fully self-sufficient. but obviously we want to get ahead of any eventual day one where the company has to be fully self-sufficient So we're working through that at a great level of detail. so we're working through that at a great level of detail And we are costing those impacts. and we are costing those impacts Our guide, as Shannon said, assumed that we effectively operate these segments through 2025, just because even if there is a transaction, obviously it takes time for a transaction to close. our guide as shannon said assumed that we effectively operate these segments through 2025 just because even if there is a transaction obviously it takes time for a transaction to close

Speaker 4: And then the intention is that when we have a deal to announce, a signed deal on Essential Home, we'll clearly provide more quantitative understanding of dissynergies. And then the intention is that when we have a deal to announce, a signed deal on Essential Home, we'll clearly provide more quantitative understanding of dissynergies. and then the intention is that when we have a deal to announce a signed deal on essential home we'll clearly provide more quantitative understanding of dissynergies

Speaker 7: But you wouldn't see dissynergies this year then, based on at the moment, I guess, the timing and the, But you wouldn't see dissynergies this year then, based on at the moment, I guess, the timing and the, but you wouldn't see dissynergies this year then based on at the moment i guess the timing and the

Speaker 4: yeah, I mean, obviously it depends on deal timing and how that comes together. yeah, I mean, obviously it depends on deal timing and how that comes together. yeah i mean obviously it depends on deal timing and how that comes together

Speaker 8: But what I would tell you is we're driving such significant savings in the Core that I don't expect that to be a big impact. But what I would tell you is we're driving such significant savings in the Core that I don't expect that to be a big impact. but what i would tell you is we're driving such significant savings in the core that i don't expect that to be a big impact

Speaker 7: Thank you so much. Thank you so much. thank you so much

Speaker 2: Hi there, Jeremy Fialko, HSBC. So a couple of questions for me. So first of all, just on the 2025 guide for the Core Reckitt business, can you run through some of the specific factors that lead to that being below your medium-term guide? And then the second point would be on Biofreeze. So you've now taken two write-downs on that business, if I remember correctly. I think at the time this looked a very exciting acquisition. It took you into an area of pain that you were not competing in. The brand looked like it had good equity, a very good growth track record. Hi there, Jeremy Fialko, HSBC. hi there jeremy fialko hsbc So a couple of questions for me. so a couple of questions for me So first of all, just on the 2025 guide for the Core Reckitt business, can you run through some of the specific factors that lead to that being below your medium-term guide? so first of all just on the 2025 guide for the core reckitt business can you run through some of the specific factors that lead to that being below your medium-term guide And then the second point would be on Biofreeze. and then the second point would be on biofreeze So you've now taken two write-downs on that business, if I remember correctly. so you've now taken two write-downs on that business if i remember correctly I think at the time this looked a very exciting acquisition. i think at the time this looked a very exciting acquisition It took you into an area of pain that you were not competing in. it took you into an area of pain that you were not competing in The brand looked like it had good equity, a very good growth track record. the brand looked like it had good equity a very good growth track record So can you talk about, okay, why this acquisition hasn't worked out as you had expected it to? And also then what you think you can do with the brand given where it is today and what contribution topical pain can make to your self-care business? Thanks. So can you talk about, okay, why this acquisition hasn't worked out as you had expected it to? so can you talk about okay why this acquisition hasn't worked out as you had expected it to And also then what you think you can do with the brand given where it is today and what contribution topical pain can make to your self-care business? and also then what you think you can do with the brand given where it is today and what contribution topical pain can make to your self-care business Thanks. thanks

Speaker 8: Sure. Why don't I start on Biofreeze and then maybe hand to you for the factors in the guide? So look, I will tell you, first of all, we're very happy that we have Biofreeze in the portfolio. Biofreeze is a brand that fits our criteria for our portfolio. It's a strong equity. It's a category that grew very fast for a long time. Sure. sure Why don't I start on Biofreeze and then maybe hand to you for the factors in the guide? why don't i start on biofreeze and then maybe hand to you for the factors in the guide So look, I will tell you, first of all, we're very happy that we have Biofreeze in the portfolio. so look i will tell you first of all we're very happy that we have biofreeze in the portfolio Biofreeze is a brand that fits our criteria for our portfolio. biofreeze is a brand that fits our criteria for our portfolio It's a strong equity. it's a strong equity It's a category that grew very fast for a long time. it's a category that grew very fast for a long time Really what we're facing is a pretty broad-based category issue in topical pain in the U.S. that emerged when we went through this historic COGS spike that we've been through and the consumer came under a lot of pressure. It is true that topical pain is slightly more discretionary as a category, so when consumers are under historic pressure, which they've been over the past few years, they do change their consumption habits. The category slowed significantly during that time. Household penetration is low. These products are highly efficacious, including our Biofreeze products. Biofreeze is a leader in the category. I fully expect the category to return to strong growth as we get to a more normal environment as the consumer recovers from this cost of living crisis and that period of time. Really what we're facing is a pretty broad-based category issue in topical pain in the U.S. that emerged when we went through this historic COGS spike that we've been through and the consumer came under a lot of pressure. really what we're facing is a pretty broad-based category issue in topical pain in the u.s that emerged when we went through this historic cogs spike that we've been through and the consumer came under a lot of pressure It is true that topical pain is slightly more discretionary as a category, so when consumers are under historic pressure, which they've been over the past few years, they do change their consumption habits. it is true that topical pain is slightly more discretionary as a category so when consumers are under historic pressure which they've been over the past few years they do change their consumption habits The category slowed significantly during that time. the category slowed significantly during that time Household penetration is low. household penetration is low These products are highly efficacious, including our Biofreeze products. these products are highly efficacious including our biofreeze products Biofreeze is a leader in the category. biofreeze is a leader in the category I fully expect the category to return to strong growth as we get to a more normal environment as the consumer recovers from this cost of living crisis and that period of time. i fully expect the category to return to strong growth as we get to a more normal environment as the consumer recovers from this cost of living crisis and that period of time We have a strong innovation pipeline behind Biofreeze that I'm very excited about. We are also rolling out Biofreeze in other markets internationally, and we will continue to do that. We have other strategic options to expand the brand that we might share with you at a later date, so all in all, we have a good growth agenda for Biofreeze, but we did run into a significant category slowdown and headwind from the cost of living crisis. Biofreeze is a brand that really thrives on display, and retailers pivoted away from putting this category on display during that time, and we're seeing signs that that's coming back. So while I would have loved to not go through that slowdown, there's nothing structural about the category or Biofreeze that we're worried about. We have a strong innovation pipeline behind Biofreeze that I'm very excited about. we have a strong innovation pipeline behind biofreeze that i'm very excited about We are also rolling out Biofreeze in other markets internationally, and we will continue to do that. we are also rolling out biofreeze in other markets internationally and we will continue to do that We have other strategic options to expand the brand that we might share with you at a later date, so all in all, we have a good growth agenda for Biofreeze, but we did run into a significant category slowdown and headwind from the cost of living crisis. we have other strategic options to expand the brand that we might share with you at a later date so all in all we have a good growth agenda for biofreeze but we did run into a significant category slowdown and headwind from the cost of living crisis Biofreeze is a brand that really thrives on display, and retailers pivoted away from putting this category on display during that time, and we're seeing signs that that's coming back. biofreeze is a brand that really thrives on display and retailers pivoted away from putting this category on display during that time and we're seeing signs that that's coming back So while I would have loved to not go through that slowdown, there's nothing structural about the category or Biofreeze that we're worried about. so while i would have loved to not go through that slowdown there's nothing structural about the category or biofreeze that we're worried about

Speaker 4: Okay. On the guidance for 2025, guiding Core Reckitt at 3%-4%. Okay. okay On the guidance for 2025, guiding Core Reckitt at 3%-4%. on the guidance for 2025 guiding core reckitt at 3%-4% Look, our guide for 2025 reflects our current view of the operating environment, which I would say has a level of uncertainty within it. When we look at tariffs, when we look at consumer confidence, when we look at store traffic, when we look at inflation, there's just a level of uncertainty and volatility that exists across North America and across the globe today that we don't see that or hope that that doesn't persist ongoing. And so that's not necessarily as reflected in the midterm guidance, but for 2025, we thought it was prudent to provide a guide that reflects the current operating environment and provide a guide that we're confident in our ability to deliver. Look, our guide for 2025 reflects our current view of the operating environment, which I would say has a level of uncertainty within it. look our guide for 2025 reflects our current view of the operating environment which i would say has a level of uncertainty within it When we look at tariffs, when we look at consumer confidence, when we look at store traffic, when we look at inflation, there's just a level of uncertainty and volatility that exists across North America and across the globe today that we don't see that or hope that that doesn't persist ongoing. when we look at tariffs when we look at consumer confidence when we look at store traffic when we look at inflation there's just a level of uncertainty and volatility that exists across north america and across the globe today that we don't see that or hope that that doesn't persist ongoing And so that's not necessarily as reflected in the midterm guidance, but for 2025, we thought it was prudent to provide a guide that reflects the current operating environment and provide a guide that we're confident in our ability to deliver. and so that's not necessarily as reflected in the midterm guidance but for 2025 we thought it was prudent to provide a guide that reflects the current operating environment and provide a guide that we're confident in our ability to deliver

