Reckitt Trading Update Signals Revenue Strain
Reckitt trading update flagged weaker like-for-like growth and first-half margin warning while keeping full-year sales guidance, signaling risk to shares.
KEY TAKEAWAYS
- Group like-for-like net revenue rose 0.6% in Q1, missing expectations.
- Warned first-half adjusted operating margin would be about 200 basis points below prior year.
- Emerging markets LFL grew 7.6% while Europe declined 4.2% and North America slipped 0.9%
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Reckitt Benckiser (RBGLD) said in a trading update on April 22, 2026, that like-for-like sales rose less than investors expected and warned that first-half operating margins would be materially lower. The company maintained its full-year sales target while highlighting cost pressures and seasonal risks.
Revenue and Regional Performance
The update showed group like-for-like net revenue rose 0.6% in the first quarter, while reported net revenue fell 12.0% year on year to GBP3.3 billion. Core Reckitt’s like-for-like net revenue increased 1.3% to €2.6 billion, and excluding seasonal over-the-counter (OTC) products, Core Reckitt grew 3.1%.
Emerging markets expanded 7.6% like for like, led by China and India. Europe declined 4.2% like for like, and North America slipped 0.9%. Powerbrands showed mixed results: Germ Protection rose 9.5% like for like, Household Care declined 7.6%, and Intimate Wellness edged up 0.3%.
The company attributed the weak performance to a mild U.S. and European cold-and-flu season, which hurt seasonal OTC brands such as Mucinex, Strepsils, and Nurofen, all of which posted double-digit declines. Retailer destocking, promotional pressure, and supply disruptions in the Middle East also weighed on results.
First-Half Margin Outlook
Reckitt maintained its full-year Core Reckitt like-for-like net revenue guidance at 4–5%, assuming no further emerging-markets impact from the Middle East conflict beyond the first half. The company said meeting the full-year target depends on Powerbrands delivering sequential growth after the seasonal reset.
The update included a first-half margin warning. Adjusted operating margin is expected to be about 200 basis points below the prior year, implying roughly 22.6%. Elevated commodity costs tied to high oil prices were cited as the main source of pressure. The company noted that sustained high commodity prices could also affect consumer demand by pressuring household budgets.
