LONDON, April 23, 2026, 20:02 BST
Reckitt Benckiser Group plc fell short of analysts’ first-quarter sales forecasts and flagged that first-half margins are set to be about 200 basis points—or 2 percentage points—lower than a year ago, as higher oil prices, lackluster cold-and-flu demand, and ongoing geopolitical issues weighed on performance. Shares in the Dettol and Durex maker slid 4.6% on Wednesday, after earlier sinking as much as 7% in the session.
Reckitt finds itself under pressure right now. The company just offloaded its Essential Home division for $4.8 billion in December and is aiming to convince investors that a streamlined push on hygiene and health can keep core sales rising 4%-5%. That effort comes as Reckitt considers next steps for its Mead Johnson infant formula unit, which remains mired in litigation.
This isn’t happening in isolation. On Thursday, Reuters flagged that Procter & Gamble is preparing for more gross-margin strain this quarter as freight and packaging expenses rise due to the Iran war. Danone, for its part, said earlier this week the conflict is snarling baby-formula shipments across the Middle East.
Reckitt posted a 1.3% rise in core like-for-like revenue for the March quarter, missing the company’s own analyst poll, which pointed to a 2.9% gain. Group like-for-like revenue ticked up just 0.6%. Emerging markets delivered a 7.6% jump, but Europe dropped 4.2% and North America slipped 0.9%. Reported group revenue slid 11.8% to 3.247 billion pounds, mainly due to currency pressures and the absence of Essential Home sales.
Chief Executive Kris Licht pointed to “very low seasonal incidence” and softness in Europe as drags on the quarter, though the 2026 outlook stays put. Strip out seasonal OTC—over-the-counter drugs—and Core Reckitt posted 3.1% growth. Licht is counting on new products like Mucinex 12hr Cold and Fever to pick up the pace going forward. Reckitt
Category trends diverged sharply. Seasonal OTC sales slumped 10.8%—retailers trimmed stock and demand for cold and flu treatments weakened. Germ protection surged 9.5%, getting a boost from double-digit gains at Lysol and Dettol.
China and Russia turned out to be trouble spots this quarter. Reckitt reported no growth for Durex sales in China, blaming a fresh 13% value-added tax slapped on condoms and contraceptive pills. Over in Russia, stiffer EU sanctions dented the company’s household-care and germ-protection operations.
Reckitt told Reuters its Russian team is actively working on product development and securing new intellectual property as it looks to rebuild much of its hygiene portfolio in the country. The company says the transfer of ownership for its Russian business remains in progress. “The results showed broad-based muted growth,” said Harsharan Mann at Aviva Investors, a Reckitt shareholder, speaking to Reuters. Reuters
Analysts hardly struck an optimistic tone. Celine Pannuti at JPMorgan called it disappointing that management expects second-quarter emerging-market growth to just mirror the first quarter. For Bernstein’s Callum Elliot, the Russia situation brings the full-year sales target back under scrutiny for Reckitt.
Reckitt is sticking with its projection for 4%-5% like-for-like growth in the core business for this year, and still expects full-year adjusted operating margin will land mostly in the back half. The company also penciled in a potential 130 million- to 150 million-pound bump in 2026 input costs if oil sits at $110 per barrel. For the first half, margin will likely come in roughly 200 basis points under last year’s 24.6%.
There’s a risk the squeeze drags out longer than Reckitt’s team expects. Should Middle East disruption extend beyond the first half, petrochemical and freight costs remain elevated, with supplier price hikes potentially spreading further. That sets up the possibility of fresh trouble in China—right as Durex is already navigating new tax rules and tighter content restrictions online. This week, Karex, a Durex supplier, warned it could push condom prices up by 20%-30% if these disruptions persist.
Reckitt hasn’t reported any raw material shortages for condoms so far and isn’t forecasting additional war-related impacts past the first half. Its 2026 outlook leans on a cold-and-flu demand rebound, improved performance in Europe, and a pickup in product launches. Mead Johnson is still under evaluation.
