Reckitt Benckiser Group plc (RKT) Earnings Call Transcript & Summary

Thank you. Good morning. Good afternoon. I'm Celine Pannuti, head of the consumer staple and beverage team in Europe. I will be hosting Reckitt Benckiser session today, and I am pleased to welcome Laxman Narasimhan, CEO of Reckitt Benckiser. Hi, Laxman.

Hey, Celine. How are you? Thank you for having me here.

You're welcome. In fact, Reckitt Benckiser is one of the few consumer goods company that will be presenting at this conference this week. And we'll be hearing from you to go in details about how your portfolio is here to protect, heal and nurture. After, we will do a Q&A session. The audience will be able to ask a question. [Operator Instructions] And without further ado, Laxman, the floor is yours.

Thank you, again. It's really a pleasure to be here for the first time. There are 3 key messages I'd like you to take away from the key messages slide. I hope we can go to that now. Yes. The first one is, as we set out in February last year, I believe RB is a good house in a great neighborhood, and it has the potential to be a great house again. We're in good markets with great growth opportunities. And as I will show, we have the heritage, the brand strength and the capabilities with which we can succeed. Second, we're driving a clear strategy to invest in the business. Rebuild our strengths and improve our execution. And that is essential if we are to become a great house again. And in this respect, we're making strong progress on our way towards the goal of sustainable mid-single-digit revenue growth in the medium term. Third, the global trends driving our markets and growth opportunities are well-aligned around the science platforms and the capabilities that we have in our business. And over these last 12 months, the trends that we see are even more relevant to the portfolio that we have, and they strengthen our growth ambitions. Next slide, please. RB is a global business with very strong credentials in health and hygiene. We have the scale, the reach and the capability of a truly global business. And we serve consumers in over 190 countries. Our product portfolio provides functionality across a spectrum of consumer needs, well supported by strong science base. We have 9 large research centers and 2,600 people working to develop our next-generation of products. Our portfolio is underpinned by an exceptional heritage that goes back over 200 years. The trust in our brands has taken decades to develop. And our company has shaped communities with deep involvement. Our presence in [ highland ] in the north of England is a great example of this company's pedigree as well as the foundations of Mead Johnson in the U.S. and many of our roots in the communities in the Netherlands as well as in other parts of Europe. Next slide, please. Now we are present in large categories with strong sustainable structural growth. But cutting across these are some major megatrends, and it's these megatrends which provide us with tailwinds and shape where we play. These tailwinds give us further opportunity even in the post-COVID world. To start with, the global pressures of urbanization and global warming make the need for hygiene ever higher. As humans collide with biodiversity, we are seeing rapid increases in zoonotic transmission of disease. We saw it with SARS, with MERS, with Zika, et cetera. And in this world, even more so in the future, hygiene is the foundation of health, creating a strong symbiotic relationship for our business. It is entirely visible in the difficult events around us today, which are challenging public health systems. The second thing is the pressures on the government health spending, again, all too visible today and around the world, not just in the U.S., it's reinforcing the trend of self-care. Avoiding one visit of the health care system with the available self-care products as well as with digital information access saves money in developed markets, but also developing markets. Demographics are a tailwind. We benefit from both the increases of youth, coming-of-age as well as aging consumers. Sexual health and well-being is a big societal issue. There are over 1 million transmitted infections daily and 85,000 new HIV infections every day, particularly in sub-Saharan Africa. At the same time, aging creates opportunities for our science platforms. When combined with digital, which is completely transforming what people buy and how they buy it, we can expect large growth in areas like personalized nutrition, wellness and digital health as well as in e-commerce. Finally, all these positive megatrends require solutions that are sustainable. These underlying megatrends are very compelling and will be so for some time to come, and they directly support our presence in hygiene, health and nutrition. And the magnitude of these societal challenges underscores also why our portfolio must not just do well, but also be authentically engaged in doing good. Next slide, please. So we have defined a clear purpose: this purpose of protecting, healing and nurturing in the relentless pursuit of a cleaner and healthier world. We've also defined a fight around which we're developing the business, driving that authenticity with a very clear direction as embodied in our compass that sets the business on a path for growth. Next slide, please. In February, we presented our growth and investment plans with a clear goal to rejuvenate sustainable growth. Successful implementation would see us turning around this business from a track record of mixed performance in these targets to a business consistently delivering strong execution, innovation and brand building that would sustainable -- that would underpin sustainable mid-single-digit growth for the foreseeable future. At the same time, we returned the business over time to mid-20s margins and deliver consistent high single-digit earnings growth. This plan was built around a significant investment program over the next 3 years, largely driven by an enhanced productivity program that would generate savings of GBP 1.3 billion that can be reinvested to enhance capabilities and to drive growth. Next page, please. This strategy is being delivered over 3 phases. The first phase where we are now is the stabilize and perform phase. The second is to perform and build. And the third is outperform, which