Reckitt Benckiser Group (RKT) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 performance was solid and in line with guidance, with Core Reckitt driving growth, especially in Emerging Markets, and continued strategic execution through innovation and operational efficiency.

• Powerbrands such as Germ Protection and Intimate Wellness delivered strong results, offsetting declines in non-core segments.

• Strong momentum in emerging markets, particularly China and India, with double-digit growth in Intimate Wellness, Dettol, and VMS.

• Ongoing separation of Essential Home and a £1 billion share buyback programme, with £815 million repurchased as of April 2025.

• Strategy focused on power brands, innovation, and operational efficiency continues to deliver market share gains.

Financial highlights

• Group like-for-like net revenue grew 1.1% year-over-year to £3,683m; Core Reckitt up 3.1% to £2,630m, led by Emerging Markets (+10.7%).

• Volume for the Group declined 1.9%, with price/mix up 3.0%.

• Europe declined 1.7% like-for-like net revenue (volume -4.7%, price mix +3%), lapping a strong Q1 2024.

• North America saw a 0.9% like-for-like net sales decline (volume -1.8%, price mix +0.9%), impacted by retailer destocking but supported by innovation-led share gains.

• Essential Home like-for-like net revenue declined 7.0%, impacted by tough comps and SAP implementation phasing.

Outlook and guidance

• Fiscal 2025 guidance maintained: group like-for-like net revenue growth of 2% to 4%, with Core Reckitt targeted at 3%–4%.

• Q2 growth in Core Reckitt expected to be led by Emerging Markets; H2 growth to be more balanced across regions.

• Growth in Mead Johnson and Essential Home expected to be second half weighted.

• Adjusted operating profit expected to outpace net revenue growth; another year of adjusted diluted EPS growth anticipated.

• Adjusted net finance expense forecasted at £350m–£370m; effective tax rate at 25%–26%.