Reckitt Benckiser, the consumer goods powerhouse, has seen an upsurge in profits, bolstered by its flagship brands and growth in emerging markets, even as North American performance wanes.
The group's revenue increased by 1.1% in the first quarter, fuelled by notable performance in China and India, where like-for-like revenue leaped by 10.7% compared to the previous quarter, as reported by .
However, overall sales in North America saw a dip of 0.9% due to "a volatile macroeconomic backdrop and weakening consumer confidence", contrasted by a 1.7% sales increase in Europe.
These two regions collectively contribute 60% of 'Core Reckitt' revenue, which forms 42.6% of the company's total revenue. Core Reckitt encompasses the core array of brands such as Dettol, Durex and Gaviscon, recording a like-for-like net revenue uptick of 3.1% in Q1 2025.
In line with its strategy to streamline operations, the company initiated a major restructure last year, aiming to divest its home care and nutrition segments.
As it navigates the changing marketplace, the company is eyeing an exit in 2025, acknowledging that market conditions could influence this timeline.
The announcement affected investor sentiment as company shares dipped nearly five per cent following early trading.
Reckitt Benckiser's CEO Kris Licht commented on the results: "We delivered a solid first quarter driven by Core Reckitt with continued strong growth in Emerging Markets.
"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."
Reckitt has maintained its full-year outlook, aiming for three to four per cent like-for-like net revenue growth in Core Reckitt and two to four per cent overall growth.
The company anticipates this growth will be spearheaded by emerging markets, with low-single digit growth in Europe and a slight decline in North America.
On the topic of tariffs, Reckitt provided an update on the impact of Trump's tariffs on its supply chain, describing the effect as 'immaterial.'
According to the company, its latest modelling "identifies an immaterial annualised impact on our [cost of goods sold] base which we are confident in mitigating over the short to medium-term through a number of levers."
These measures include ongoing manufacturing investments, such as the recent investment in their Wilson, North Carolina, manufacturing facility, strong brand equities with pricing power, and limited imports from China into the US, the company added.
Currently, the United States imposes a 10 per cent tariff on all countries and a hefty 145 per cent tariff on Chinese goods.
Reckitt has offices in Leeds, Manchester and Slough, with factories in Derby, Hull and Nottingham, and its R&D Centre in Hull.