Speaker 1: Yes, good morning. Harold Thompson from Chelverton. And just a couple of questions. Yes, good morning. yes good morning Harold Thompson from Chelverton. harold thompson from chelverton And just a couple of questions. and just a couple of questions Kris, you kind of indicated the process of separation was well on the way and kind of getting ready if something comes along. Is there anything you can maybe say about the actual sale process or the interest you're getting or anything like that? I realize you can't say very much, but just anything you can say would be of help. And then, of course, Shannon, you said that EPS delivery was an important part of your journey, something that's been missing in recent years. I think you've been very clear that Essential Home sold effectively for cash. The plan is to return everything to shareholders through buybacks. I just want to make sure that commitment is still there. You're not going to a tangent to acquire growth through M&A again. Kris, you kind of indicated the process of separation was well on the way and kind of getting ready if something comes along. kris you kind of indicated the process of separation was well on the way and kind of getting ready if something comes along Is there anything you can maybe say about the actual sale process or the interest you're getting or anything like that? is there anything you can maybe say about the actual sale process or the interest you're getting or anything like that I realize you can't say very much, but just anything you can say would be of help. i realize you can't say very much but just anything you can say would be of help And then, of course, Shannon, you said that EPS delivery was an important part of your journey, something that's been missing in recent years. and then of course shannon you said that eps delivery was an important part of your journey something that's been missing in recent years I think you've been very clear that Essential Home sold effectively for cash. i think you've been very clear that essential home sold effectively for cash The plan is to return everything to shareholders through buybacks. the plan is to return everything to shareholders through buybacks I just want to make sure that commitment is still there. i just want to make sure that commitment is still there You're not going to a tangent to acquire growth through M&A again. you're not going to a tangent to acquire growth through m&a again

Speaker 8: Good questions. Good questions. good questions So on the process, I'd love to be able to say more, but I think you understand that where we are in the process doesn't lend itself for me to be overly specific. What I can say is the overall process is on track. And I'm feeling good about it. And that's about it. When we have news to share in terms of something concrete, we will, of course, provide full transparency and visibility and share what we think the financial impacts of it is. So on the process, I'd love to be able to say more, but I think you understand that where we are in the process doesn't lend itself for me to be overly specific. so on the process i'd love to be able to say more but i think you understand that where we are in the process doesn't lend itself for me to be overly specific What I can say is the overall process is on track. what i can say is the overall process is on track And I'm feeling good about it. and i'm feeling good about it And that's about it. and that's about it When we have news to share in terms of something concrete, we will, of course, provide full transparency and visibility and share what we think the financial impacts of it is. when we have news to share in terms of something concrete we will of course provide full transparency and visibility and share what we think the financial impacts of it is

Speaker 4: Then the messaging around proceeds from Essential Home remains very consistent. So we expect to return all excess cash from that transaction to our shareholders. We've not yet decided whether that will happen through a share buyback or whether that would happen through a special dividend. So we'll have more to share on that when we get to the point of announcing a transaction. Then the messaging around proceeds from Essential Home remains very consistent. then the messaging around proceeds from essential home remains very consistent So we expect to return all excess cash from that transaction to our shareholders. so we expect to return all excess cash from that transaction to our shareholders We've not yet decided whether that will happen through a share buyback or whether that would happen through a special dividend. we've not yet decided whether that will happen through a share buyback or whether that would happen through a special dividend So we'll have more to share on that when we get to the point of announcing a transaction. so we'll have more to share on that when we get to the point of announcing a transaction As far as your question on M&A, I think we would agree our plates are quite full. So the intention is to return that cash to shareholders. As far as your question on M&A, I think we would agree our plates are quite full. as far as your question on m&a i think we would agree our plates are quite full So the intention is to return that cash to shareholders. so the intention is to return that cash to shareholders

Speaker 1: Very clear. Thank you. Very clear. very clear Thank you. thank you

Speaker 5: James Edwardes Jones from RBC. Just following up on Harold's point, are you double running a spinoff process in case the sale you can't dispose to a third party for an acceptable price? And could you say a bit about tariffs, what the potential impact on your business would be? James Edwardes Jones from RBC. james edwardes jones from rbc Just following up on Harold's point, are you double running a spinoff process in case the sale you can't dispose to a third party for an acceptable price? just following up on harold's point are you double running a spinoff process in case the sale you can't dispose to a third party for an acceptable price And could you say a bit about tariffs, what the potential impact on your business would be? and could you say a bit about tariffs what the potential impact on your business would be

Speaker 8: Yeah, I think I can address both. So we're going to do the right thing for Reckitt shareholders, and we're looking at everything under the sun to do that. Okay, so we're open-minded and quite rational about that. At the same time, as I indicated before, we thought there'd be good interest in these assets, and so far there is. Yeah, I think I can address both. yeah i think i can address both So we're going to do the right thing for Reckitt shareholders, and we're looking at everything under the sun to do that. so we're going to do the right thing for reckitt shareholders and we're looking at everything under the sun to do that Okay, so we're open-minded and quite rational about that. okay so we're open-minded and quite rational about that At the same time, as I indicated before, we thought there'd be good interest in these assets, and so far there is. at the same time as i indicated before we thought there'd be good interest in these assets and so far there is So that's probably all I'll say on the first one. On tariffs, it is a very dynamic picture, as I know you know. And therefore, it's hard to be sort of equivocal about anything. We have been looking at it, and we have been looking at scenarios from what might happen and what impact it would have on our business. The good news is it's not a significant impact to our business. Yes, there will be some, but we source most of our products from the regions we operate in. I think you saw some of the metrics on the slides probably about that. And we're making investments to further localize production. And frankly, we were doing that before the tariffs came because it's just a good thing for the business. It's a good business idea. So that's probably all I'll say on the first one. so that's probably all i'll say on the first one On tariffs, it is a very dynamic picture, as I know you know. on tariffs it is a very dynamic picture as i know you know And therefore, it's hard to be sort of equivocal about anything. and therefore it's hard to be sort of equivocal about anything We have been looking at it, and we have been looking at scenarios from what might happen and what impact it would have on our business. we have been looking at it and we have been looking at scenarios from what might happen and what impact it would have on our business The good news is it's not a significant impact to our business. the good news is it's not a significant impact to our business Yes, there will be some, but we source most of our products from the regions we operate in. yes there will be some but we source most of our products from the regions we operate in I think you saw some of the metrics on the slides probably about that. i think you saw some of the metrics on the slides probably about that And we're making investments to further localize production. and we're making investments to further localize production And frankly, we were doing that before the tariffs came because it's just a good thing for the business. and frankly we were doing that before the tariffs came because it's just a good thing for the business It's a good business idea. it's a good business idea We will look at these tariffs, whatever they turn out to be, and we will have a number of levers to mitigate the impact. We are not as exposed as many other industries and probably other companies. And we have quite a good set of levers to pull. We talked about our gross margins, how high they are, how much productivity we have flowing through our P&L. And obviously, we have pricing power, as we've shown over the past years, if it comes to that. But I think it's premature for us to say anything quantitative because it changes every day. We will look at these tariffs, whatever they turn out to be, and we will have a number of levers to mitigate the impact. we will look at these tariffs whatever they turn out to be and we will have a number of levers to mitigate the impact We are not as exposed as many other industries and probably other companies. we are not as exposed as many other industries and probably other companies And we have quite a good set of levers to pull. and we have quite a good set of levers to pull We talked about our gross margins, how high they are, how much productivity we have flowing through our P&L. we talked about our gross margins how high they are how much productivity we have flowing through our p&l And obviously, we have pricing power, as we've shown over the past years, if it comes to that. and obviously we have pricing power as we've shown over the past years if it comes to that But I think it's premature for us to say anything quantitative because it changes every day. but i think it's premature for us to say anything quantitative because it changes every day

