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Like-for-Like Net Revenue Growth: 2.6% in the first half, with a stronger Q2 at 4.7%.

AOP Margin: 23.6% for core Reckitt and Mead Johnson, higher than expected.

Adjusted EPS: 152.1p in the first half, a 9.7% decline year-on-year.

Cash Returned to Shareholders: Approximately GBP3 billion during the period.

Share Buyback: Announced an additional GBP500 million share buyback.

Interim Dividend Increase: 5% increase announced.

Gross Margin: 60.5% for core Reckitt and Mead Johnson, down 50 bps.

Free Cash Flow: GBP419 million generated in the first half.

Net Debt to EBITDA: 2.5 times, in line with expectations.

Emerging Markets Growth: 9.4% like-for-like net revenue growth in Q2.

North America Growth: 0.8% like-for-like net revenue growth in the first half, 2.8% in Q2.

Europe Performance: Sequential improvement with a 1.5% decline in Q2.

Fuel for Growth Program: On track to deliver fixed costs below 19% of net revenue by 2027.

Release Date: July 29, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Reckitt Benckiser Group PLC (RBGLY) delivered a significant acceleration in Q2 with like-for-like net revenue growth of 4.2%, demonstrating strong performance across all areas and categories.

The company announced a new GBP500 million share buyback and a 5% increase in its interim dividend, reflecting its commitment to returning capital to shareholders.

Emerging markets showed strong high single-digit growth, particularly in China and India, with broad-based growth from ASEAN and Latin American regions.

Reckitt Benckiser Group PLC (RBGLY) continues to drive efficiency through its Fuel for Growth program, reducing fixed costs and enhancing its ability to invest in power brands.

The innovation pipeline remains robust, with successful product launches such as Mucinex 12-hour cold and fever in North America and the expansion of the Active Bardney range in China and other markets.

Negative Points

The company faced challenges in the Auto Dish category in Europe due to elevated promotional intensity, impacting market dynamics.

Reckitt Benckiser Group PLC (RBGLY) experienced headwinds from the Middle East conflict, affecting input costs and supply chain operations.

Adjusted EPS declined by 9.7% to 152.1p, primarily due to the divestment of Essential Home and higher input costs.

The Household Care category saw a decline of 6.6% in the first half, partly due to the impact of Russia Hygiene and promotional pressures in Europe.

The company anticipates a challenging environment in Europe, with modest growth expectations despite improvements in execution and innovation.

Story Continues

Q & A Highlights

Q: Can you clarify the like-for-like sales growth guidance for the core, including the impact of hygiene in Russia? A: Kris Licht, CEO, explained that the guidance of 4% to 5% like-for-like growth does not assume the closure of the Russia transaction. The confidence in achieving this is based on balanced growth, strong Q2 performance, and a robust innovation pipeline that is expected to continue driving growth.

Q: What is the basis for expecting higher incidence levels in seasonal OTC compared to the previous season? A: Kris Licht, CEO, stated that the previous season was abnormally low, and the expectation for slightly higher incidences is based on historical averages. The planning assumption is considered prudent, not aggressive.

Q: How has the Middle East conflict impacted your operations, and what are the gross margin trends in emerging markets? A: Kris Licht, CEO, noted that the conflict has caused some operational disruptions, but the company has managed these effectively. Shannon Eisenhardt, CFO, added that gross margins in emerging markets have been improving due to category mix and quicker pricing actions.

Q: Can you discuss the challenges in the Auto Dish category and your pricing strategy? A: Kris Licht, CEO, acknowledged that the Auto Dish category has been challenging due to heavy promotions, particularly in Europe. The company aims to focus on premiumization and rational promotional strategies. Pricing actions are being taken moderately across markets.

Q: What factors contributed to the better-than-expected margin performance in the first half, and what should we expect for the second half? A: Shannon Eisenhardt, CFO, explained that the first half benefited from less severe Middle East headwinds and favorable pacing of Fuel for Growth savings. The second half is expected to see improvements from mix and continued cost management.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.