needs a consistent level of performance. Our investments impact all part of our business. But noticeably or particularly, they impact the capabilities that are necessary for consistently strong execution. For example, in sales, in marketing, in innovation, in price competitiveness and supply chain as well as in sustainability. We're building on existing strengths, like our e-commerce and digital, our established category market units and the exceptional brand equity that have been built up over the many years of support for our brands. But we're also rebuilding muscles that have been underdeveloped for a number of years, particularly around sales and marketing excellence, around product innovation and customer service. Additionally, while we start in a good place, we've also made commitments to ensure that what we do is consistent with our ambitious goals on the environment as well as on social impact and that they are central to our plans. Next page, please. There are 4 key growth drivers that we are focused on across our business and portfolio: driving greater product penetration, market share optimization, developing new places and channels, and opening up new spaces and adjacencies. Let me take you through a few examples of what we've already achieved. First, on increased product penetration. Next slide, please. On penetration. In the U.S., Lysol is developed as a mega brand, adding over 700 basis points of market share in the space of 12 months. But differently, there are around 10 million more households buying Lysol in the U.S. than in the previous year. And you'll see the brand in over half of all homes in the U.S. This is clearly driven in part by the COVID pandemic, but also by the initiatives taken by the team and the foundational improvements we have started to make across our business. Similarly, you see Lysol in India, the brand is called Lysol, in over 10 million households in India year-over-year. A similar story can be to all of Dettol. In India where we're already clear market leaders, our core soap product penetration has increased by nearly 1,100 basis points. And again, we're now in over half the households in the country. These trends are also true in our nutrition business, where Airborne in the U.S. have seen truly exceptional demand, doubling in revenue, thanks to the heightened development of products with immunity benefits. Next page, please. Secondly, I want to touch on market share gains. Our Dettol franchise continues to perform strongly across the world. Further reinforced by the consumer trends during COVID-19. In addition to its leadership position in India, as I mentioned, Dettol soap now has share leadership in the United Arab Emirates, in Saudi Arabia and Malaysia, amongst other countries. In response to this exceptional demand from COVID, we took immediate action to rationalize the number of SKUs, allowing for simplification and optimizing production runs and maximizing capacity. It's only now that many of our SKUs are now coming back and the full range is becoming more available in many of the markets. In nutrition, the challenges in the China infant formula market are well understood, with declining birth rates and a near cessation of cross-border activity from Hong Kong. But we are pleased that our overall share position is supported through innovations in our super high premium product, Enfinitas. Next page, please. Third, we are moving into new places and channels. Our sexual well-being business did have headwinds to the initial lockdown period early last year. But our e-commerce performance was very strong, reflecting the privacy and convenience needs of our consumers. Our partnership with companies such as GLOBO has enhanced the availability of our product with very short lead times in several European metropolitan centers. Nurofen launched the 24-hour medicated plasters in Italy and Germany. Previously, this was only Nurofen for children positioned for us. But now, we're starting to play in the bigger growth spaces. Perhaps the more meaningful opportunity for us is our global business solutions segment and obviously borne out of the COVID environment, whereas we're seeing with clear longevity and sustainability. We have signed partnerships with global leaders in the travel and tourism sectors like Hilton and Avis, seeking to reassure their customers of their hygiene in public spaces, and we will be announcing further such agreements in the coming weeks. Additionally, our e-commerce business across our portfolio had its strongest year ever, and it's becoming an ever more important part of our overall business. Next page, please. Finally, developing new spaces or adjacencies. A good example here is Guardium, an acid reflux control tablet, which leverages the Gaviscon reputation in the broader gastrointestinal space to offer sustained control of heartburn. This PPI-based product has been very successful, swiftly achieving a strong market share position following launch. And finally, Air Wick Essential Mist. This is a product where we broke new ground in the aromatherapy category. It's growing over 50% in the U.S. over the last 12 months. But what is interesting with this particular example is that allied to its strong commercial performance, it is also recognized recognition for its innovation, as you can see on the next slide, please. Alongside Enfamil NeuroPro, Mucinex Fast Max All-in-One and Lysol Laundry Sanitizer, the Air Wick Essential Mist range was one of the 4 RB products recognized as the top 25 breakthrough innovations in this year's U.S. BASES awards, more than any other company in 2020. Next page, please. The heritage of our products and the breadth of our science platforms is a key strength of the business, but it's not one that we have harnessed consistently to date. Our historic approach has been product-led rather than consumer need-driven. We are changing that with the investments we are making today in leadership as well as in research and development. Our focus is on developing science solutions that address specific consumer needs and provide consumer benefits across protect, heal and nurture. On this slide, we have 3 examples of the many consumer need platforms we are addressing. With the resources that we're investing in today in areas like microbiome, surface chemistry, digestive health and others, we have great scope to evolve our