Reckitt lifts full-year revenue outlook

(Sharecast News) - Reckitt Benckiser upgraded the full-year revenue growth target for its core brands on Thursday as it posted a better-than-expected jump in second-quarter like-for-like sales. The consumer goods giant said is now targeting LFL net revenue growth above 4% in Core Reckitt for FY25, up from a previous target of 3% to 4% growth. The core segment includes brands such as Nurofen and Dettol.

The upgrade came as Reckitt said second-quarter LFL sales rose 1.9%. This reflects price/mix improvements of 2.1% and a volume decline of 0.2%.

First-half sales grew 1.5% on a LFL basis, while operating profit was 1.8% higher at £1.7bn.

Chief executive Kris Licht said: "This is a strong first-half performance with Core Reckitt growing like for like net revenues 4.2%, demonstrating the strength of our Powerbrands and the positive impact of the strategy we launched a year ago. We have taken a significant step to unlocking value with the announced divestment of Essential Home. Our new operating structure has sharpened our focus, delivering improved execution with continued market share gains and volume momentum.

"We delivered excellent growth in emerging markets and navigated a challenging consumer environment in our developed markets. Our Fuel for Growth programme is ahead of plan, reducing fixed costs, fuelling brand investments and expanding our platform for sustained margin and earnings growth.

"While there is still much work to do, the journey to fundamentally reshape Reckitt into a more efficient, world-class health and hygiene company is well underway and reflecting that we are upgrading our LFL net revenue guidance for 2025."