Reckitt Benckiser Shares Jump as Q2 Growth Accelerates, Outlook Reiterated

Reckitt Benckiser (LON: RKT) shares have risen sharply on Wednesday, climbing around 4.9% to 5,430p, after the consumer health and hygiene giant reported an acceleration in second-quarter growth and reiterated its full-year guidance.

The maker of Dettol, Durex and Lysol posted first-half like-for-like net revenue growth of 2.6%, with Core Reckitt revenue up 2.7%. Crucially, momentum built through the period, with Q2 like-for-like growth hitting 4.2% for Core Reckitt and 4.7% including Mead Johnson Nutrition — well ahead of the first quarter’s pace.

Growth was broad-based, with all regions and categories improving: Emerging Markets grew 9.4% in Q2, North America returned to growth at 2.8%, and Europe narrowed its decline to -1.5%.

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Chief Executive Kris Licht said the results reflected “broad-based acceleration,” crediting strong Powerbrand performance and consumer response to innovations such as Dettol Activ Botany and the new Mucinex 12HR Cold & Fever launch. China delivered its 12th consecutive quarter of double-digit growth.

Adjusted operating margin for Core Reckitt plus Mead Johnson came in at 23.6%, ahead of expectations, aided by the company’s “Fuel for Growth” cost-cutting programme offsetting stranded costs from the Essential Home divestment. Statutory figures were weaker, with IFRS operating profit down 22.2% and diluted EPS falling, largely due to the absence of Essential Home’s prior-year contribution.

Reckitt reiterated full-year guidance of 4-5% like-for-like revenue growth for Core Reckitt and an adjusted operating margin of 24.9-25.6%. It also announced a new £500 million share buyback and lifted its interim dividend by 5% to 88.6p, reinforcing investor confidence in the turnaround.