Speaker 12: Thanks very much. It's Iain Simpson at Barclays. Just a couple of phasing questions, if I could, in terms of how we think about 2025. So you talked about Essential Home being low single digit for the year, but being negative in H1. Thanks very much. thanks very much It's Iain Simpson at Barclays. it's iain simpson at barclays Just a couple of phasing questions, if I could, in terms of how we think about 2025. just a couple of phasing questions if i could in terms of how we think about 2025 So you talked about Essential Home being low single digit for the year, but being negative in H1. so you talked about essential home being low single digit for the year but being negative in h1 Could you just touch on why Essential Home will be negative in H1, please? And then secondly, when we think about the margin phasing for 2025, I'm mindful that you seem to have restated the H1 2024 margin. I think that's gone up a little bit. I was just wondering how we should think about the, you've said core margin expansion for 2025, but I was just wondering any guide you give us as to the phasing of that. Thanks very much. Could you just touch on why Essential Home will be negative in H1, please? could you just touch on why essential home will be negative in h1 please And then secondly, when we think about the margin phasing for 2025, I'm mindful that you seem to have restated the H1 2024 margin. and then secondly when we think about the margin phasing for 2025 i'm mindful that you seem to have restated the h1 2024 margin I think that's gone up a little bit. i think that's gone up a little bit I was just wondering how we should think about the, you've said core margin expansion for 2025, but I was just wondering any guide you give us as to the phasing of that. i was just wondering how we should think about the you've said core margin expansion for 2025 but i was just wondering any guide you give us as to the phasing of that Thanks very much. thanks very much

Speaker 4: Sure. So first question on Essential Home, why would it be negative like-for-like in the front half? There's really two significant drivers of that. The first, Iain, that I'd share is we're lapping a really strong pest season from a year ago. And so it's a bit of a comp in what we're facing there. Sure. sure So first question on Essential Home, why would it be negative like-for-like in the front half? so first question on essential home why would it be negative like-for-like in the front half There's really two significant drivers of that. there's really two significant drivers of that The first, Iain, that I'd share is we're lapping a really strong pest season from a year ago. the first iain that i'd share is we're lapping a really strong pest season from a year ago And so it's a bit of a comp in what we're facing there. and so it's a bit of a comp in what we're facing there The second would be, and we talked about it quite a bit last year, air care in the U.S. continues to be a very competitive marketplace for us. And so that continues to be an area where we're working hard to compete, but where it's a tough battle right now for that business. As far as margin phasing, we don't provide guidance on operating margin by half. And so I'd sort of leave you to thinking through the guidance we've provided on how top line phases across the year for the group. It will be a little bit back half weighted. For Core Reckitt, we expect top line growth to be balanced across half one and half two. The second would be, and we talked about it quite a bit last year, air care in the U.S. continues to be a very competitive marketplace for us. the second would be and we talked about it quite a bit last year air care in the u.s continues to be a very competitive marketplace for us And so that continues to be an area where we're working hard to compete, but where it's a tough battle right now for that business. and so that continues to be an area where we're working hard to compete but where it's a tough battle right now for that business As far as margin phasing, we don't provide guidance on operating margin by half. as far as margin phasing we don't provide guidance on operating margin by half And so I'd sort of leave you to thinking through the guidance we've provided on how top line phases across the year for the group. and so i'd sort of leave you to thinking through the guidance we've provided on how top line phases across the year for the group It will be a little bit back half weighted. it will be a little bit back half weighted For Core Reckitt, we expect top line growth to be balanced across half one and half two. for core reckitt we expect top line growth to be balanced across half one and half two

Speaker 12: Okay, thanks. Okay, thanks. okay thanks

Speaker 11: Thank you. Morning, Tom Sykes from Deutsche. Excuse me. Thank you. thank you Morning, Tom Sykes from Deutsche. morning tom sykes from deutsche Excuse me. excuse me Firstly, just on the margin improvement, how much of the margin improvement did come from Essential Home, particularly in the second half of the year, please? And then just on transactional effects at the end of the year, post the election, there was obviously a very strong move in the dollar. You import a lot into the U.S. Perhaps it was slightly surprising how much you do import into the U.S. You gave that interview that said it was 40%, I think, of product sold. So I just wonder, how much do you hedge that transactional exposure? And what was that hedging year-on-year? And how should we think about transactional effects gains going into 2025, please? Firstly, just on the margin improvement, how much of the margin improvement did come from Essential Home, particularly in the second half of the year, please? firstly just on the margin improvement how much of the margin improvement did come from essential home particularly in the second half of the year please And then just on transactional effects at the end of the year, post the election, there was obviously a very strong move in the dollar. and then just on transactional effects at the end of the year post the election there was obviously a very strong move in the dollar You import a lot into the U.S. you import a lot into the u.s Perhaps it was slightly surprising how much you do import into the U.S. perhaps it was slightly surprising how much you do import into the u.s You gave that interview that said it was 40%, I think, of product sold. you gave that interview that said it was 40% i think of product sold So I just wonder, how much do you hedge that transactional exposure? so i just wonder how much do you hedge that transactional exposure And what was that hedging year-on-year? and what was that hedging year-on-year And how should we think about transactional effects gains going into 2025, please? and how should we think about transactional effects gains going into 2025 please

Speaker 4: You don't want to take the transactional effects hedging question. You don't want to take the transactional effects hedging question. you don't want to take the transactional effects hedging question

Speaker 8: I'll be happy to take that. I assumed you were. I'll be happy to take that. i'll be happy to take that I assumed you were. i assumed you were

Speaker 4: Okay, so first question, Essential Home, how much margin expansion in 2024 is your question was driven by Essential Home. I think we'd actually have to circle back to you on that because we weren't operating the business in 2024 through a lens of Essential Home. So I honestly don't top of mind have an answer for you on that. And I'm probably going to take a follow-up on the transactional effects hedging of imports into the U.S., as I don't have an answer for you top of mind on that, but I think IR can follow up with you. Apologies. Okay, so first question, Essential Home, how much margin expansion in 2024 is your question was driven by Essential Home. okay so first question essential home how much margin expansion in 2024 is your question was driven by essential home I think we'd actually have to circle back to you on that because we weren't operating the business in 2024 through a lens of Essential Home. i think we'd actually have to circle back to you on that because we weren't operating the business in 2024 through a lens of essential home So I honestly don't top of mind have an answer for you on that. so i honestly don't top of mind have an answer for you on that And I'm probably going to take a follow-up on the transactional effects hedging of imports into the U.S., as I don't have an answer for you top of mind on that, but I think IR can follow up with you. and i'm probably going to take a follow-up on the transactional effects hedging of imports into the u.s as i don't have an answer for you top of mind on that but i think ir can follow up with you Apologies. apologies

Speaker 6: Thanks. It's Callum Elliott at Bernstein. I just wanted to come back to BEI because I think you said, Kris, that you want a steady increase, but the 30 basis points increase in fiscal 2024, I think you were plus 100 basis points in the first half. Thanks. thanks It's Callum Elliott at Bernstein. it's callum elliott at bernstein I just wanted to come back to BEI because I think you said, Kris, that you want a steady increase, but the 30 basis points increase in fiscal 2024, I think you were plus 100 basis points in the first half. i just wanted to come back to bei because i think you said kris that you want a steady increase but the 30 basis points increase in fiscal 2024 i think you were plus 100 basis points in the first half So I think it implies down 50 basis points, something like that in the second half of the year, which is obviously the opposite of a steady increase. So maybe you can just flesh out for us, should we just be thinking about this as a phasing thing into H? So I think it implies down 50 basis points, something like that in the second half of the year, which is obviously the opposite of a steady increase. so i think it implies down 50 basis points something like that in the second half of the year which is obviously the opposite of a steady increase So maybe you can just flesh out for us, should we just be thinking about this as a phasing thing into H? so maybe you can just flesh out for us should we just be thinking about this as a phasing thing into h

Speaker 8: Absolutely. Absolutely. absolutely

Speaker 6: Or should we be thinking about it as some kind of steer as to the speed of the reinvestment over the medium term? Or should we be thinking about it as some kind of steer as to the speed of the reinvestment over the medium term? or should we be thinking about it as some kind of steer as to the speed of the reinvestment over the medium term

