Reckitt cuts 2026 sales growth guidance

Reckitt Benckiser (RKT) lowered its 2026 annual revenue growth guidance after third‑quarter results were hit by a tough consumer backdrop and operational constraints in North America. The company now expects Core Reckitt full‑year like‑for‑like (LFL) net revenue growth of 3.5% to 4.5%. The revision follows weaker‑than‑anticipated performance in its largest developed markets, even as demand for several of its key brands remains firm.

In Q3 2026, Core Reckitt generated 3.3% LFL net revenue growth.

Reckitt’s 3.3% Core LFL net revenue growth in the quarter ended 30 September came in below the 3.6% forecast by analysts in a company-compiled poll.

Within Core Reckitt, net revenue in Q3 was £2,690 million, supported by positive price and mix of 3.2% and slight volume growth of 0.1% on a LFL basis. For the wider group, LFL net revenue reached £3,362 million, with price and mix up 3.9% and volume down 0.7%. Categories such as Germ Protection and Intimate Wellness led growth, each delivering mid‑single‑digit to high‑single‑digit like‑for‑like increases.

North America, which represented 24% of Core Reckitt net revenues in Q3, was a key drag on performance. The region’s LFL net revenue declined 1.3% in the quarter to £649 million, with volume up 0.7% but price and mix down 2.0%. The company linked the shortfall to temporary manufacturing capacity constraints that limited its ability to meet strong Lysol demand during an upgrade of its North American manufacturing capabilities.

Lysol consumer demand in North America remained robust, with low‑single‑digit sell‑out growth and year‑to‑date market share gains, yet reported LFL net revenue for the brand marginally declined in the region. Reckitt indicated it is using a previously announced investment of up to $600 million in North America to address the operational constraints affecting Lysol supply and expects both Lysol and the broader North American business to rebound in the fourth quarter.

While North America underperformed, Emerging Markets and Europe provided offsetting growth. Emerging Markets delivered 8.0% LFL net revenue growth in Q3 to £1,174 million, driven by balanced contributions from volume and price/mix and growth across all regions. Excluding the Russia Hygiene business, Emerging Markets LFL growth was 9.8%, with South Asia/India, ASEAN and Africa growing double‑digit and Latin America delivering mid‑single‑digit gains.

Europe, accounting for 32% of Core Reckitt Q3 net revenues, returned to growth in the quarter with a 0.8% LFL increase. The improvement followed enhanced execution and new product launches. Year‑to‑date, however, Europe’s LFL net revenue remained down 1.7% to £2,539 million, reflecting earlier volume weakness that has only recently begun to stabilise.

Despite the cut to 2026 revenue guidance, Reckitt reiterated a medium‑term ambition for Core operations to deliver 4% to 5% LFL net revenue growth while growing earnings per share annually. Management also pointed to positive early fourth‑quarter demand trends for seasonal cold and flu brands as one factor supporting the new full‑year guidance range.

In the equity market, Reckitt shares last closed at 54.84 GBP, leaving them down 12.29% since the start of the year. Analyst sentiment remains constructive, with a Buy mean consensus from 19 analysts and an average target price of 62.86 GBP, implying upside versus the latest close. The spread between the last close and the average target stands at 14.63%.