Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) reported a stronger-than-expected sales performance in the third quarter, helped by a return to growth in developed markets.
The FTSE 100-listed consumer health and hygiene company reported net revenues of £3.6 billion, a 7% rise on a like-for-like basis, supported by strong growth in its core products. Analysts were expecting a rise of just over 6%.
Core Reckitt products delivered LFL growth of 6.7%, beating the City consensus of 5.4%, as volumes improved to 3.4% from 1.2% in the first half, while price/mix added 3.3%.
Growth was led by performance in emerging markets, where like-for-like net revenue increased 15.5%.
Full-year 2025 guidance was maintained, with group like-for-like net revenue growth expected between 3% and 4%, and Core Reckitt forecast to exceed 4%.
Adjusted operating profit is expected to grow ahead of net revenue, and adjusted diluted earnings per share are also expected to increase.
Chief executive Kris Licht said: "We returned to growth in developed markets against a challenging consumer landscape and continued to deliver outsized growth in emerging markets.”
The company noted volume-led momentum across all categories, with growth in intimate wellness (Durex condoms) and germ protection (Dettol) supported by innovation.
Mead Johnson infant nutrition posted LFL net revenue growth of 22%, compared to a weak comparator due to the tornado disruption in 2024.
The Essential Home brands saw a decline of 4.9% and the company now expects a mid single-digit decline for the segment in 2025. The planned divestment of Essential Home remains on track for completion by the end of the year.
Reckitt confirmed it had completed the first £250 million tranche of its £1 billion share buyback programme launched in July.