27 October 2026
If you are covering Reckitt's latest results, please see the following comment from Chris Beckett, consumer staples analyst at Quilter Cheviot:
“Reckitt has delivered a disappointing third quarter, with sales growth coming in below expectations and the company trimming its full-year guidance. Manufacturing constraints meant it was unable to meet strong demand for Lysol in the US, while slower vitamin sales in China and weaker cold and flu sales added to the pressure. Volumes were broadly flat, meaning price increases continued to do most of the work in driving growth.
“There are some brighter spots. Emerging markets continue to perform strongly, helped by good growth from Dettol, while the company expects an improvement in seasonal cold and flu sales during the final quarter. Importantly, the issue with Lysol appears to be one of supply rather than a lack of consumer demand.
“Nevertheless, reducing full-year sales guidance from 4-5% to 3.5-4.5% is clearly disappointing and leaves growth running slightly below Reckitt’s medium-term ambitions. The shares trade at a discount to their historic valuation and peers, but investors will want to see evidence that these operational issues are being resolved and that stronger underlying demand can translate into better sales growth.”
