Reckitt (LSE:RKT) reported first-quarter 2026 Core like-for-like net revenue growth of 1.3%, with strong performance in Emerging Markets helping to offset weaker conditions elsewhere. Growth of 7.6% in Emerging Markets—supported by double-digit gains in China and India—balanced declines in Europe, the impact of a milder cold and flu season, and disruption linked to geopolitical tensions in the Middle East. Excluding seasonal over-the-counter products, Core growth improved to 3.1%, while reported Group IFRS revenue fell 11.8%, reflecting the disposal of the Essential Home business and adverse currency movements.
In North America, like-for-like revenue declined slightly despite solid volume growth and strong demand for non-seasonal brands such as Lysol. Europe saw a sharper 4.2% decline, driven by softer category demand and heavy promotional activity in auto dishwashing. The non-core Mead Johnson Nutrition business recorded a 2.7% drop against a tough comparison, although underlying trends were described as stable. Meanwhile, Reckitt continues to execute its £1 billion share buyback programme, with around two-thirds completed by mid-April.
Management reaffirmed its full-year 2026 guidance, targeting 4% to 5% Core like-for-like revenue growth, with margin delivery expected to be weighted toward the second half of the year. This outlook assumes a return to more typical cold and flu patterns and benefits from the ongoing “Fuel for Growth” cost-saving programme, which is expected to help offset stranded costs following the Essential Home divestment. The company acknowledged continued uncertainty stemming from the Middle East conflict and the risk of pressure on consumer demand if commodity prices remain elevated, but believes these challenges can be mitigated through pricing, product mix, and supply chain efficiencies supported by a strong gross margin profile.
Reckitt’s outlook is supported by improving profitability and reduced leverage, alongside a reasonable valuation with a moderate P/E ratio and solid dividend yield. However, weaker technical indicators—such as the share price trading below key moving averages—and near-term concerns around cash flow, leverage, and margin visibility temper the overall picture.
More about Reckitt Benckiser Group
Reckitt Benckiser Group is a global consumer health, hygiene, and nutrition company, offering a portfolio of well-known brands across over-the-counter medicines, disinfectants, cleaning products, and infant nutrition. Its product range spans categories including germ protection, surface care, auto-dishwashing, sexual wellness, and paediatric nutrition, with a strong presence across North America, Europe, and fast-growing Emerging Markets such as China and India.
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