Reckitt Benckiser Group (RKT) Q1 2026 earnings summary

Executive summary

• Q1 2026 like-for-like net revenue grew 1.3% in Core Reckitt, led by high single-digit growth in Emerging Markets, with China and India both delivering double-digit growth; excluding seasonal business, Core Reckitt achieved 3.1% growth.

• North American non-seasonal business performed strongly, with Lysol up double digits, while Europe faced headwinds from weak seasonal trends and competitive pressures but saw Finish regain leadership in key markets.

• Group IFRS net revenue declined 11.8% due to FX headwinds and the prior year's Essential Home contribution; Essential Home was divested at the end of 2025, impacting year-on-year comparisons.

• Innovation and premiumization strategies supported growth, with new launches across categories and strong execution in key retail channels.

• Geopolitical disruptions, including sanctions on Russia and the war in the Middle East, negatively impacted MENAP and Middle East revenues.

Financial highlights

• Group like-for-like net revenue growth was 0.6% in Q1, with Core Reckitt at 1.3%; Group IFRS net revenue declined 11.8%.

• Excluding seasonal OTC, Core Reckitt delivered 3.1% like-for-like growth.

• Emerging Markets grew 7.6% (0.5% volume, 7.1% price/mix), with China and India both achieving double-digit growth.

• Europe declined 4.2% like-for-like, with a 4.5% volume decline and 0.3% price/mix growth.

• North America saw a 0.9% like-for-like net revenue decline, but non-seasonal business grew mid-single digits, notably Lysol.

Outlook and guidance

• Maintains full-year Core Reckitt like-for-like net revenue growth guidance of 4%-5%.

• Group-adjusted operating profit margin expected to be up on 2025’s 24.9%, but not reaching the 25.6% baseline (excluding Essential Home); margin delivery expected to be back-half weighted, with H1 margins about 200bps lower due to stranded costs and weak seasonal OTC.

• Q2 expected to see improvement in Europe and continued strong performance in North America and Emerging Markets, benefiting from new product launches and a reset of the cold and flu season.

• Adjusted net finance expense expected at £320m–£340m; adjusted effective tax rate ~27%.

• Capital expenditure as a percentage of net revenue expected at ~4%.