Shares of Reckitt (LSE:RKT) climbed nearly 10% on Thursday after the U.K.-based consumer goods firm boosted its full-year revenue guidance, following a second-quarter sales performance that surpassed expectations. The company’s solid growth in emerging markets helped counterbalance softer demand in North America and Europe.
The producer of well-known brands like Lysol and Dettol reported a 1.9% increase in like-for-like net revenue for the quarter, slightly above analysts’ forecast of 1.7%.
Robust sales in China, India, and Latin America offset weaker trends in developed economies. North America and Europe saw slower performance, impacted by cautious consumer sentiment and a planned shelf reset for its Mucinex cold and flu product due to reformulation.
“We delivered excellent growth in emerging markets and navigated a challenging consumer environment in our developed markets,” said CEO Kris Licht.
At 07:55 GMT, Reckitt’s shares were trading up 9.7% at 5,528p, reaching their highest point since early 2024, and were on track for their largest single-day increase in over 20 years.
Operating profit for the first half of 2025 hit £1.71 billion ($2.32 billion), exceeding the consensus estimate of £1.66 billion.
Looking ahead, Reckitt raised its core like-for-like revenue growth forecast for 2025 to above 4%, up from the previous range of 3% to 4%. For the entire group, it now expects like-for-like revenue growth between 3% and 4%, tightening its earlier guidance of 2% to 4%.
Jefferies analyst David Hayes commented, “This is a quality print we think. The group beat on organic sales in Q2 is led by the Core operation (which is the focus). Emerging market momentum is now well established, with good growth even in tougher markets for many peers (China and LatAm).”
The company’s board also announced an interim dividend of 84.4 pence per share, up from 80.4 pence a year ago, along with a £1 billion share buyback plan scheduled over the next 12 months.
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