Speaker 8: No, so when I say steady increase, I'm talking about annual steady increases. So if you're modeling our BEI percentage year over year, I would model a steady increase. But like I said before, it's not steady as in steady every month because we invest behind big moments when we have a big launch, when we have new news to share, a new claim, whatever, a reset of a shelf, that's when we invest. No, so when I say steady increase, I'm talking about annual steady increases. no so when i say steady increase i'm talking about annual steady increases So if you're modeling our BEI percentage year over year, I would model a steady increase. so if you're modeling our bei percentage year over year i would model a steady increase But like I said before, it's not steady as in steady every month because we invest behind big moments when we have a big launch, when we have new news to share, a new claim, whatever, a reset of a shelf, that's when we invest. but like i said before it's not steady as in steady every month because we invest behind big moments when we have a big launch when we have new news to share a new claim whatever a reset of a shelf that's when we invest So actually, oftentimes we make big investments in BEI in the spring because we're launching new innovation across markets. So I wouldn't interpret anything into that. Our commitment to invest in BEI is high. And we have areas where we can invest. And like I said, we have innovation where we can invest behind it. So I intend for that to be a steady increase year-on-year, but not like a linear steady month-by-month increase because that wouldn't be rational. So actually, oftentimes we make big investments in BEI in the spring because we're launching new innovation across markets. so actually oftentimes we make big investments in bei in the spring because we're launching new innovation across markets So I wouldn't interpret anything into that. so i wouldn't interpret anything into that Our commitment to invest in BEI is high. our commitment to invest in bei is high And we have areas where we can invest. and we have areas where we can invest And like I said, we have innovation where we can invest behind it. and like i said we have innovation where we can invest behind it So I intend for that to be a steady increase year-on-year, but not like a linear steady month-by-month increase because that wouldn't be rational. so i intend for that to be a steady increase year-on-year but not like a linear steady month-by-month increase because that wouldn't be rational

Speaker 6: Thanks. And I have a follow-up for Shannon on free cash flow. You spoke very positively about the free cash flow, Shannon, but I think it's actually down year-on-year. And conversion, while still strong in the kind of low 90s, I reckon it used to be exceptional, and low 90s is maybe sort of more in keeping with where some of your other CPG peers are. Thanks. thanks And I have a follow-up for Shannon on free cash flow. and i have a follow-up for shannon on free cash flow You spoke very positively about the free cash flow, Shannon, but I think it's actually down year-on-year. you spoke very positively about the free cash flow shannon but i think it's actually down year-on-year And conversion, while still strong in the kind of low 90s, I reckon it used to be exceptional, and low 90s is maybe sort of more in keeping with where some of your other CPG peers are. and conversion while still strong in the kind of low 90s i reckon it used to be exceptional and low 90s is maybe sort of more in keeping with where some of your other cpg peers are So my question is, should we interpret the positive tone around free cash flow despite the negative year-on-year growth as you're happy with 90% free cash flow conversion, and that's where Reckitt is going forwards? Or can we expect it to get back to 100% plus? So my question is, should we interpret the positive tone around free cash flow despite the negative year-on-year growth as you're happy with 90% free cash flow conversion, and that's where Reckitt is going forwards? so my question is should we interpret the positive tone around free cash flow despite the negative year-on-year growth as you're happy with 90% free cash flow conversion and that's where reckitt is going forwards Or can we expect it to get back to 100% plus? or can we expect it to get back to 100% plus

Speaker 4: I don't know that I'm ready to commit that we'll get back to 100% plus. What I'd say is we continue to have a high level of focus on free cash flow across management, across Kris and myself. We believe it's actually a unique characteristic of Reckitt, and we want to continue to drive that. And so I would expect that it would get back up into the mid-90s over time. And so I wouldn't take this as a change in strategy or some sort of permanent change in direction. I don't know that I'm ready to commit that we'll get back to 100% plus. i don't know that i'm ready to commit that we'll get back to 100% plus What I'd say is we continue to have a high level of focus on free cash flow across management, across Kris and myself. what i'd say is we continue to have a high level of focus on free cash flow across management across kris and myself We believe it's actually a unique characteristic of Reckitt, and we want to continue to drive that. we believe it's actually a unique characteristic of reckitt and we want to continue to drive that And so I would expect that it would get back up into the mid-90s over time. and so i would expect that it would get back up into the mid-90s over time And so I wouldn't take this as a change in strategy or some sort of permanent change in direction. and so i wouldn't take this as a change in strategy or some sort of permanent change in direction

Speaker 6: Yeah, thank you. Yeah, I've just got one follow-up. Yeah, thank you. yeah thank you Yeah, I've just got one follow-up. yeah i've just got one follow-up I mean, when you showed the slide with how your portfolio of key brands looks like, it looks very impressive. There's, of course, a large element of them which are kind of OTC related. And in the past, it was always argued that rolling out OTC brands kind of more globally and filling up the white spaces was quite a slow and arduous process because of all the regulatory barriers and so on and so forth. And yet, when I look at the presentation on some of the innovations, they also look quite exciting. So how easy will it be to leverage effectively your new portfolio or slim down portfolio to deliver that growth? Because it's actually got constraints, regulatory constraints, to be able to roll that out. So how does that balance out? I mean, when you showed the slide with how your portfolio of key brands looks like, it looks very impressive. i mean when you showed the slide with how your portfolio of key brands looks like it looks very impressive There's, of course, a large element of them which are kind of OTC related. there's of course a large element of them which are kind of otc related And in the past, it was always argued that rolling out OTC brands kind of more globally and filling up the white spaces was quite a slow and arduous process because of all the regulatory barriers and so on and so forth. and in the past it was always argued that rolling out otc brands kind of more globally and filling up the white spaces was quite a slow and arduous process because of all the regulatory barriers and so on and so forth And yet, when I look at the presentation on some of the innovations, they also look quite exciting. and yet when i look at the presentation on some of the innovations they also look quite exciting So how easy will it be to leverage effectively your new portfolio or slim down portfolio to deliver that growth? so how easy will it be to leverage effectively your new portfolio or slim down portfolio to deliver that growth Because it's actually got constraints, regulatory constraints, to be able to roll that out. because it's actually got constraints regulatory constraints to be able to roll that out So how does that balance out? so how does that balance out

Speaker 8: Yeah, that's a great question. Yeah, that's a great question. yeah that's a great question Expanding OTC across the world is a top two priority for the company. This is one of the most attractive things that we can do, but also expanding our OTC portfolios within countries where we already have a trademark and registration where it's easier. The good news is we know how to do this. If you look at some of the brands in our portfolio like Strepsils and Nurofen and Gaviscon, they have realized very strong growth over the past five, 10 years even because we've been able to register them, get them approved, launch the brands in a series of markets around the world. I don't know if it's arduous. It's time-consuming. It is. And there's a fair amount of work and investment in regulatory and other activities, sometimes clinicals that you have to go through in order to go through that process. Expanding OTC across the world is a top two priority for the company. expanding otc across the world is a top two priority for the company This is one of the most attractive things that we can do, but also expanding our OTC portfolios within countries where we already have a trademark and registration where it's easier. this is one of the most attractive things that we can do but also expanding our otc portfolios within countries where we already have a trademark and registration where it's easier The good news is we know how to do this. the good news is we know how to do this If you look at some of the brands in our portfolio like Strepsils and Nurofen and Gaviscon, they have realized very strong growth over the past five, 10 years even because we've been able to register them, get them approved, launch the brands in a series of markets around the world. if you look at some of the brands in our portfolio like strepsils and nurofen and gaviscon they have realized very strong growth over the past five 10 years even because we've been able to register them get them approved launch the brands in a series of markets around the world I don't know if it's arduous. i don't know if it's arduous It's time-consuming. it's time-consuming It is. it is And there's a fair amount of work and investment in regulatory and other activities, sometimes clinicals that you have to go through in order to go through that process. and there's a fair amount of work and investment in regulatory and other activities sometimes clinicals that you have to go through in order to go through that process But what's nice about the OTC business, and it's a little bit different than most other businesses in the consumer sector, is once you're there and once you have the registration and once you've built a trusted brand, it's a real moat. And so what's great about the OTC business is those investments, you have to make them with a long-term view, but if you make them smartly, considered, and sustained, then you get some very good returns in the end. And that's how we're running the OTC business. So this is a major priority for us. Now, it doesn't always involve stretching brands because actually the premium of having global brands in OTC is not very high. What matters is did you have a strong brand in the local market and that the medical professionals and pharmacies understand the benefit of the product and recommend it. But what's nice about the OTC business, and it's a little bit different than most other businesses in the consumer sector, is once you're there and once you have the registration and once you've built a trusted brand, it's a real moat. but what's nice about the otc business and it's a little bit different than most other businesses in the consumer sector is once you're there and once you have the registration and once you've built a trusted brand it's a real moat And so what's great about the OTC business is those investments, you have to make them with a long-term view, but if you make them smartly, considered, and sustained, then you get some very good returns in the end. and so what's great about the otc business is those investments you have to make them with a long-term view but if you make them smartly considered and sustained then you get some very good returns in the end And that's how we're running the OTC business. and that's how we're running the otc business So this is a major priority for us. so this is a major priority for us Now, it doesn't always involve stretching brands because actually the premium of having global brands in OTC is not very high. now it doesn't always involve stretching brands because actually the premium of having global brands in otc is not very high What matters is did you have a strong brand in the local market and that the medical professionals and pharmacies understand the benefit of the product and recommend it. what matters is did you have a strong brand in the local market and that the medical professionals and pharmacies understand the benefit of the product and recommend it So that's how I would look at it. So it's a major priority for us. It does take time, but we're good at it. So that's how I would look at it. so that's how i would look at it So it's a major priority for us. so it's a major priority for us It does take time, but we're good at it. it does take time but we're good at it

