London, April 25, 2026, 17:06 BST
- Reckitt’s Durex is back in the spotlight after a shaky first quarter, this time thanks to a condom price scare out of China.
- Reckitt fell short of core sales growth targets and flagged weaker margins for the first half.
- Its 2026 targets are coming under strain as higher oil prices, Russia sanctions, and sluggish cold-and-flu demand start to bite.
Reckitt Benckiser Group plc is under new pressure in China, with news of rising condom prices spreading quickly online. The viral warning has sparked chatter about stockpiling, hitting one of the company’s vital growth markets only days after it posted quarterly sales that fell short of forecasts.
This issue is moving front and center after China and India gave Reckitt’s emerging markets results a lift in the first quarter. Durex sales in China, though, have stalled—condoms and contraceptive pills are now hit with a 13% value-added tax, pushing up prices throughout the supply chain. Karex Bhd, which makes more condoms than anyone and counts Durex and Trojan among its customers, says it may hike prices 20% to 30% if supply snarls from the Iran conflict persist. The potential jump drew plenty of notice: a hashtag linked to the news surged past 60 million views on Weibo by this Thursday, according to Reuters. Reuters
Reckitt—the company behind Dettol, Lysol, Durex and Finish—reported like-for-like net revenue growth of 1.3% for its core business over the three months to March. That number came in short of the 2.9% analysts had expected, based on a company-compiled poll. Like-for-like sales, which exclude effects from currency swings and portfolio changes, reflect the underlying trend. Reuters
London shares didn’t trade at the dateline, the market having closed for the weekend following its standard 8:00 a.m. to 4:30 p.m. schedule, Monday to Friday. On Wednesday, the stock slumped up to 7% after the latest update, hitting lows not seen since late 2024. TradingHours
Chief Executive Kris Licht pointed to “very low seasonal incidence,” sluggish European categories, and geopolitical turmoil as headwinds for core growth, though Reckitt still stuck to its 2026 like-for-like revenue forecast. Looking ahead, the group expects growth to come from a rebound in cold-and-flu demand, launches such as Mucinex 12hr Cold and Fever, a turnaround in Europe, and ongoing expansion in China, India, and non-seasonal North America. Reckitt
Investors seemed uneasy. “Broad-based muted growth,” is how Harsharan Mann, consumer sector hub lead at Aviva Investors—also a Reckitt shareholder—described the latest numbers. Over at JPMorgan, analyst Celine Pannuti pointed to disappointing second-quarter prospects in emerging markets, raising questions about Reckitt’s ability to meet full-year goals. Reuters
But the squeeze isn’t limited to its condom business. Reckitt flagged that first-half margins are set to drop by around 200 basis points versus last year—a basis point equals one-hundredth of a percentage point. The company pointed to elevated oil prices, sanctions on Russia, a soft cold-and-flu season across the U.S. and Europe, plus fresh disruption stemming from the Iran war. Reuters
One concern: that the squeeze sticks around longer than Reckitt anticipates. Its full-year guidance counts on emerging markets avoiding fresh fallout from the Iran war after the first half. Reckitt also warned that higher commodity costs could dampen consumer appetite, pinching household budgets. Reuters
Rival companies aren’t painting a different picture. On Friday, Procter & Gamble said it expects a post-tax profit dent of about $1 billion in fiscal 2027 because of pricier oil. Nestlé and Beiersdorf have mentioned cost pressures too, or suggested prices might have to go up. The commodity impact, P&G’s finance chief Andre Schulten said, is “nothing to sneeze at.” Reuters
Reckitt’s push to streamline continues as challenges mount. The company has zeroed in on key lines—Durex, Lysol, Mucinex—following its $4.8 billion Essential Home divestiture. Management hasn’t landed on a plan for Mead Johnson yet, with the baby-formula business still contending with lawsuits and ongoing interest from Danone as a potential buyer. Reuters
Reckitt can still deliver on its full-year outlook, but that depends on fresh launches gaining traction right away, according to Aarin Chiekrie, equity analyst at Hargreaves Lansdown. Chiekrie also flagged the Mead Johnson divestment as a sticking point, saying it leaves execution risk elevated despite the stock’s recent dip. Hl
