Finance
Dettol Maker Reckitt Misses Market Expectations for Q1 Sales Growth on Weak U.s., Europe
Published by Global Banking & Finance Review®
Posted on April 22, 2026
2 min readLast updated: April 22, 2026
Add as preferred source on GoogleQuick Summary
Reckitt’s core business like‑for‑like net revenue grew by just 1.3% in Q1—well below the ~2.9% forecast—dragged by soft demand in Europe and weak pricing in the U.S. The group reaffirmed its 2026 outlook despite these regional headwinds.
Dettol maker Reckitt warns of lower H1 margins after quarterly sales miss
Reckitt's Financial Performance and Market Challenges
Quarterly Revenue and Margin Outlook
April 22 (Reuters) - Dettol soap maker Reckitt missed quarterly like-for-like net revenue expectations for its core business on Wednesday and warned of lower first‑half margins, citing high oil prices and lower demand for its cold and flu products.
Its shares fell 5% in early trade to levels not seen since October 2024.
Factors Impacting Performance
The muted start to the year highlights the challenges facing consumer goods companies as they navigate weak consumer sentiment and prospects of higher costs as a result of the Iran war, which has sent oil prices and freight rates higher.
"While challenging to forecast, if commodity prices remain at significantly elevated levels throughout the year we would anticipate an impact on consumer demand as a result of pressure on household budgets," Reckitt said in a statement.
Profit Margin Expectations
In the first half, group adjusted operating profit margin is expected to be around 200 basis points below the 24.6% it reported for the same period last year.
Revenue Growth and Market Expectations
Reckitt reported a 1.3% growth in like-for-like net revenue for its core business for the three months to March, compared with 2.9% expected by analysts in a company-compiled poll.
Still, the company maintained its 2026 forecasts, assuming no further impact on its emerging markets from the war beyond the first half.
Emerging Markets Performance
Like-for-like revenue growth in its emerging markets, a key growth driver for Reckitt, was 7.6%, also missing average market expectations in the quarter.
Strategic Focus and Business Developments
Reckitt has over the past few years been refocusing on its core business, housing brands such as Durex condoms, Lysol cleaning products and cough medicine Mucinex, after the $4.8 billion sale of its Essential Home business in December.
Future Plans and Business Options
It is still considering options for its litigation-hit baby formula business Mead Johnson, which reportedly attracted interest from Danone in recent weeks.
(Reporting by Yadarisa Shabong in Bengaluru and Richa Naidu in London; Editing by Sonia Cheema and Muralikumar Anantharaman)
Key Takeaways
- •Core Reckitt LFL sales rose 1.3%, missing analysts’ ~2.9% estimate, as weak U.S. pricing and soft European demand weighed heavily
- •Emerging markets likely remain the growth engine, contrasting with underperformance in developed regions—including North America and Europe
- •Reckitt maintained its full‑year 2026 guidance of ~4–5% LFL growth for Core Reckitt, supported by its Fuel for Growth efficiency program and powerbrands strategy
Frequently Asked Questions about Dettol maker Reckitt misses market expectations for Q1 sales growth on weak U.S., Europe
1What was Reckitt's Q1 like-for-like net revenue growth?
Reckitt reported a 1.3% growth in like-for-like net revenue for its core business in Q1.
2Why did Reckitt miss market expectations for Q1 sales?
Reckitt missed expectations due to weak pricing in the U.S. and soft demand in Europe.
3What growth had analysts expected for Reckitt's core business?
Analysts had expected 2.9% like-for-like revenue growth for Reckitt's core unit in Q1.
4Did Reckitt change its 2026 outlook following Q1 results?
No, Reckitt maintained its 2026 outlook despite missing Q1 sales expectations.