Speaker 6: Hi, that's right. A follow-up now. Apologies for all the medium-term stuff at the start. In terms of the structure of the new Reckitt business, when the strategy was set, when you first joined, Kris, part of the investment was to build out your distribution network, build out sales, target new markets. The pandemic gave you more funds to do that. The growth in brands like Lysol, etc., seemed to be more about the category extension within existing markets. How do you see the business now geographically for the sales force you've got in terms of driving Finish, Lysol, Dettol into new markets? Is that delivering as hoped? Hi, that's right. hi that's right A follow-up now. a follow-up now Apologies for all the medium-term stuff at the start. apologies for all the medium-term stuff at the start In terms of the structure of the new Reckitt business, when the strategy was set, when you first joined, Kris, part of the investment was to build out your distribution network, build out sales, target new markets. in terms of the structure of the new reckitt business when the strategy was set when you first joined kris part of the investment was to build out your distribution network build out sales target new markets The pandemic gave you more funds to do that. the pandemic gave you more funds to do that The growth in brands like Lysol, etc., seemed to be more about the category extension within existing markets. the growth in brands like lysol etc seemed to be more about the category extension within existing markets How do you see the business now geographically for the sales force you've got in terms of driving Finish, Lysol, Dettol into new markets? how do you see the business now geographically for the sales force you've got in terms of driving finish lysol dettol into new markets Is that delivering as hoped? is that delivering as hoped