portfolio, develop personalized solutions and leverage our reach through digital and e-commerce. Our approach to science relies heavily on amplification with partners. We have relaunched our partners to innovate program with key strategic partners to drive innovation at pace and in a focused manner with several partnership agreements signed. Next page, please. We are already generating benefits from this approach in all 3 of our businesses. Most recently, the launch of an adult nutritional milk product leverages the Mead Johnson's science base and the work we've done on allergy and immunity as well as digestive health. Early progress but with much more to come in the months ahead. Next page, please. Helping us on this journey are the numerous partnerships and investments that we've been developing with the next generation of purpose-led companies. Our strategy here is to develop supportive relationships with the entrepreneurs behind hygiene and health care businesses aligned with our consumer need landscape. Our role is to help with funding, but also provide mentoring and research support, and help with go-to-market scales, particularly around e-commerce and retail engagement. These investments will fuel faster growth and provide a wider range and pipeline of options as to how we develop our business portfolio in the future. Next page, please. Turning briefly to the major market challenge in 2020. I've been very proud of how, as an organization, we've come together to play our part in combating the impact of COVID-19. Our fight for access fund launched in February 2020 has already been mobilized to help deliver real on-the-ground benefits to under-resourced communities around the world. Since then, we have donated the equivalent of 1% of our annual operating profits to fund 20 initiatives across 41 countries with organizations like the CDC foundation, the NHS in the U.K., the UNAIDS effort, the International Rescue Committee as well as the product donations in several countries around the world. Some of our savings from areas like travel have been donated by our teams to local organizations, consistent with our vision. Additionally, we've expressed our strong support for racial equality and instituted 100 4-year scholarships for STEM and public health through the United Negro College Fund as well as directed our Lysol schools program to support 58,000 U.S. Title 1 schools, impacting over 15 million children in the U.S. with the greatest need. Next page, please. We also continue to develop our scientific credentials. Given what's happening in the world around us, it's very clear that thought leadership is needed, particularly around evidence as well as driving behavior change. Earlier last year, we launched the Reckitt Global Hygiene Institute with key partners drawn from outstanding institutions worldwide, from the U.S. all way to China, in medical science, health and education. The aim of this institute is to generate high-quality scientific evidence to inform public health recommendations and promote behaviors that improve global hygiene. Next page, please. Overall, we've had a very strong start to our strategic journey. Key elements of our performance has sustained at the high level shared at our half year results in July. For example, our underlying sales growth has remained strong, ahead of the 11.9% like-for-like growth we reported at that time. In particular, growth has continued to be broad-based, and we've continued to drive productivity, reinvesting the business at a higher rate than what was achieved in the first half. With strong growth and a negative working capital position, our free cash flow has continued to be very strong as well. Next page, please. In light of the better-than-expected start of the year, we decided to step up our investment spending plans as we see opportunities to capture additional growth. Our current plans expand to those that'd be announced in February to invest in price competitiveness where appropriate: build our commercial muscle; invest in research, development and quality; invest in digital and e-commerce; as well as invest in further strengthening supply. In addition, we expanded our growth plans. Which included strengthening our leading position in disinfection with brands like Dettol, Lysol and Sagrotan. These are powerful brands with retail sales of over GBP 3.5 billion and a strong consumer preference; our additional investments focus on expanding and investing in these brands behind growth opportunities in an expanded number of countries as well as in product sub categories. As I mentioned earlier, we also accelerated our digital and e-commerce investments to ensure that we have the forefront of market development, capturing growth in this fast-changing business across all channels and categories. For instance, we're investing in further supply chain capabilities and hiring a significant amount of talent in this environment through targeted recruiting and moving some of our best people internally into functions, supporting the digital and e-commerce growth. Finally, we capitalize on our brand strength by moving into the professional category wide space that I mentioned earlier, including the agreements with companies like Hilton, Avis Budget, JLL and Delta, great examples of a larger set of opportunities. Given the favorable shifts in the environment and our expanded plan and how we expect the world to evolve, we have greater confidence in achieving our medium-term goals that we set out earlier this year. Next page, please. Hopefully, I've been able to demonstrate in this brief snapshot on our business that we are executing and delivering our plan. I believe RB is a good house in a great neighborhood. It's become a better house over the course of last year, and it has the potential to become a great house again. We are in good markets with great growth opportunities, and have the heritage, brand strength and capabilities with which we can succeed again. We're driving a clear strategy to invest in the business, to rebuild our strengths and to improve our execution; essential if we are to become a great house again. We're making strong progress on our plan and are well on our way towards our goal of sustainable mid-single-digit revenue growth in the medium term. Thank you for your attention. And Celine, perhaps we can now address any questions you may have.

