Reckitt maintains guidance after mixed first quarter

(Sharecast News) - Reckitt Benckiser shares were sliding at the open on Wednesday, even after it reported a 3.1% rise in like-for-like net revenue for its Core business in the first quarter, as revenue in Europe and North America declined. The FTSE 100 consumer products giant said the gains were supported by strong performances in Germ Protection and Intimate Wellness.

Volume growth of 0.3% in 'Core Reckitt' was led by emerging markets, which posted a 10.7% increase in net revenue, driven by double-digit gains in China and strong contributions from India.

Intimate wellness was the standout performer, with 16.6% like-for-like growth, buoyed by market share gains and product innovation, including new Durex launches in China and Europe.

Germ protection grew 7.5%, with Dettol and Harpic delivering robust performances, particularly in emerging markets.

Self-care declined 3.6% due to shipment phasing and high retailer inventories, although VMS brands like Move Free and Airborne posted strong growth.

Europe saw a 1.7% decline in like-for-like net revenue as the group lapped prior year shipment phasing, though market share gains were achieved.

In North America, revenues fell 0.9% amid retailer destocking and weaker consumer confidence, despite share gains driven by innovations in Lysol and Mucinex.

Reckitt maintained its full-year guidance for 2025, expecting group like-for-like net revenue growth of 2% to 4%, and 3% to 4% growth in Core Reckitt.

Growth was expected to be more weighted towards the second half in non-core segments, Essential Home and Mead Johnson Nutrition, both of which posted first-quarter revenue declines of 7.0% and 0.5%, respectively.

The company's £1bn share buyback programme remained in progress, with £815m of shares repurchased as of mid-April.

Reckitt also reiterated its commitment to the 'Fuel for Growth' programme and plans to separate the Essential Home business in 2025, though it acknowledged that market conditions may affect the timeline.

"We delivered a solid first quarter driven by Core Reckitt with continued strong growth in Emerging Markets," said chief executive officer Kris Licht.

"We continue to execute against our strategy to make Reckitt a more efficient, world-class consumer health and hygiene company, driven by increased investment, innovation, and our Fuel for Growth programme.

"Our portfolio of high-growth, high-margin Powerbrands underpins our resilience, and we maintain our outlook for full year 2025 whilst recognising the more challenging macroeconomic outlook."

At 0804 BST, shares in Reckitt Benckiser were down 4.3% at 4,737p.

Reporting by Josh White for Sharecast.com.