Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “Reckitt’s first-quarter results weren’t the clean bill of health some had hoped for, but 1.3 per cent like-for-like (LFL) revenue growth in the core business and unchanged full-year guidance meant it just about passed its medical.
“A weak cold and flu season across North America and Europe led to revenue declines in these regions.
“However, this was more than offset by 7.6 per cent LFL revenue growth in emerging markets, including double-digit growth in China and India.
“Despite already accounting for 42 per cent of group sales, the opportunity in emerging markets remains huge, so there’s a long runway for further growth if the group can execute well there.
“Zooming out, Reckitt’s had a tough start to 2026, with its shares down more than 20 per cent year to date as it has followed peers like Unilever and the broader sector downward.
“Yes, there are some Reckitt-specific reasons that can explain some of the decline, like stranded costs from the separation of its Essential Home business weighing on profitability, and a higher-than-expected tax rate this year.
“But the longer-term picture needs to be kept in mind.
“The hygiene and health company owns household names such as Dettol, Vanish, Nurofen, and many others.
“These are names that consumers trust, giving Reckitt the power to push through higher prices over time.
“And stripping out sales of seasonal products over the first quarter, group LFL revenue growth was a much healthier 3.1 per cent.
“With new products launching and initiatives under way in struggling regions, full-year revenue growth is still expected to land between four-to-five per cent.”
Contact details are available to account holders.
Create a free account to get in touch with this expert.