Thank you, Laxman. Yes, we are now going to conduct the Q&A session. [Operator Instructions]And I'm going to kick off with probably a broader question on the transformation journey. By and large, 2020 has been a phenomenal year for Reckitt in terms of top line. Yet, if I look at the share price, the market doesn't seem to do that the same way and rather as a one-off benefit, helped really by the antiseptic franchise. And it is fair to say maybe that performance has been a bit more mixed in the rest of the health division as well as in nutrition. So my question is, you've mentioned a lot of the initiative. When do you think we can start to see benefit of this initiative, accelerating growth in these divisions?

I think the first, as you know, it's fair to say clearly that COVID has had positive impact on the disinfectant piece of the portfolio. But one must also recognize that some of the impacts of COVID include the impact, for example, on the flu season, which it did have an impact on it. Early on in the COVID cycle, it had an impact on social interactions, which had an impact on the sexual well-being business as well. What you're beginning to see in the sexual well-being business, and I point to China particularly, what you've begun seeing there is continued strong performance in the disinfectant business there, but also strong performance in sexual well-being. I mean we've introduced some products there in China, and the business has done very well as it continue to now do very well, which is a turnaround from where it was before. So we're looking at the medium to long term. The strength of the franchise, the demand globally that exists for our products, the fundamental shifts in consumer behavior we are seeing all point to the fact that we believe that in the medium to long term, should we continue to execute, we will do well. In addition, our e-commerce and digital franchise has done exceptionally well. So I think if I put all that together, the business is performing and executing far better than it did a year ago. And as we look at the medium term, we feel good about the progress we are making in our plan to get into what our objectives were in the medium term.

All right. I'm sure we may come back on that further. But one other key question I wanted to ask being at JPMorgan Healthcare Conference, is really to focus on the consumer health part of the business. Well, potentially next year, I think we will see the demerger of the GSK consumer division that's likely to draw attention to this category. And if I look at your health, consumer health, your health division, it's about 1/3 of your sales, a bit more than that. And excluding antiseptic, I think it's about 1/4 of the sales. So it still remains small if I compare to consumer focus -- consumer health-focused business. So is your presence today an indication that you think that the consumer health franchise should be a bigger part of the future at Reckitt going forward? And I also would like to touch upon the shape of your portfolio because it's very different from that of your peers in terms of its breadth from OTC to sexual well-being to food care, antiseptic. And I -- I think a fair question to ask is whether you think it's competitively positioned to deliver value versus peers?

Thank you for that. Our portfolio is well set for the underlying trends, which are tailwinds for the business. We are about health in the broadest context. As I said earlier, we really do believe that hygiene is the foundation of health, and that these businesses are complementary, and we see the linkages as we run the business. This is clearly an important forum for us because we are connecting with partners for innovation as well as for growth. And what we bring in the health business overall, the broader health business, is we bring a depth in consumer. We're leading brands of very strong digital capability, global market presence and execution, a deep heritage in health and a partner-driven approach to science and innovation, and all that makes us quite unique. We fully expect to sustain our commitment to delivering better health outcomes to be central to our future. But we do believe that hygiene is, in fact, a foundation of health. Now to get to the second part of your question on the portfolio and its breadth, our portfolio is clearly broad. In the health business, we clearly have Dettol in the business, but we also have strong anchor positions in OTC. We have a strong anchor position in sexual well-being, which is a fast-growing business. And we continue to invest behind the innovation and brand development across protect, heal and nurture across our entire health portfolio. Some of our brands provide channel scale, for example, in regional pharmacies as well as in emerging markets. And we're committed to rigorously managing our portfolio. And where we find we're not the best owners of it, we will maximize its value.

