Reckitt Benckiser Group (RKT) UBS Global Consumer and Retail Conference summary

Emerging markets performance and strategy

• Shift to a geography-focused model in 2025 accelerated emerging markets growth, especially in China, due to dedicated leadership and long-term investments.

• China contributed one-third of emerging markets exposure and nearly half of like-for-like sales growth, with double-digit growth for ten consecutive quarters and expectations to sustain this in 2026.

• Key strengths in China include focus on consumer health brands, strong Western brand perception, and advanced e-commerce and live streaming capabilities, with 80% of business online.

• India remains brick-and-mortar focused, with consistent high single-digit growth driven by distribution expansion and strong local sales execution.

Mature markets outlook

• Europe experienced a slowdown to flat category growth in 2025, with no expected catalysts for recovery in 2026; focus is on competitive execution and market share retention.

• North America is expected to return to growth in 2026, driven by non-seasonal categories and innovation, despite a challenging Q1 due to retailer destocking.

Earnings and margin guidance

• Core business gross margins are expected to remain flat, with Mead Johnson seeing slight contraction due to normalization post-restocking.

• Operating margin for 2026 is guided slightly below 25.6% (core plus Mead Johnson), with ongoing efforts to offset stranded costs from Essential Home divestiture.

• GBP 25 million pre-tax income expected from transitional services to Essential Home, with associate income from the 30% stake dependent on new ownership performance.