Russ Mould, investment director at AJ Bell, said: “Chief executive Kris Licht is likely to come under greater scrutiny after Reckitt’s latest quarterly results.
“A weak cold and flu season might be good news for most of us but is a headache for Reckitt as it undermines sales of Lemsip and Strepsils.
“Having been in situ for two-and-half years, Licht’s strategy to revive the group’s fortunes seemed to be gaining some traction in 2025, but recent events have intervened to damage the business.
“The energy price shock caused by events in the Middle East is expected to hit consumer demand and increase costs – undermining the progress made on tightening control of the purse strings.
“Households watching their pennies could accelerate a trend of people buying cheaper own-label products rather than the big brands offered by the likes of Reckitt.
“Emerging markets – a more reliable source of growth for Reckitt because of the lack of safe and reliable unbranded alternatives – may also be disproportionately impacted by rising oil and gas prices.
“Reckitt’s shares are under water on a total returns basis since Licht took the helm and he badly needs a win.
“A sale of the group’s problem division – the Mead Johnson infant nutrition arm – could provide it.
“Danone has been rumoured as a suitor although Reckitt may have to offer a discounted price to get a deal across the line.
“Reckitt remains confident of hitting full-year targets by leaning into its power brands, but the underpowered market response to today’s update suggests healthy scepticism about its prospects of doing so.”
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