Speaker 8: Yeah, so we have seen really significant distribution gains in a number of markets over that timeframe. Yeah, so we have seen really significant distribution gains in a number of markets over that timeframe. yeah so we have seen really significant distribution gains in a number of markets over that timeframe We've also fundamentally elevated our relationships with our most important retail partners during that timeframe. And all of that is something that stands us in good stead and has benefited the business. As I look ahead from where we sit today, I would say the biggest distribution opportunities we have by far is in emerging markets. And there is a long, decade-long runway for growth in terms of driving that distribution, driving out a broader assortment, reaching more outlets. In places like Africa, we're just getting started, but it actually is a very exciting opportunity for us. Latin America, we still have significant opportunity. And in India, even though India is one of our strongest businesses where we have expanded coverage for years, we still have the expansion opportunities that I discussed today. Increasingly, though, the expansion also happens on the screen. So it's not just about expanding physical stores. We've also fundamentally elevated our relationships with our most important retail partners during that timeframe. we've also fundamentally elevated our relationships with our most important retail partners during that timeframe And all of that is something that stands us in good stead and has benefited the business. and all of that is something that stands us in good stead and has benefited the business As I look ahead from where we sit today, I would say the biggest distribution opportunities we have by far is in emerging markets. as i look ahead from where we sit today i would say the biggest distribution opportunities we have by far is in emerging markets And there is a long, decade-long runway for growth in terms of driving that distribution, driving out a broader assortment, reaching more outlets. and there is a long decade-long runway for growth in terms of driving that distribution driving out a broader assortment reaching more outlets In places like Africa, we're just getting started, but it actually is a very exciting opportunity for us. in places like africa we're just getting started but it actually is a very exciting opportunity for us Latin America, we still have significant opportunity. latin america we still have significant opportunity And in India, even though India is one of our strongest businesses where we have expanded coverage for years, we still have the expansion opportunities that I discussed today. and in india even though india is one of our strongest businesses where we have expanded coverage for years we still have the expansion opportunities that i discussed today Increasingly, though, the expansion also happens on the screen. increasingly though the expansion also happens on the screen So it's not just about expanding physical stores. so it's not just about expanding physical stores And I would say in Europe and in North America, our focus is very much to win on the screen. And not just with Amazon, with everyone, right? Every one of our large retailers have become omnichannel retailers pretty much. And some of them are extremely good at it. And so right now, we're also very focused on winning on the screen with our big retailers. All the big US retailers are quite sophisticated at this now, and it's a real focus for us. And that'll also happen in Europe over time. It is starting to happen a little slower than the US. So that's a major distribution opportunity in developed markets. But distribution remains a really big pillar of our growth, and it's a really nice way to drive volume growth and household penetration, and we'll remain focused on it. And I would say in Europe and in North America, our focus is very much to win on the screen. and i would say in europe and in north america our focus is very much to win on the screen And not just with Amazon, with everyone, right? and not just with amazon with everyone right Every one of our large retailers have become omnichannel retailers pretty much. every one of our large retailers have become omnichannel retailers pretty much And some of them are extremely good at it. and some of them are extremely good at it And so right now, we're also very focused on winning on the screen with our big retailers. and so right now we're also very focused on winning on the screen with our big retailers All the big US retailers are quite sophisticated at this now, and it's a real focus for us. all the big us retailers are quite sophisticated at this now and it's a real focus for us And that'll also happen in Europe over time. and that'll also happen in europe over time It is starting to happen a little slower than the US. it is starting to happen a little slower than the us So that's a major distribution opportunity in developed markets. so that's a major distribution opportunity in developed markets But distribution remains a really big pillar of our growth, and it's a really nice way to drive volume growth and household penetration, and we'll remain focused on it. but distribution remains a really big pillar of our growth and it's a really nice way to drive volume growth and household penetration and we'll remain focused on it A couple of follow-ups for me as well if I can. So firstly, just on the cost saving, can you talk a bit about the reaction internally to that? If you look at some of the postings on various websites, there is talk about distracting and disconcertingness. I mean, is that something that you worry gets more of a theme as you try and do even more cost saving? And the other thing you talked about, headcount reduction within the savings. Can you kind of give us a sense of headcount reduction to date and what the actual plan is for headcount over the sort of the whole three-year period? And then just coming back to the guidance again, sorry, on 2025, this modest or cautious, prudent guide of being slightly below the midterm for the reasons you mentioned. A couple of follow-ups for me as well if I can. a couple of follow-ups for me as well if i can So firstly, just on the cost saving, can you talk a bit about the reaction internally to that? so firstly just on the cost saving can you talk a bit about the reaction internally to that If you look at some of the postings on various websites, there is talk about distracting and disconcertingness. if you look at some of the postings on various websites there is talk about distracting and disconcertingness I mean, is that something that you worry gets more of a theme as you try and do even more cost saving? i mean is that something that you worry gets more of a theme as you try and do even more cost saving And the other thing you talked about, headcount reduction within the savings. and the other thing you talked about headcount reduction within the savings Can you kind of give us a sense of headcount reduction to date and what the actual plan is for headcount over the sort of the whole three-year period? can you kind of give us a sense of headcount reduction to date and what the actual plan is for headcount over the sort of the whole three-year period And then just coming back to the guidance again, sorry, on 2025, this modest or cautious, prudent guide of being slightly below the midterm for the reasons you mentioned. and then just coming back to the guidance again sorry on 2025 this modest or cautious prudent guide of being slightly below the midterm for the reasons you mentioned I guess you've got an easy comp, you would think, in the fourth quarter against the weak cold and flu season. And at the moment, the data shows that everyone in America seems to be sick suddenly, having been not sick through the fourth quarter. So just what is the assumption in terms of the cold-flu dynamic within that three to four? Do you expect a normalized season or do you think weaker gain just in case and it could be upside? Thanks. I guess you've got an easy comp, you would think, in the fourth quarter against the weak cold and flu season. i guess you've got an easy comp you would think in the fourth quarter against the weak cold and flu season And at the moment, the data shows that everyone in America seems to be sick suddenly, having been not sick through the fourth quarter. and at the moment the data shows that everyone in america seems to be sick suddenly having been not sick through the fourth quarter So just what is the assumption in terms of the cold-flu dynamic within that three to four? so just what is the assumption in terms of the cold-flu dynamic within that three to four Do you expect a normalized season or do you think weaker gain just in case and it could be upside? do you expect a normalized season or do you think weaker gain just in case and it could be upside Thanks. thanks Okay, so three here. Let's start with the maybe last one. Look, you have to remember that as seasons go, we actually ship the bulk of volumes just like our peers. That's how the industry works. We ship in the fall. So the initial shipments happen in the fall, and they happen to plan. Okay, so three here. okay so three here Let's start with the maybe last one. let's start with the maybe last one Look, you have to remember that as seasons go, we actually ship the bulk of volumes just like our peers. look you have to remember that as seasons go we actually ship the bulk of volumes just like our peers That's how the industry works. that's how the industry works We ship in the fall. we ship in the fall So the initial shipments happen in the fall, and they happen to plan. so the initial shipments happen in the fall and they happen to plan We tend to ship to an average season unless retailers want to stock up, and then they make those choices. And that's what happened in the fall. What didn't happen in the fall is replenishment orders because there was not much of a season, as you said. It was unseasonably warm in the U.S. for most of Q4, and people simply weren't getting sick at a normal rate. And that has changed. And so in Q1, the peak has shifted into Q1. That's why our seasonal OTC business did what it did, just like it did with our peers. And yes, then you would expect the retailers would sell through that inventory, and then they judge when they want to replenish. And that's what we're going to see here in this month, and we'll know more about that. We tend to ship to an average season unless retailers want to stock up, and then they make those choices. we tend to ship to an average season unless retailers want to stock up and then they make those choices And that's what happened in the fall. and that's what happened in the fall What didn't happen in the fall is replenishment orders because there was not much of a season, as you said. what didn't happen in the fall is replenishment orders because there was not much of a season as you said It was unseasonably warm in the U.S. for most of Q4, and people simply weren't getting sick at a normal rate. it was unseasonably warm in the u.s for most of q4 and people simply weren't getting sick at a normal rate And that has changed. and that has changed And so in Q1, the peak has shifted into Q1. and so in q1 the peak has shifted into q1 That's why our seasonal OTC business did what it did, just like it did with our peers. that's why our seasonal otc business did what it did just like it did with our peers And yes, then you would expect the retailers would sell through that inventory, and then they judge when they want to replenish. and yes then you would expect the retailers would sell through that inventory and then they judge when they want to replenish And that's what we're going to see here in this month, and we'll know more about that. and that's what we're going to see here in this month and we'll know more about that In terms of our guide, therefore, I mean, yes, you would say from a sellout standpoint, from a POS standpoint, there's probably a benign lap in Q4, but it doesn't translate directly to shipments for the reasons that I just talked about. In terms of headcount, we haven't shared any numbers in part because we don't have any final numbers because we're going through an extended process of redesigning, simplifying, and optimizing our business. We have quantified those benefits in the numbers that Shannon has shared repeatedly on Fuel for Growth. And so that gives you a sense of magnitude. This is not small. What I can give you is a sense of magnitudes at certain layers of the organization where we have a lot of visibility now to what we're doing. We have simplified our management structure significantly. In terms of our guide, therefore, I mean, yes, you would say from a sellout standpoint, from a POS standpoint, there's probably a benign lap in Q4, but it doesn't translate directly to shipments for the reasons that I just talked about. in terms of our guide therefore i mean yes you would say from a sellout standpoint from a pos standpoint there's probably a benign lap in q4 but it doesn't translate directly to shipments for the reasons that i just talked about In terms of headcount, we haven't shared any numbers in part because we don't have any final numbers because we're going through an extended process of redesigning, simplifying, and optimizing our business. in terms of headcount we haven't shared any numbers in part because we don't have any final numbers because we're going through an extended process of redesigning simplifying and optimizing our business We have quantified those benefits in the numbers that Shannon has shared repeatedly on Fuel for Growth. we have quantified those benefits in the numbers that shannon has shared repeatedly on fuel for growth And so that gives you a sense of magnitude. and so that gives you a sense of magnitude This is not small. this is not small What I can give you is a sense of magnitudes at certain layers of the organization where we have a lot of visibility now to what we're doing. what i can give you is a sense of magnitudes at certain layers of the organization where we have a lot of visibility now to what we're doing We have simplified our management structure significantly. we have simplified our management structure significantly And as I talked about, we've gone from five to three layers of management in the business, which is a real benefit. And by the way, our people feel very good about this. Our people were tired of the complexity of the prior model and could see that there were too many leaders in the business. And it was actually clouding to some extent clear and fast decision-making and accountability. So that initiative enjoys broad-based support, and we have reduced our senior leadership ranks something like 15%-20% already, and we're not done. And that's because we want to simplify our company. We want to simplify the business, and we think it makes it better. Now, in terms of can it be distracting, I think we had a pretty open conversation in the summer of last year about this. And as I talked about, we've gone from five to three layers of management in the business, which is a real benefit. and as i talked about we've gone from five to three layers of management in the business which is a real benefit And by the way, our people feel very good about this. and by the way our people feel very good about this Our people were tired of the complexity of the prior model and could see that there were too many leaders in the business. our people were tired of the complexity of the prior model and could see that there were too many leaders in the business And it was actually clouding to some extent clear and fast decision-making and accountability. and it was actually clouding to some extent clear and fast decision-making and accountability So that initiative enjoys broad-based support, and we have reduced our senior leadership ranks something like 15%-20% already, and we're not done. so that initiative enjoys broad-based support and we have reduced our senior leadership ranks something like 15%-20% already and we're not done And that's because we want to simplify our company. and that's because we want to simplify our company We want to simplify the business, and we think it makes it better. we want to simplify the business and we think it makes it better Now, in terms of can it be distracting, I think we had a pretty open conversation in the summer of last year about this. now in terms of can it be distracting i think we had a pretty open conversation in the summer of last year about this Of course, when you undertake large-scale change, there's always the possibility of some distraction, and that's a fact of these kinds of programs. But there's a way to do it where you minimize that and where you have early warning systems and you detect it. And so we have put in place significant structures to oversee the change and enable the change and track the change. And we measure that at a fairly granular level and quite frequently. And we and the group executive meet on it weekly. So we're pretty close to what's going on, and we're watching it. I wouldn't tell you that there's not something that could go wrong somewhere that I cannot guarantee, but what I can say is that we will mitigate it, whatever it is. And so far, that has not been the case. Of course, when you undertake large-scale change, there's always the possibility of some distraction, and that's a fact of these kinds of programs. of course when you undertake large-scale change there's always the possibility of some distraction and that's a fact of these kinds of programs But there's a way to do it where you minimize that and where you have early warning systems and you detect it. but there's a way to do it where you minimize that and where you have early warning systems and you detect it And so we have put in place significant structures to oversee the change and enable the change and track the change. and so we have put in place significant structures to oversee the change and enable the change and track the change And we measure that at a fairly granular level and quite frequently. and we measure that at a fairly granular level and quite frequently And we and the group executive meet on it weekly. and we and the group executive meet on it weekly So we're pretty close to what's going on, and we're watching it. so we're pretty close to what's going on and we're watching it I wouldn't tell you that there's not something that could go wrong somewhere that I cannot guarantee, but what I can say is that we will mitigate it, whatever it is. i wouldn't tell you that there's not something that could go wrong somewhere that i cannot guarantee but what i can say is that we will mitigate it whatever it is And so far, that has not been the case. and so far that has not been the case I'm actually very pleased to see the kind of market share momentum we have, the kind of execution I'm seeing in the business, how Fuel for Growth is happening, how our innovation is paying off. That doesn't indicate to me that we have a problem executing while we're doing this, but it is a challenge. And so I think it's a very fair question. Did I miss answering any of your questions? Okay. Okay. I'm actually very pleased to see the kind of market share momentum we have, the kind of execution I'm seeing in the business, how Fuel for Growth is happening, how our innovation is paying off. i'm actually very pleased to see the kind of market share momentum we have the kind of execution i'm seeing in the business how fuel for growth is happening how our innovation is paying off That doesn't indicate to me that we have a problem executing while we're doing this, but it is a challenge. that doesn't indicate to me that we have a problem executing while we're doing this but it is a challenge And so I think it's a very fair question. and so i think it's a very fair question Did I miss answering any of your questions? did i miss answering any of your questions Okay. okay Okay. okay

