Reckitt unveiled stronger-than-expected sales in the third quarter amid a return to growth in developed markets.
Durex condoms and Dettol products performed strongly in the period, with the former selling particularly well in China, Reckitt said on Wednesday.
The group reported net revenues of £3.6billion, a 7 per cent increase on a like-for-like basis, bolstered by strong growth in its core products.
Core Reckitt products delivered like-for-like growth of 6.7 per cent, beating forecasts of 5.4 per cent.
Growth was led by performance in emerging markets, where like-for-like net revenue jumped 15.5 per cent.
The FTSE 100-listed business maintained its annual guidance, with group like-for-like net revenue growth expected to come in between 3 per cent and 4 per cent, and Core Reckitt lines forecast to exceed 4 per cent.
Popular: Reckitt unveiled stronger-than-expected sales in the third quarter
The company’s adjusted operating profit is expected to grow ahead of net revenue, while adjusted diluted earnings per share are also expected to rise.
Reckitt has narrowed its focus to core brands and is cutting costs to increase margins under boss Kris Licht as the sector contends with fragile consumer sentiment and pressure from private-label competitors.
Licht told shareholders: ‘We returned to growth in developed markets against a challenging consumer landscape and continued to deliver outsized growth in emerging markets.’
Mead Johnson infant nutrition posted like-for-like net revenue growth of 22 per cent, against a weak comparator due to the tornado disruption in 2024.
The firm’s Essential Home brands saw a decline of 4.9 per cent and the company expects a mid single-digit decline for the arm this year. The planned divestment of Essential Home remains on track for completion by the end of the year, Reckitt said.
Reckitt confirmed it had completed the first £250million tranche of its £1billion share buyback programme launched in July.
Russ Mould, investment director at AJ Bell, said: ‘Much of the growth delivered by the big consumer goods companies in recent times has come from emerging markets, with sales in the developed world proving more sluggish.
‘Having secured a deal to sell a majority stake in its Essential Home cleaning products division earlier this year, the focus is on how the so-called ‘Core Reckitt’ products are performing.’
He added: ‘Growth may be back on the menu in the developed world for Reckitt but emerging markets continue to lead the way.
‘The threat posed by unbranded alternatives is less in emerging markets and, for reasons of quality and safety, shoppers will stick with familiar names where possible.’
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