In terms of -- so the resilience of hygiene, and clearly, it is true that we have seen this year how hygiene has been more linked to health, ever -- more than ever before through this pandemic. Clearly, there has been a strong demand. And you have been adamant in the past that, that could lead to lasting consumer behavior. Now I have a 2-part of my questions. Number one is, how should we envision this pent-up demand unfolding as vaccine is rolled out? Could we see the category falling back a bit? So that, I presume, is a 2021 question. And then can you try to help us understand what you think the size of the opportunity is? Or what kind of growth this category will benefit going forward given the change in behavior?

So we will be living with COVID and its impact for a long time, long after the drive around vaccination. We also know from the work we have done before the pandemic that the headroom in hygienic behavior is significant. Before the pandemic, only 20% of people around the world wash their hands after going to the bathroom before COVID. There's been a lot more sensitivity to this. I mean we did a campaign in India with Dettol and TikTok, and we had 125 billion views. We have seen big differences in this number over the course of the pandemic, and we're going to continue to see it. By the way, we continue to see it even today. So the pandemic has clearly brought about a change in hygiene behavior. We've talked previously about the fact that if consumers change their behavior for about 60 days, that does have some sort of telling impact over time. But what we now have is we have people, obviously, at home. But what we haven't fully factored in, of course, is what happens when they start going to workplace as well as common areas. And I know we all expect to get back soon to that kind of a life. So while the frequency of usage may go down in some occasions, there'll be new other occasions that emerge. As people learn from the pandemic, and we're going to see growth over time. Clearly, you will see perhaps a drop in frequency in some places, but perhaps an increase in others. The other thing, of course, is the phenomenon is also global. Our entire portfolio has not been available in the many markets that we are in. It's an opportunity that we are capitalizing on as we build new businesses, evident from the large number of markets where we saw demand for our products, in some cases, they weren't even available; Brazil will be one example, by the way, that we've talked about before and we'll surely touch on more as we go. But hygiene is also, as I've said before, have been elevated in the public health agenda. I think we've gone away from a time when schools, which have the name hygiene on it, we're thinking of dropping that name because they didn't think it was that important. In fact, being quite important. And we're seeing this clearly evident in the work in various universities and also the Reckitt Global Hygiene Institute. So I fully expect that over time, we will see changes in behavior. It may not be the same level of frequency in many places. We will see new occasions emerge. You're going to see new markets emerge, and new sub needs emerge as well, and we intend to fully capitalize on all of that with what we do with our brands and with the innovations we bring to market.

All right. I mean one of the other points to touch on this: nutrition. And I noted that you talked about population aging, and you could say that this, right now, is more about new birth, and it has been right on the slow side. Now when you came about a year ago, you wrote partially the value of the Mead Johnson acquisition, and I think recognizing maybe some of the lower growth rate for this asset. Now I think you were looking to turn around this division, adding into maybe the adult nutrition side. But I think there is an ongoing question by investors whether really this fits with Reckitt in terms of, do you have the skill set? And is it the right fit for you? All the more, consumers, we have seen that China has been a bit less growthy for international brands of late. So how should we look at that in the context of your portfolio?

Well, we -- as I said last year, last February, the acquisition of the infant nutrition business brought 3 things for us. First, it brought scale in some emerging markets where we were subscale and we weren't that strong, it came in and added to our portfolio. The second thing it did is it brought some strength in R&D., some of which have actually strengthened our science platforms pretty much across the portfolio, and given us the platform, particularly in areas like senior nutrition, where the science of Mead Johnson is beginning to find its it's play, but also where there's some tailwind. And third, it brought some terrific scales in digital and e-commerce, and particularly in China. And that has been actually scaled up pretty much around the world. As we've looked across our entire business. I mean it's one level, this is a great example of the CRM business. I mean of a continuous business where you're building relationships with consumers for certain periods of time, then, of course, you leave the category and come back. So that's been a skill set that's been developed over time, and it's actually been very helpful across our entire portfolio. If you look at our share performance, our share performance is comparable in many markets, and in many cases, better than some of the leading multinational companies. And it's largely been anchored on the strength of the brands, the heritage of the brands, the e-commerce and digital capabilities as well as some of our super premium innovation. Now having said that, there's no question, China and Hong Kong have been a problem for us. In Hong Kong, the length of the shutdown of the cross-border business, clearly is beyond expectations that I think all of us had. And it's an issue we're dealing with. And we also face tough local competitors. So clearly, that's an area that is tougher. Our broader China business, we have a health business in China that is doing exceptionally well. We have a growth business in hygiene as well in China. And our digital and e-commerce business and cross-border business and other categories has actually done quite well, too. We're focused on even better execution, but -- in this business, but we are focused on broadening it. We are focused on broadening it, including the launch of our new adult range, first products which will come out, but it does give us the ability to leverage the science of Mead Johnson into broader spaces.