Speaker 9: There are a few online, and unsurprisingly, some of them are quite long. Who would have thought self-select analysts want to ask long questions? Right. So there's a few on guidance. I mean, I've not seen anything which is different to, I think, what's been asked already. So I'm planning on parking those for now, and we can follow up if people want. So Karel Zoete from Kepler Cheuvreux, I'm asking around some of these. There are a few online, and unsurprisingly, some of them are quite long. there are a few online and unsurprisingly some of them are quite long Who would have thought self-select analysts want to ask long questions? who would have thought self-select analysts want to ask long questions Right. right So there's a few on guidance. so there's a few on guidance I mean, I've not seen anything which is different to, I think, what's been asked already. i mean i've not seen anything which is different to i think what's been asked already So I'm planning on parking those for now, and we can follow up if people want. so i'm planning on parking those for now and we can follow up if people want So Karel Zoete from Kepler Cheuvreux, I'm asking around some of these. so karel zoete from kepler cheuvreux i'm asking around some of these For Hygiene, you mentioned to see balanced volume and price mix for 2025. What's the outlook for the entire company? And then white spaces appear to be a big priority for several power brands. What are the platforms that have the largest potential over the next few years? And then just one on the transactions from a production supply chain point of view, how is the separation of the home care business proceeding? For Hygiene, you mentioned to see balanced volume and price mix for 2025. for hygiene you mentioned to see balanced volume and price mix for 2025 What's the outlook for the entire company? what's the outlook for the entire company And then white spaces appear to be a big priority for several power brands. and then white spaces appear to be a big priority for several power brands What are the platforms that have the largest potential over the next few years? what are the platforms that have the largest potential over the next few years And then just one on the transactions from a production supply chain point of view, how is the separation of the home care business proceeding? and then just one on the transactions from a production supply chain point of view how is the separation of the home care business proceeding

Speaker 4: Do you want me to do price mix? Do you want me to do price mix? do you want me to do price mix

Speaker 8: Sure. Sure. sure

Speaker 4: Okay. As I think about the growth algorithm that we should be seeing moving forward, I would say my expectation is that it will be pretty balanced. And so what you've seen is coming out of 2022, where our top-line growth was very driven by pricing. And I think we all know the history and the reasons why. Okay. okay As I think about the growth algorithm that we should be seeing moving forward, I would say my expectation is that it will be pretty balanced. as i think about the growth algorithm that we should be seeing moving forward i would say my expectation is that it will be pretty balanced And so what you've seen is coming out of 2022, where our top-line growth was very driven by pricing. and so what you've seen is coming out of 2022 where our top-line growth was very driven by pricing And I think we all know the history and the reasons why. and i think we all know the history and the reasons why As we moved through 2023, and as we showed on one of those slides today, moving through 2024, we've sequentially seen improvement across both Health and Hygiene over those two years and gotten to where we're exiting 2024 with a pretty balanced algorithm. When I think about our business going forward, I would expect that year in and year out, we should have a point or two of our growth that's coming from pricing as we price with innovation and as we take strategic pricing in markets and brands where needed. I think we would have a point or two of growth that should be coming from unit volume growth because that's a foundational element of healthy top-line growth. And then I think we should see some top spend that comes through mix year in and year out as we innovate and premiumize across our brands. As we moved through 2023, and as we showed on one of those slides today, moving through 2024, we've sequentially seen improvement across both Health and Hygiene over those two years and gotten to where we're exiting 2024 with a pretty balanced algorithm. as we moved through 2023 and as we showed on one of those slides today moving through 2024 we've sequentially seen improvement across both health and hygiene over those two years and gotten to where we're exiting 2024 with a pretty balanced algorithm When I think about our business going forward, I would expect that year in and year out, we should have a point or two of our growth that's coming from pricing as we price with innovation and as we take strategic pricing in markets and brands where needed. when i think about our business going forward i would expect that year in and year out we should have a point or two of our growth that's coming from pricing as we price with innovation and as we take strategic pricing in markets and brands where needed I think we would have a point or two of growth that should be coming from unit volume growth because that's a foundational element of healthy top-line growth. i think we would have a point or two of growth that should be coming from unit volume growth because that's a foundational element of healthy top-line growth And then I think we should see some top spend that comes through mix year in and year out as we innovate and premiumize across our brands. and then i think we should see some top spend that comes through mix year in and year out as we innovate and premiumize across our brands

Speaker 8: Yeah, I think there was a question about Essential Home manufacturing separation. Did I hear that right? Supply chain separation? Yeah, I think there was a question about Essential Home manufacturing separation. yeah i think there was a question about essential home manufacturing separation Did I hear that right? did i hear that right Supply chain separation? supply chain separation

Speaker 9: Yeah. Yes, Yeah. yeah Yes, yes

Speaker 8: I would say the same thing. We have very capable teams working on this separation at the moment, and they have been working for some time. And that work is progressing well. And I'm very pleased with the work that they've done. And so there's nothing in that work that tells me that there's going to be any roadblocks there or anything. So that's on track. I would say the same thing. i would say the same thing We have very capable teams working on this separation at the moment, and they have been working for some time. we have very capable teams working on this separation at the moment and they have been working for some time And that work is progressing well. and that work is progressing well And I'm very pleased with the work that they've done. and i'm very pleased with the work that they've done And so there's nothing in that work that tells me that there's going to be any roadblocks there or anything. and so there's nothing in that work that tells me that there's going to be any roadblocks there or anything So that's on track. so that's on track

Speaker 9: Perfect. Thank you. Perfect. perfect Thank you. thank you

Speaker 4: White space. White space. white space

Speaker 9: White space, yeah, of course. White space, yeah, of course. white space yeah of course

Speaker 4: White space. White space. white space

Speaker 8: White space from a category or geography standpoint? White space from a category or geography standpoint? white space from a category or geography standpoint

Speaker 9: It was across the platform, so just wonderful. It was across the platform, so just wonderful. it was across the platform so just wonderful

Speaker 8: Oh, yeah. Well, I mean, the good news is, as I went through each of our core categories, you can see that these big innovation platforms that we're investing behind are pervasive. Oh, yeah. oh yeah Well, I mean, the good news is, as I went through each of our core categories, you can see that these big innovation platforms that we're investing behind are pervasive. well i mean the good news is as i went through each of our core categories you can see that these big innovation platforms that we're investing behind are pervasive It's not one brand, one country. It is a broad-based pipeline that we have that we're investing behind. And when we land a successful platform like we did in laundry sanitizer and air sanitizer, polyurethane condoms, and a number of others, when we land one of those, we continue to invest behind it. It doesn't go anywhere. It just compounds. And so that's been our experience. And so therefore, the category priorities that I talked about today are the priorities that we're going to focus on, and they have significant runway for growth. It's not one brand, one country. it's not one brand one country It is a broad-based pipeline that we have that we're investing behind. it is a broad-based pipeline that we have that we're investing behind And when we land a successful platform like we did in laundry sanitizer and air sanitizer, polyurethane condoms, and a number of others, when we land one of those, we continue to invest behind it. and when we land a successful platform like we did in laundry sanitizer and air sanitizer polyurethane condoms and a number of others when we land one of those we continue to invest behind it It doesn't go anywhere. it doesn't go anywhere It just compounds. it just compounds And so that's been our experience. and so that's been our experience And so therefore, the category priorities that I talked about today are the priorities that we're going to focus on, and they have significant runway for growth. and so therefore the category priorities that i talked about today are the priorities that we're going to focus on and they have significant runway for growth

Speaker 9: Perfect. Then I've got a couple from Guillaume at UBS. So one is a clarification on your guidance for operating profit. Is the starting point 24.5, or is it 24.2? So highlighting Mount Vernon. Perfect. perfect Then I've got a couple from Guillaume at UBS. then i've got a couple from guillaume at ubs So one is a clarification on your guidance for operating profit. so one is a clarification on your guidance for operating profit Is the starting point 24.5, or is it 24.2? is the starting point 24.5 or is it 24.2 So highlighting Mount Vernon. so highlighting mount vernon Then, secondly, on Mead Johnson, you expect low single-digit LFL this year, notwithstanding a favorable comp in Q3 and ambition to regain some market share in non-WIC. What are the main factors that we need to think about as we go through the year for Mead Johnson? Then, secondly, on Mead Johnson, you expect low single-digit LFL this year, notwithstanding a favorable comp in Q3 and ambition to regain some market share in non-WIC. then secondly on mead johnson you expect low single-digit lfl this year notwithstanding a favorable comp in q3 and ambition to regain some market share in non-wic What are the main factors that we need to think about as we go through the year for Mead Johnson? what are the main factors that we need to think about as we go through the year for mead johnson

