Reckitt reported first-half net revenue of £6.4bn (£6.2bn expected), reflecting like-for-like (LFL) growth of 2.6%. This was driven by better-than-expected performances in Emerging Markets and Mead Johnson Nutrition.
Adjusted operating profit came in at £1.5bn (£1.4bn expected), down 14.5% ignoring exchange rates. The decline was due to unfavourable cost inflation and product mix, but faster-than-expected progress on its cost-saving programme helped drive the beat.
Free cash flow fell 32.7% to £419mn, reflecting lower cash generation following the Essential Home disposal. Net debt increased from £8.4bn to £9.4bn.
For 2026, the group maintains its guidance of 4-5% LFL net revenue growth.
The group increased its interim dividend by 5.0% to 88.6p per share, and a new £0.5bn share buyback programme was announced.
The shares rose 7.2% in early trading.
Our view
HL view to follow.
Reckitt key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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