Reckitt kept its full-year core organic growth guidance unchanged at 4% to 5% during a presentation at the Barclays 19th Annual Global Consumer Staples Conference on Tuesday, Sept. 8, 2026, while announcing a unanimous victory in a multidistrict litigation over infant formula safety.
CEO Kris said management has been waiting for the legal system to catch up with what he called widely accepted science. "I think we are at an important juncture where it's becoming clear that we are right, and also that we win," he said. The next scheduled court date is Nov. 27, though management noted that is subject to change. The litigation has been underway for more than two years.
Reckitt projected that emerging markets will deliver high single-digit growth in the second half of the year, consistent with the pace seen in the first half. In China, the company's largest emerging market, Dettol continues to grow strongly while Durex recovers from value-added tax headwinds in the first half; Move Free faced temporary headwinds from counterfeit products. Brazil exited the second quarter at mid-single-digit growth, and India routinely posted high single-digit to low double-digit growth.
Pricing increases took effect in emerging markets in April and May, with Reckitt expecting developed-market price adjustments to land on shelves in the U.S. and Europe in September and October. CFO Shannon cautioned that it is too early to assess price elasticity from the implemented increases. Management said it is avoiding deep promotional discounting in categories such as auto dish, which have seen extremes of up to 80% off.
In North America, Reckitt reported that upper respiratory sell-in was the strongest in seven years. The company expects Q3 performance to soften relative to Q2, with Q4 set to improve on easier comparisons and the onset of the upper respiratory season. In Europe, June was flagged as a positive month, with the region expected to return to growth mode in the second half.
Reckitt highlighted an innovation pipeline, with CEO Kris saying, "I would say we now have an innovation engine that is firing." The company also pointed to its record of paying dividends for 35 consecutive years and noted that its gross profit margins stand at 100%.
Operating overheads, which stood at 22% of net revenue three years prior, are targeted to fall below 19% by 2027. According to InvestingPro data cited at the conference, Reckitt's financial health score is 2.29, rated "fair."