Speaker 4: Okay. Do you want me to do both those? Okay. For operating profit, the starting point should be the 24.2. We're trying to be clear and transparent around what were the benefits that we saw as we had insurance proceeds related to the Mount Vernon tornado and the nutrition business flow through the P&L this year. We'd shared at the half-year the guidance that that was our expectation and that our teams were working hard to get the full proceeds within the fiscal year so that this doesn't become a cross-year dynamic. Okay. okay Do you want me to do both those? do you want me to do both those Okay. okay For operating profit, the starting point should be the 24.2. for operating profit the starting point should be the 24.2 We're trying to be clear and transparent around what were the benefits that we saw as we had insurance proceeds related to the Mount Vernon tornado and the nutrition business flow through the P&L this year. we're trying to be clear and transparent around what were the benefits that we saw as we had insurance proceeds related to the mount vernon tornado and the nutrition business flow through the p&l this year We'd shared at the half-year the guidance that that was our expectation and that our teams were working hard to get the full proceeds within the fiscal year so that this doesn't become a cross-year dynamic. we'd shared at the half-year the guidance that that was our expectation and that our teams were working hard to get the full proceeds within the fiscal year so that this doesn't become a cross-year dynamic So 24.2 would be the answer for the first question. On the Mead Johnson question, low single-digit growth for the year, we expect negative like-for-like in the front half, growth in the back half. There are a few different dynamics that are driving why we would see negative like-for-like for Mead Johnson in the front half. And I'll acknowledge, and we discuss it regularly, it is a complex business because of some of the factors that we've been dealing with. And so there are really three drivers, I think, about that are impacting nutrition's top line in the front half. The first would be continued impact from the tornado. And so we discussed at the half-year and at Q3 the fact that there were some supply gaps because of the tornado. So 24.2 would be the answer for the first question. so 24.2 would be the answer for the first question On the Mead Johnson question, low single-digit growth for the year, we expect negative like-for-like in the front half, growth in the back half. on the mead johnson question low single-digit growth for the year we expect negative like-for-like in the front half growth in the back half There are a few different dynamics that are driving why we would see negative like-for-like for Mead Johnson in the front half. there are a few different dynamics that are driving why we would see negative like-for-like for mead johnson in the front half And I'll acknowledge, and we discuss it regularly, it is a complex business because of some of the factors that we've been dealing with. and i'll acknowledge and we discuss it regularly it is a complex business because of some of the factors that we've been dealing with And so there are really three drivers, I think, about that are impacting nutrition's top line in the front half. and so there are really three drivers i think about that are impacting nutrition's top line in the front half The first would be continued impact from the tornado. the first would be continued impact from the tornado And so we discussed at the half-year and at Q3 the fact that there were some supply gaps because of the tornado. and so we discussed at the half-year and at q3 the fact that there were some supply gaps because of the tornado In a business like nutrition, when you do have periods of time that you have supply gaps, you think about it as losing a cohort of babies. And so I shared the fact that our market share is at the 36%. We fully expect that to build back over the course of the year, but that's a process that takes a little bit of time in a business like infant nutrition. The second would be last year in the front half, we discussed the fact that private label infant nutrition was having supply challenges. And so we were seeing tailwinds and benefits from that in our front-half results, and that seems to have been resolved. So that's now something that we're comping in the front half of this year. In a business like nutrition, when you do have periods of time that you have supply gaps, you think about it as losing a cohort of babies. in a business like nutrition when you do have periods of time that you have supply gaps you think about it as losing a cohort of babies And so I shared the fact that our market share is at the 36%. and so i shared the fact that our market share is at the 36% We fully expect that to build back over the course of the year, but that's a process that takes a little bit of time in a business like infant nutrition. we fully expect that to build back over the course of the year but that's a process that takes a little bit of time in a business like infant nutrition The second would be last year in the front half, we discussed the fact that private label infant nutrition was having supply challenges. the second would be last year in the front half we discussed the fact that private label infant nutrition was having supply challenges And so we were seeing tailwinds and benefits from that in our front-half results, and that seems to have been resolved. and so we were seeing tailwinds and benefits from that in our front-half results and that seems to have been resolved So that's now something that we're comping in the front half of this year. so that's now something that we're comping in the front half of this year And then the other comp issue is really last year in the front half, we were refilling the pipe around Nutramigen coming off of that voluntary recall. And so that's another comp that you have to think about when you look at front-half growth rates versus year ago and versus back-half growth for this year. And then the other comp issue is really last year in the front half, we were refilling the pipe around Nutramigen coming off of that voluntary recall. and then the other comp issue is really last year in the front half we were refilling the pipe around nutramigen coming off of that voluntary recall And so that's another comp that you have to think about when you look at front-half growth rates versus year ago and versus back-half growth for this year. and so that's another comp that you have to think about when you look at front-half growth rates versus year ago and versus back-half growth for this year

Speaker 9: Perfect. All right. I think we're down to the last one. So just to say, so Victoria Petrova from Bank of America asked on guidance. So Reckitt, I think we've touched on that. Likewise, Jeff Stent from BNP asked about North America volumes, and I think we've touched on that and tariffs. And so I think the last one then is another one. It's a follow-up from Guillaume on Q1 guidance, what's driving the soft start to the year in Europe. And then the second part of that is a question around private label. Perfect. perfect All right. all right I think we're down to the last one. i think we're down to the last one So just to say, so Victoria Petrova from Bank of America asked on guidance. so just to say so victoria petrova from bank of america asked on guidance So Reckitt, I think we've touched on that. so reckitt i think we've touched on that Likewise, Jeff Stent from BNP asked about North America volumes, and I think we've touched on that and tariffs. likewise jeff stent from bnp asked about north america volumes and i think we've touched on that and tariffs And so I think the last one then is another one. and so i think the last one then is another one It's a follow-up from Guillaume on Q1 guidance, what's driving the soft start to the year in Europe. it's a follow-up from guillaume on q1 guidance what's driving the soft start to the year in europe And then the second part of that is a question around private label. and then the second part of that is a question around private label Do we see any pressure from private label in the region? Do we see any pressure from private label in the region? do we see any pressure from private label in the region

Speaker 8: Let me take those. So Europe, Q1, we fully expect to have a good year in Europe in 2025. Q1 is flat. We expect it to be flat. Part of that is some phasing of shipments. Part of that is a relatively subdued consumer environment. But we have a really good plan for the year in Europe. We have good innovation launching. I talked about the Nitrile platform as a really key one that will help Durex realize some good growth in Europe. But I feel like it's not a structural issue. It's just a slower start, and sometimes that happens. And the second question was private label. We're not seeing a big impact in our categories from private label. Let me take those. let me take those So Europe, Q1, we fully expect to have a good year in Europe in 2025. so europe q1 we fully expect to have a good year in europe in 2025 Q1 is flat. q1 is flat We expect it to be flat. we expect it to be flat Part of that is some phasing of shipments. part of that is some phasing of shipments Part of that is a relatively subdued consumer environment. part of that is a relatively subdued consumer environment But we have a really good plan for the year in Europe. but we have a really good plan for the year in europe We have good innovation launching. we have good innovation launching I talked about the Nitrile platform as a really key one that will help Durex realize some good growth in Europe. i talked about the nitrile platform as a really key one that will help durex realize some good growth in europe But I feel like it's not a structural issue. but i feel like it's not a structural issue It's just a slower start, and sometimes that happens. it's just a slower start and sometimes that happens And the second question was private label. and the second question was private label We're not seeing a big impact in our categories from private label. we're not seeing a big impact in our categories from private label We did see it spike a bit in certain categories during the cost of living crisis and when consumers were under a lot of pressure. Generally, it's always important to remember that we are a very premium-branded business, and we tend to exist at the higher end of the categories we operate in. And so we are actually at times a little bit less vulnerable to trade down from private label than if you operate in the middle. But anyway, the good news is there's no real issues on the horizon as it pertains to private label. We did see it spike a bit in certain categories during the cost of living crisis and when consumers were under a lot of pressure. we did see it spike a bit in certain categories during the cost of living crisis and when consumers were under a lot of pressure Generally, it's always important to remember that we are a very premium-branded business, and we tend to exist at the higher end of the categories we operate in. generally it's always important to remember that we are a very premium-branded business and we tend to exist at the higher end of the categories we operate in And so we are actually at times a little bit less vulnerable to trade down from private label than if you operate in the middle. and so we are actually at times a little bit less vulnerable to trade down from private label than if you operate in the middle But anyway, the good news is there's no real issues on the horizon as it pertains to private label. but anyway the good news is there's no real issues on the horizon as it pertains to private label

Speaker 9: And that is everything from online, so. And that is everything from online, so. and that is everything from online so

Speaker 8: Okay. Thank you very much. Okay. okay Thank you very much. thank you very much