Reckitt sees pressures ahead as Emerging Markets drives strong quarter
Reckitt Benckiser Group PLC on Thursday said a weak cold and flu season, and challenging trading in Europe, would hamper performance in the first quarter of this year, after reporting a strong end to 2025.
The Uxbridge, London-based consumer goods firm, which owns products such as Nurofen painkillers, Strepils throat sweets and Dettol antiseptic, said pretax profit jumped 83% to £3.84 billion in 2025 from £2.10 billion in 2024.
Diluted earnings per share more than doubled to 467.2 pence from 203.2p.
Net revenue rose 0.3% on-year to £14.21 billion from £14.17 billion, with core like-for-like growth of 5.2%, ahead of its 4% to 5% medium-term target, and driven by very strong growth in Emerging Markets.
In the fourth quarter, core LFL gowth was 5.9%, above 5.3% company compiled consensus, with Emerging Markets up 17%, Europe down 4.5% and North America up 2.5%.
For 2025, Emerging Markets LFL revenue grew 15%, with growth across all regions and all categories, driven by our brand and execution strengths, with North America up 0.2% and Europe down 1.4%.
Europe was held back by a challenging consumer environment and the timing of the cold & flu season.
North America saw improved momentum in the second half of 2025 reflecting strong growth in non-seasonal brands.
‘2025 has been a strong year with performance ahead of our expectations,’ said Chief Executive Kris Licht.
‘We have more work to do but our geographic footprint, portfolio of Powerbrands and focused organisational structure have strengthened our ability to deliver sustainable long-term growth. We
look forward with confidence,’ he added.
Category performance was led by Intimate Wellness with double-digit full-year LFL net revenue growth. Germ Protection reported high-single-digit LFL growth, led by Dettol, now Reckitt’s largest Powerbrand by net revenue. Reckitt also saw a strong performance from non-seasonal over-the-counter self-care products, which posted high-single-digit LFL growth.
Mead Johnson Nutrition posted LFL growth 3.8%, with the US returning to more normalised trading.
Reckitt proposed a final dividend of 127.8 pence per share, up from 121.7p a year ago, taking the total payout for 2025 to 212.2p, up 5.0% from 202.1p.
For 2026, Reckitt expects LFL net revenue growth in Core Reckitt in its 4% to 5% medium-term guidance range.
But it expects an impact in the first quarter on its seasonal over-the-counter business from a weaker cold and flu season, while the trading environment in Europe is likely to remain challenging.
Reckitt expects low-single-digit LFL net revenue growth in non-core Mead Johnson Nutrition business in 2026, with a mid-single-digit LFL decline expected in the first quarter of 2026 as ‘we lap the retailer inventory rebuild in North America’ a year ago.
In addition, given performance of the ’Fuel for Growth’ programme, Reckitt said it has now has confidence in achieving a fixed cost base ‘below our initial 19% target by the end of 2027.’
Shares in Reckitt Benckiser were down 2.3% at 5,910.00 pence each in London on Thursday. The wider FTSE 100 was up 0.5%.
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