Finance
Emerging markets propel Durex maker Reckitt past sales expectations
Published by Global Banking and Finance Review
Posted on October 22, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 22, 2025
2 min readLast updated: January 21, 2026
Reckitt exceeded Q3 sales expectations with strong growth in emerging markets, maintaining its full-year revenue guidance. Emerging markets accounted for 42% of core revenues.
(Reuters) -Consumer goods group Reckitt beat expectations for third-quarter like-for-like net sales growth on Wednesday, boosted by strength in emerging markets, which marked a bright spot for a sector weighed down by broader pressures.
Reckitt has narrowed its focus to core brands and is cutting costs to increase margins under CEO Kris Licht as the sector contends with fragile consumer sentiment and pressure from private-label competitors.
The maker of Durex condoms and Lysol cleaning products reported total group like-for-like net revenue growth of 7% for the quarter ended September 30, compared with analysts' average forecast of 6.4% in a company-compiled poll.
KEEPS FULL-YEAR REVENUE GUIDANCE
While rivals Unilever and P&G have yet to report results, Nestle, the world's largest packaged food company, announced plans earlier this month to cut 16,000 jobs, underscoring challenges the industry faces.
Reckitt, however, maintained its 2025 guidance for like-for-like net revenue growth of above 4% for its core business, which excludes Essential Home and Mead Johnson, and 3% to 4% for the group overall.
"These results reflect sequential volume improvements and the strength of our Powerbrands," Licht said in a statement.
Like-for-like revenue at Reckitt's core business, home to brands including Strepsils throat lozenges and Dettol handwash, rose 6.7% in the quarter, compared with 5.5% expected in the poll.
That was helped by stronger than expected like-for-like sales growth of 15.5% in emerging markets, which offset softer growth in other regions. Emerging markets accounted for about 42% of core Reckitt net revenues in the quarter.
"Its improving track record of delivery and attractive growth in the Consumer Staples context should be well-received," RBC Capital Markets analysts said.
Reckitt also said it continued to expect to complete the sale of its Essential Home business by the year-end.
(Reporting by Yadarisa Shabong and Pushkala Aripaka in Bengaluru. Editing by Rashmi Aich and Mark Potter)
Emerging markets are economies that are in the process of rapid growth and industrialization, often characterized by increasing investment opportunities and improving infrastructure.
Sales growth refers to the increase in sales revenue over a specific period, indicating a company's ability to expand its market presence and attract customers.
A consumer goods company produces products that are sold directly to consumers, including items like food, beverages, clothing, and household products.
Like-for-like sales growth measures the revenue growth of stores or businesses that have been open for a specific period, excluding new openings or closures.
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