Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) shares jumped 9% in early Thursday trading after the group upgraded its outlook for 2025, underpinned by a strong set of half-year results.
The company now expects like-for-like (LFL) net revenue growth of between 3% and 4% for the year, and is targeting more than 4% growth for its core Reckitt business, signalling renewed confidence after a period of transformation.
Core Reckitt, which houses leading brands such as Dettol, Durex and Finish, delivered a 4.2% rise in LFL net revenue in the first half, with emerging markets standing out at nearly 13% growth.
The company’s drive to cut costs and focus on its Powerbrands helped lift adjusted operating profit by 7% at constant exchange rates, to £1.7 billion, and boosted the adjusted operating margin by 1.1 percentage points to 24.6%.
Diluted adjusted earnings per share rose 4.4% to 168.4p, reflecting higher profit and a lower share count after buybacks.
While total reported net revenue edged down 2.6% to just under £7 billion due to currency movements, volume trends improved and the group highlighted “excellent growth in Emerging Markets and continued market share gains.”
Reckitt raised its interim dividend 5% to 84.4p and launched a new £1 billion share buyback.
Chief executive Kris Licht said the results marked “a significant step forward in reshaping Reckitt into a more efficient, world-class health and hygiene company,” with plans to return further capital following the sale of Essential Home.
The shares rose 440p to 5,480p.