Reckitt Benckiser Group (3RB1) Q2 2026 Earnings Report

The call conveyed a constructive tone driven by clear Q2 acceleration, strong emerging market execution and successful innovation launches, supported by disciplined cost actions under the Fuel for Growth program and active shareholder returns. Material lowlights remain: the dilutive impact of the Essential Home divestment (pressuring EPS and operating profit), gross margin headwinds from higher input costs and commodity volatility, weakness in Household Care/Auto Dish and some developed-market softness. Management reiterated guidance and emphasized confidence in mitigation plans, leaving the narrative net positive but balanced by identifiable execution and macro risks.

Management reiterated full‑year guidance for Core Reckitt of 4–5% like‑for‑like net revenue growth and adjusted operating profit margin of 24.9–25.6% (Core Reckitt & Mead Johnson), expecting a significantly stronger second half; H1 saw group like‑for‑like net revenue +2.6% (Core Reckitt +2.7%) with Q2 acceleration to +4.7% group / +4.2% Core Reckitt, H1 adjusted EPS 152.1p (‑9.7% y/y), H1 free cash flow £419m and net debt/EBITDA 2.5x. The company expects emerging markets to deliver H2 growth similar to H1, Europe to return to like‑for‑like growth in H2, North America to be stronger and weighted to Q4, and seasonal OTC incidence to be slightly higher than the prior season; it reiterated Fuel for Growth targets (fixed costs below 19% of net revenue by end‑2027), with program cost ~£1bn (≈£350m in 2026), announced a new £500m 12‑month buyback, increased the interim dividend by 5%, and noted continued actions to mitigate volatile commodity costs.