LONDON: Reckitt Benckiser Group reported a resilient first-half performance as it continued to reshape itself into a leaner, health- and hygiene-focused company, posting 4.2% like-for-like revenue growth in its Core business and announcing the divestment of its Essential Home division.
Group net revenue fell 2.6% to £6.98 billion due to foreign exchange headwinds, but Core Reckitt, which includes leading brands such as Dettol, Durex and Lysol, delivered £5.01 billion in net revenue, driven by double-digit growth in Emerging Markets. Operating profit margins in the Core segment rose 100 basis points to 25.9%, fueled by cost efficiencies and increased brand investment under Reckitt’s Fuel for Growth programme.
“We’ve taken a significant step in unlocking value with the divestment of Essential Home,” said CEO Kris Licht. “Our strategy is delivering — with improved execution, market share gains and volume momentum.”
The Essential Home division, which posted a 6.5% decline in LFL revenue, will be sold to Advent International for up to $4.8 billion. Reckitt will retain a 30% stake and expects to return around $2.2 billion to shareholders via a special dividend and share consolidation once the deal closes by year-end.
Adjusted diluted EPS grew 4.4% to 168.4 pence, while IFRS diluted EPS declined 13.2% to 139.8 pence, reflecting transformation-related costs and FX pressure. Free cash flow dropped 24.1% to £623 million, partly due to £201 million in restructuring costs.
Reckitt upgraded its full-year guidance for Core revenue growth to above 4%, citing continued momentum in China, India and Latin America. It also raised its outlook for Mead Johnson Nutrition following recovery from supply disruptions in 2024.