Reckitt Benckiser Group (LSE:RKT), the maker of Dettol, Lysol and Durex, reported first-half like-for-like net revenue growth of 2.6%, with quarterly growth accelerating to 4.7% in the second quarter.
The Board raised the interim dividend to 88.6p, up 5% from 84.4p a year earlier, and announced a new buyback programme to repurchase up to £500 million of shares over the next twelve months.
Chief executive Kris Licht said all of the group's regions and categories accelerated in the second quarter, with "a balanced contribution from volume and price/mix."
Emerging Markets led the acceleration, growing 9.4% in the quarter, while North America returned to growth at 2.8% and Europe narrowed its decline to 1.5%.
Reported IFRS net revenue fell 8.1% to £6,411 million, reflecting the divestment of the Essential Home business, which also dragged adjusted diluted earnings per share down 9.7% to 152.1p. Adjusted operating profit margin for Core Reckitt plus Mead Johnson Nutrition came in at 23.6%, ahead of the company's expectations, aided by its Fuel for Growth cost programme offsetting stranded costs from the disposal.
Net debt rose to £9,380 million, equivalent to 2.5 times adjusted EBITDA, following February's £1.6 billion special dividend and continued buybacks; the group has returned £6.4 billion to shareholders since July 2024.
Reckitt reiterated its full-year guidance for Core Reckitt like-for-like revenue growth of 4% to 5% and an adjusted operating margin of 24.9% to 25.6% for Core Reckitt plus Mead Johnson Nutrition.
News Intelligence what this means for the company
Reckitt reported accelerating second-quarter growth to 4.7% and reaffirmed full-year guidance, with Emerging Markets leading at 9.4% growth and North America returning to positive territory. The company backed the update with a 5% dividend raise to 88.6p and a new £500m buyback, signalling confidence despite net debt rising to £9,380m (2.5x adjusted EBITDA) following a £1.6bn special dividend in February and £6.4bn in total shareholder returns since July 2024.
The acceleration in like-for-like growth and margin resilience (23.6% adjusted operating profit margin, ahead of expectations) support the reiterated 4–5% full-year guidance and 24.9–25.6% margin range. However, the rising leverage and aggressive capital return programme—£6.4bn deployed in under a year—leave limited financial flexibility if growth stalls or cost pressures resurface.
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