27th Oct 2026 08:52
(Alliance News) - Reckitt Benckiser Group PLC on Tuesday lowered its annual guidance as third-quarter sales missed expectations due to an unexpected slowdown in the US.
In response, Reckitt shares fell 5.8% to 5,166.00 pence each in London on Tuesday morning. It was one of the worst performing stocks in the FTSE 100 index, which itself was down 1.0%.
The Uxbridge, London-based consumer goods firm owns products such as Nurofen painkillers, Strepils throat sweets and Dettol antiseptic.
Reckitt now expects full-year 2026 like-for-like revenue growth for its core business of 3.5% to 4.5%, lowered from 4.0% to 5.0% before.
This reflects manufacturing constraints affecting household cleaning and disinfecting product Lysol in North America, and slower growth in China's vitamins, minerals and supplements market.
Chief Executive Kris Licht said it was a "good underlying performance" by by the company despite a "challenging" consumer environment.
"Emerging Markets delivered growth in all regions and, importantly, we returned Europe to growth. North America was below our expectations. While consumer demand for Lysol remains strong, temporary manufacturing constraints limited our ability to fully meet demand," he added.
Reckitt reported revenue of GBP3.36 billion in its third quarter, down 6.9% from GBP3.61 billion a year prior.
Like-for-like sales grew 3.2% in the quarter, short of 3.7% Visible Alpha consensus, and slowed from 4.7% in the three months to June.
Sales in its core brands increased 3.3% on a LFL basis to GBP2.69 billion, below VA consensus at 4.1%, and a deceleration from 4.2% in the prior quarter.
Core revenue was driven by 8.0% like-for-like growth in emerging markets, although this was below 8.9% consensus. Europe returned to growth with a 0.8% increase, outstripping consensus which projected a flat showing.
North American revenue fell 1.3% like-for-like, compared to consensus which forecast 1.2% growth, although Reckitt expects a fourth-quarter recovery as Lysol manufacturing constraints ease.
Mead Johnson Nutrition revenue rose 2.7% like-for-like to GBP549 million.
Reckitt maintained its full-year adjusted operating profit margin guidance of 24.9% to 25.6% for Core Reckitt and Mead Johnson Nutrition combined, and reiterated its medium-term target of 4.0% to 5.0% annual like-for-like revenue growth for its core business.
The company noted positive demand for seasonal cold and flu brands early in the fourth quarter and said it enters the final three months of 2026 with "good momentum".
Reckitt said it has completed GBP90 million of its GBP500 million share buyback programme as of October 23.
By Jeremy Cutler, Alliance News reporter
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