Now I think you did mention earlier on that you will be looking at assets and monetizing, if need be, things did not fit. And I kind of recall, you also said last year that you need to perform before you can transform. So do you think 2021, maybe the year when you can start to look at that transformation? And should we expect maybe a cleanup of brands here and there? Or do you expect that you could -- are you ready maybe for more sizable transformation?

I think that, as I said earlier about our portfolio, we're happy with the portfolio that we have. And we are focused on maximizing its value. The biggest advantages that we bring as RB is the consumer expertise in the broader health business, health and hygiene, in that sense, the broader health business, the strong brands we have, the ability for us to drive great innovation. We're working on that and making that even better. But also on execution, which we have continued to strengthen over time. Now we look at every opportunity, particularly bolt-on opportunities, while we strengthen our brands innovation and execution for longer-term success. And we also look at our portfolio overall, and there's no baggage here, really. We look at our portfolio and look to see how we maximize the value from it. And of course, we'll keep you updated on any decisions that we have made.

It is true that you mentioned the digital aspect of Nutrition, where the penetration of e-commerce was already elevated in that business. I mean what strikes me is -- and I know it has been part of the reinvestment. Nonetheless, I think there is still a lot of discussion when it pertains to consumer health about digital and the rise of the likes of Amazon Pharmacy pricing pressure while I think there are some compelling features like consumer engagement, need for advice, potential for repeat purchase, the good economics of logistics. So a lot of things that could make a beautiful match with consumer health care and e-commerce, and it doesn't seem this has been honest. Is it an unfair comment? And what can Reckitt do differently?

Well, first of all, our digital and e-commerce business is designed to capitalize on the opportunities that this massive technological shift provides us. The majority of our growth now and in the foreseeable future is going to be driven by digital and e-commerce, the majority of our growth. And on health, there are 3 vectors that we are engaged on with product and digital solutions across the entire consumer journey. I don't think we've fully got the entire set of solutions yet, but we're clearly working on it. The first area is chronic conditions, where we're looking at opportunities to bring these solutions to consumers. For example, be it in pain or in upper respiratory. Sexual well-being, where primacy, immediacy and the ability to form relationships with consumers over time helps. And the third area is personalized offers, both in terms of the consumer experience, as well as what is offered to them based on a deep understanding of their health conditions. So these 3 vectors are very important for us, chronic conditions, sexual well-being and also personalized offers. Partnerships are very pivotal for us as we work across this. And we expect to play a bigger role in this area. But we fully expect that the majority of the growth, the majority of what we will see the company evolve to, will be digital and e-commerce-driven. On your other question about the brands and the larger players, one of the things that is true is that when you are the leading brand in the category, you get a disproportionately higher share online than offline. And it's an area that we watch very carefully in terms of how we play, how we customize our office, particularly for online, how -- and this by the way, we learned as well from the infant formula business, how we think about basket size, how do we think about offers and how we drive execution in order for us to ensure that we can manage what we do across different channels.

I think we have 2 minutes left, so that probably will be the last question. And an important one, I must say, is about reinvestment. You did have a windfall of extra profit coming from hygiene that you reinvested, as you explained in your presentation. So 2 points here, can you try to help us understand the size of the opportunity in there? And second is the huge investment in 2020, providing some cushion for '21 on a comp basis.

Well, I think when we started in February 2020, we talked about the fact that we were going to spend -- that we were in this business. And we talked in July about the fact that we were going to invest over the course of the 2 years in order to position the business for long-term growth and long-term success. Clearly, we've had some benefits that have come over the course of the performance this year. We have targeted some of these investments to ensure we're price competitive, that we're investing in e-commerce, but also importantly, that we're expanding the markets that we're in, and that's where we've been continuing to shore up our capabilities. And so we are focused on the medium to long-term of the growth that we would have, and that's what we have actually spent the money. I think you're going to see the progress we are making. We plan to unveil that at the end of February, both in terms of the capabilities and what we've invested in as well as the progress we've made and positioned the business for the medium term.

Excellent. Thank you so much. We are spot on time. Thank you very much and looking forward to February then.

Thank you. Thanks so much, and thank you for having me.