Reckitt's emerging markets growth fuels sales, launches $665 million buyback (updated)

Reckitt Benckiser

29/07/2026 07:07

Like-for-like sales in core business up 4.2%
Emerging market like-for-like sales jump 9.4%
Middle East operations and supply improved after initial U.S.-Iran ceasefire
CEO says costs related to Iran war remain manageable
Shares up about 6%
Adds shares in paragraph 2, analyst comments in 6 and 8, forecast in 7, cost estimate in 12
By Shashwat Awasthi and Richa Naidu
July 29 (Reuters) - Consumer goods giant Reckitt RKT.L beat second-quarter sales growth estimates and launched a share buyback worth up to £500 million ($665 million) on Wednesday, boosted by strong demand in China, India and other emerging markets.
Shares in the Dettol soap and Durex condoms maker were up 5.9% at £54.76 by 0740 GMT, on track for their best day in a year if gains hold. The stock has fallen more than 23% since the Iran war began.

        Emerging markets have been a key growth engine for consumer goods companies including Reckitt and Unilever ULVR.L, helping cushion the impact of higher costs and disruptions stemming from conflict in the Middle East.
Reckitt posted like-for-like net revenue growth of 4.2% in its core business for the quarter ended June 30, topping analysts' average forecast of 3.6%, according to a company-compiled poll.
Like-for-like sales in emerging markets jumped 9.4%, despite a 170-basis-point hit from Western sanctions on its Russian business. Emerging markets account for 44% of core revenue.
     
     
The overall results "were fine, or maybe better than fine given that there was a fear amongst investors of full-year downgrades," RBC Capital Markets analyst James Edwardes Jones said.
Reckitt stuck with its forecast for sales in its core business to grow 4%-5% this year, and said it expects its adjusted operating margins in the second half to be much stronger than the 23.6% reported in the first half.
"Beyond the top​-​line beat, the quarter also provided a bit more confidence in the second half outlook," Barclays analyst Warren Ackerman said in a note.
     
     
IRAN WAR COSTS 'MANAGEABLE'
The British company, which also produces Nurofen tablets and cold remedy Lemsip, said its operations and supply in the Middle East improved during the quarter following an initial ceasefire between the U.S. and Iran.
CEO Kris Licht told Reuters that costs from the Iran war were "not so significant" for the firm.
"There is a headwind on cost when oil prices are up but as you've seen they also come down quite quickly. So it's a manageable impact for us," he said.
Reckitt noted that oil prices had moderated since the end of the first quarter, and that it expects a reduced hit from higher input costs in 2026.
     
     
       ($1 = 0.7520 pounds)

 (Reporting by Shashwat Awasthi in Bengaluru and Richa Naidu in London; Editing by Sherry Jacob-Phillips, Lincoln Feast, Elaine Hardcastle)
 ((Shashwat.Awasthi@tr.com))