Q1 2026: Solid Core, Tough Weather and Geopolitics – Outlook Stays Intact
Reckitt’s first quarter was a mixed bag. Core Reckitt delivered like-for-like (LFL) net revenue growth of 1.3% – that’s sales growth excluding currency and M&A effects – with Emerging Markets doing the heavy lifting. Strip out the seasonal over-the-counter (OTC) brands hit by a weak cold and flu season, and growth improves to 3.1%.
The headline message for investors: full-year guidance is unchanged. Management still expects Core LFL net revenue growth of 4% to 5% in 2026, with momentum building as the year progresses.
Key numbers from Reckitt’s Q1 2026
| Metric | Q1 2026 |
|---|---|
| Core Reckitt LFL net revenue growth | +1.3% (volume -1.0%, price/mix +2.3%) |
| Core LFL ex-seasonal OTC | +3.1% |
| Emerging Markets LFL growth | +7.6% (volume +0.5%, price/mix +7.1%) |
| Europe LFL growth | -4.2% |
| North America LFL growth | -0.9% (volume +1.5%) |
| Mead Johnson Nutrition (MJN) LFL growth | -2.7% |
| Core Reckitt net revenue (IFRS) | £2,598m (-1.2% YoY) |
| Group LFL growth (Core + MJN) | +0.6% |
| Group net revenue (IFRS) | £3,247m (-11.8% YoY, reflecting Essential Home disposal and FX) |
| Share buyback | £669m completed of £1 billion (as of 17 April 2026) |
Where the growth came from (and where it didn’t)
Emerging Markets lead, despite sanctions and conflict
Emerging Markets grew 7.6% LFL to £1,087m, powered by Dettol, Gaviscon and vitamins/minerals/supplements (VMS). China posted its eleventh straight quarter of double-digit growth, and India also grew double-digit. Not all plain sailing: Russia dragged due to tighter EU sanctions, knocking roughly 200bp off EM growth, and operations in the Middle East were disrupted by the war late in the quarter.
Europe: promotions bite and OTC season disappoints
Europe fell 4.2% LFL to £873m. Category growth was soft, and autodish (dishwasher) remained highly promotional. Seasonal OTC – cold and flu remedies – dropped double-digit after a light virus season. There are green shoots: Reckitt regained market leadership for Finish across major European markets, and premium lines like Finish Ultimate Plus posted double-digit value growth, which helped mix (+1.5% contribution).
North America: strong non-seasonals, weak seasonals
North America slipped 0.9% LFL to £638m, but volumes rose 1.5%. Lysol had another excellent quarter with double-digit growth and continued share gains across wipes, sprays and laundry sanitiser. Seasonal OTC fell double-digit as retailers destocked at the end of a milder season. Outside seasonals, brands like Finish, Durex and Veet grew, and execution with Walmart, Costco and Amazon improved.
Category check: Germ Protection shines, Household Care lags
- Self Care: -0.1% LFL to £831m. Excluding seasonal OTC, Self Care grew 6.9% LFL, led by high-single-digit Gaviscon and double-digit VMS (notably in China). Seasonal OTC declined 10.8% LFL on low incidence and retailer destocking.
- Germ Protection: +9.5% LFL to £854m. Dettol and Lysol both delivered double-digit growth, with innovation such as Lysol Air Sanitizer and Dettol Activ Botany supporting momentum.
- Household Care: -7.6% LFL to £524m. Finish grew in North America but faced a tough promotional slog in Europe and MENARP. Vanish declined high-single-digit, especially in LatAm and MENARP.
- Intimate Wellness: +0.3% LFL to £389m. Durex faced a VAT headwind in China (13% VAT on condoms) and tightened online marketing, partly offset by strong growth in India, South Africa and ASEAN. Veet and Intima grew.
Non-core MJN: softer North America comp, stable shares
Mead Johnson Nutrition fell 2.7% LFL to £531m, with volume down 6.8% and price/mix up 4.1%. The decline reflects a tough comparison in North America after inventory rebuild in Q1 2025; underlying performance was said to be in line with expectations. International delivered low-single-digit LFL growth, and overall market shares remain stable.
Guidance held: 2026 growth target and margin cadence
Reckitt maintains FY 2026 Core LFL net revenue growth of 4% to 5%. Drivers include a reset to a more normal cold and flu season, stepped-up innovation (notably “Mucinex 12 hour Cold and Fever” shipping in June in North America), improving execution in Europe, and sustained strength in China and India.
Margins are expected to be H2-weighted. Management guides that H1 2026 Group adjusted operating margin will be around 200bp below H1 2025 (24.6%), pressured by stranded costs from the Essential Home divestment, weaker high-margin seasonal OTC, and higher commodities. H2 should be “much stronger” as cost savings, mix and innovation kick in. Adjusted net finance expense is guided at £320m to £340m, tax at roughly 27%, and capex at about 4% of net revenue.
Costs, oil and geopolitics: key risk factors to monitor
- Oil sensitivity: If oil averages $110 for the rest of 2026, Reckitt estimates a gross input cost hit of £130m to £150m. Management believes this is manageable via hedging, productivity, pricing and the group’s gross margin profile. Still, persistently elevated commodities could weigh on consumer demand later in the year.
- Middle East and Russia: Q1 saw disruption to Middle East operations and a Russia drag due to sanctions changes. Q2 Emerging Markets growth is expected to be broadly in line with Q1, assuming similar disruption and no additional impacts beyond H1.
- Seasonal reset: The big swing factor is the cold and flu season. A return to normal incidence, plus Mucinex innovation, should lift the seasonal OTC line in H2 versus a weak Q1 base.
Capital returns and portfolio clean-up
The £1 billion share buyback continues, with £669m completed by 17 April 2026. The Essential Home disposal closed at year-end 2025, which explains the IFRS revenue step-down versus Q1 2025. Transition manufacturing and distribution revenue of £118m in Q1 2026 carries “very low” operating margin and is excluded from LFL.
My take: resilient core, credible H2 setup – but Europe and commodities keep it honest
This was not a fireworks quarter, but it was resilient given the hand dealt. The core engine works: Germ Protection is humming, non-seasonal Self Care is growing nicely, and China/India are doing the heavy lifting. The weak cold and flu season masked better underlying growth, and the guidance implies confidence that seasonals and innovation will do their job later in the year.
On the flip side, Europe remains tough and promotions in Household Care are painful. Seasonal OTC volatility is a reminder that incidence is a big swing factor. Commodity inflation and Middle East disruption are real wildcards, and H1 margin being c.200bp lower year-on-year leaves little room for execution missteps before H2 needs to bail it out.
For investors, the unchanged 4% to 5% Core LFL guide, H2-weighted margin recovery, and ongoing buyback are the key pillars. If Europe execution keeps improving, Mucinex lands well in Q2, and EM momentum persists despite sanctions and conflict, the year’s setup looks achievable. This remains a show-me story into H2, but the ingredients are in the cupboard.
What to watch next
- June launch and early sell-in of Mucinex 12 hour Cold and Fever in North America.
- Sequential improvement in Europe as category conditions stabilise and Finish share gains hold.
- Emerging Markets growth consistency amid MENARP disruption and Russia sanctions effects.
- Commodity and oil trends versus the £130m to £150m cost headwind scenario.
Further reading and events
Reckitt’s webcast and Q&A details are available here: Q1 2026 trading update.
