Reckitt Benckiser backs outlook as sales catch a cold in first quarter
Reckitt Benckiser Group PLC on Wednesday said revenue in the first quarter of 2026 was hit by weak sales of cold and flu remedies and ‘ongoing challenges’ in Europe.
The Uxbridge-based consumer goods firm, which owns products such as Nurofen painkillers, Strepils throat sweets and Dettol antiseptic said net revenue fell 12% to £3.25 billion in the quarter to March from £3.68 billion a year prior, 1.9% below Visible Alpha consensus of £3.19 billion.
Like-for-like sales growth was 0.6%, below consensus for a 1.6% increase, with prices up 2.6% and volumes down 2.0%.
Core Reckitt, the firm’s high-growth ’Powerbrands’, reported LFL growth of 1.3%, well below consensus of 2.9%.
Reckitt said the quarter was impacted by a slow cold and flu season, ‘ongoing challenges in Europe and geopolitical disruption to operations and supply in our Middle East business.’
In response, shares in Reckitt Benckiser fell 5.6% to 4,644.00 pence each in London on Wednesday morning. It was the worst performing stock on the FTSE 100 which was little changed.
In its Self-Care division, seasonal over-the-counter sales fell 11% due to lower incidence rates of cold and flu compared to the prior year. Double-digit sales falls were seen in North America and Europe.
Excluding seasonal over-the-counter sales, Core Reckitt delivered 3.1% LFL growth, the firm added.
Core Reckitt was led by Emerging Markets, with double-digit growth in China and India and mid-single-digit growth in non-seasonal brands in North America.
Emerging Markets LFL revenue grew 7.6%, in Europe, LFL revenue declined 4.2% and in North America LFL revenue fell 0.9%.
However, Emerging Markets growth fell short of loftier hopes of market consensus which forecast an increase of 10.4%. In the fourth quarter of 2025, Emerging Markets reported LFL sales growth of 17.2%.
Mead Johnson Nutrition delivered a LFL net revenue decline of 2.7%. Recent reports suggested Paris-based food and beverage company Danone SA was considering bidding for the infant nutrition business which has had a chequered history since Reckitt paid $16.6 billion for it back in 2017.
Germ Protection reported LFL growth of 9.5% in the quarter, with Dettol and Lysol both growing double-digit, while Household Care LFL sales fell 7.6%, hit by a ‘challenging promotional environment in Europe’. Intimate Wellness LFL revenue rose 0.3%.
Despite the sales miss, Reckitt maintained full-year guidance for 2026 LFL revenue outlook for Core Reckitt of 4% to 5%.
Chief Executive Officer Kris Licht said this will be driven by ‘sequential growth from our market-leading Powerbrands, as the season resets and we continue to launch superior innovations including Mucinex 12 [hour] Cold and Fever, improved performance in Europe and continued strong growth across China, India and non-seasonal North America.’
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