Reckitt Benckiser Shares Drop: Still Has ‘Major Hurdles to Overcome’

Shares in Reckitt Benckiser (LON: RKT) have dropped more than 12% in the past week and over 14% across the past month, with the latest leg lower driven by a disappointing market reaction to last week’s full-year results.

The stock fell more than 5% on March 5 after the group reported its 2025 numbers, and analysts at Hargreaves Lansdown say challenges in Europe continue to weigh on sentiment.

While the stock snapped its losing run on Tuesday, it only closed 0.2% higher.

Hargreaves Lansdown said Reckitt delivered “a strong finish to the year, with headline numbers ahead of forecasts,” highlighting underlying revenue growth of 5% to £14.2 billion and a matching 5% rise in underlying operating profit.

But it added that “weakness across Europe held back progress,” with the region posting a 1% decline and showing “no sign of a let-up in the early months of 2026.”

The broker noted that restructuring and disposals are becoming central to the investment case. With the Essential Home business sold and proceeds returned to shareholders, it said that an exit from Mead Johnson Nutrition “should free up cash to invest in higher-returning parts of the business” if executed well.

Hargreaves Lansdown was cautiously supportive of the strategy, arguing that Reckitt’s collection of core “Powerbrands,” including Vanish, Durex and Dettol, should help drive better sales growth going forward.” It also said the valuation “doesn’t look too demanding… given its host of power brands.”

However, the firm stressed that investors “will need patience,” warning that the transformation “still has some major hurdles to overcome,” particularly the remaining Mead Johnson sale and the need for more consistent market share gains in developed markets.