Latest news with #Reckitt
Time of India
3 days ago
- Business
- Time of India
UK's Reckitt raises revenue outlook after second quarter beats expectations
Consumer goods company Reckitt raised its annual revenue forecast on Thursday after second-quarter net sales growth topped expectations as strength in emerging markets offset weakness in North America and Europe. Shares jumped 10% to their highest level since early 2024 and were headed for their biggest one-day percentage gain since 2000. Reckitt, the maker of Durex condoms and Lysol cleaning products, is pivoting to focus on its 11 so-called "power brands" under CEO Kris Licht, as the sector grapples with weak demand and intense competition. The company reported like-for-like quarterly net revenue growth of 1.9%, compared with 1.7% forecast in a company-compiled consensus. Reckitt also announced a new share buyback programme of 1 billion pounds over the next 12 months. Growth in North America and Europe fell short of expectations, dragged by a challenging consumer backdrop and the expected shelf reset of its flu relief medicine Mucinex due to reformulation. But strong sales in China, India and Latin America made up for weakness in those key markets. Among Reckitt's other well-recognised brands are Strepsils throat lozenges and Harpic bathroom cleaning products. "We delivered excellent growth in emerging markets and navigated a challenging consumer environment in our developed markets," Licht said in a statement. Reckitt raised its 2025 like-for-like net revenue growth forecast for its core business to above 4%, from between 3% and 4% expected earlier. It now expects overall group like-for-like net revenue growth between 3% and 4% for the year, compared with an earlier forecast of 2% to 4% growth. The company last week sold a majority stake in its Essential Home business to private equity firm Advent for $4.8 billion. It is also looking at strategic options for its Mead Johnson division, which is the subject of a number of baby formula lawsuits in the U.S. Reckitt posted operating profit of 1.71 billion pounds ($2.32 billion) for the six months ended June 30, beating analysts' average expectations of 1.66 billion pounds.
Daily Mail
5 days ago
- Business
- Daily Mail
Demand for Durex in Europe and China boosts sales at consumer goods giant Reckitt
Sales of Durex condoms in Europe and China are boosting consumer goods giant Reckitt. Shares in the FTSE 100 firm, which also owns Dettol cleaner and Nurofen painkillers, soared 10 per cent, or 502p, to 5542p yesterday – a 17-month high. Reckitt hiked its revenue expectations after racking up sales of nearly £7billion in the first six months of 2025, and operating profit of £1.71billion, beating analyst expectations of £1.66billion. Sales were driven by a surge in demand in Europe and China, with its first non-latex condom achieving double-digit sales growth in France and Germany. It raised its sales growth expectations for this year to between 3 and 4 per cent from a previous forecast of 2 to 3 per cent. It comes after Reckitt last week agreed to sell its cleaning products unit including brands such as Cillit Bang and Air Wick to US private equity firm Advent International for £3.6billion. Reckitt, which will retain a 30 per cent stake, will refocus on its core brands, which also include Strepsils and Vanish.
Reuters
5 days ago
- Business
- Reuters
FTSE 100 notches record close on US-EU trade deal optimism, earnings boost
July 24 (Reuters) - Britain's FTSE 100 rose on Thursday to a record close, boosted by upbeat corporate results and optimism over a potential EU-U.S. trade agreement. The benchmark FTSE 100 (.FTSE), opens new tab closed up 0.9% at 9,138.37 points. The domestically oriented midcap FTSE 250 (.FTMC), opens new tab gained 0.6%. The personal care and grocery stores index (.FTNMX452010), opens new tab led sectoral gains, up 2.6%, boosted by Reckitt (RKT.L), opens new tab, up 9.9%, after the consumer goods company raised its annual revenue forecast. Healthcare stocks (.FTNMX201030), opens new tab rose 1.9% with AstraZeneca (AZN.L), opens new tab up 2.1% after the drugmaker's rare immune disorder drug succeeded in an advanced trial. GSK (GSK.L), opens new tab added 1.4% after the U.S. Food and Drug Administration on Wednesday extended its review of the drugmaker's blood cancer drug. Media stocks (.FTNMX403010), opens new tab advanced 2.3%, led by ITV (ITV.L), opens new tab, which rose 13.3% after the broadcaster's half-year results beat forecasts. Conversely, precious metal miners (.FTNMX551030), opens new tab fell 1.4%, tracking a drop in gold prices. Endeavour Mining (EDV.L), opens new tab fell 1.3%, and Fresnillo (FRES.L), opens new tab was down 2.1%. In company news, BT Group (BT.L), opens new tab advanced 10.4%, topping the FTSE 100 index, after the telecom firm named Patricia Cobian as its first female chief financial officer. Howden Joinery (HWDN.L), opens new tab soared 8.9% after reporting a rise in first-half profit. Vodafone (VOD.L), opens new tab gained 3.4% after reporting a 5.5% increase in organic service revenue in the first quarter. Airtel Africa (AAF.L), opens new tab soared 7.3% after posting higher quarterly results. Anglo American's (AAL.L), opens new tab copper and diamond production fell in the first half of the year. Shares of the miner edged 0.9% down. BP (BP.L), opens new tab will exit its planned green hydrogen production facility in Australia as it pivots back to oil and gas, a spokesperson said. Shares of the energy major were down 1.7%. Meanwhile, an EU spokesperson signalled that a U.S.-EU deal was within reach, which would result in broad 15% import tariffs on the 27-member bloc. Additionally, surveys showed British companies are struggling to grow and the job market continues to weaken, but inflation pressures are still lurking in the economy. A Reuters poll showed the Bank of England is expected to cut interest rates in August and November with steady economic growth anticipated. Britain and India also signed a free trade agreement.
Reuters
6 days ago
- Business
- Reuters
Reckitt lifts revenue outlook on strong Asia growth, shares surge
July 24 (Reuters) - Consumer goods company Reckitt (RKT.L), opens new tab raised its annual revenue forecast on Thursday after second-quarter net sales growth topped expectations, sending shares soaring, as strength in China and India offset weakness in North America and Europe. Shares jumped as much as 11% to their highest level since early 2024 and were among the biggest gainers on the pan-European STOXX 600 index (.STOXX), opens new tab. Reckitt, the maker of Durex condoms and Lysol cleaning products, is pivoting to focus on its 11 so-called "power brands" under CEO Kris Licht, as the sector is faced with weak demand and fierce competition. The company reported like-for-like quarterly net revenue growth of 1.9%, above the 1.7% forecast in a company-compiled consensus. It also announced a new 1 billion pounds share buyback over the next 12 months. Growth in North America and Europe lagged expectations, hit by a challenging consumer environment and the expected shelf reset of its flu medicine Mucinex due to reformulation. Licht said there was some stabilisation in those regions in the second quarter, but consumption remained "suppressed". "Even though consumption is a bit lower in our categories, we're still seeing some growth, and people are still spending. It's just much more measured," he said, referring to North America and Europe. But strong sales in China, India and good growth in Brazil, Colombia, Indonesia and Malaysia made up for weakness in developed markets. Chinese consumers were responding well to new innovation behind the Dettol brand, Licht said. Reckitt raised the like-for-like 2025 net revenue growth forecast for its core business to above 4%, from a 3% to 4% range previously. "A beat and raise is a rare occurrence in this market," said analysts at JPMorgan in a note. Reckitt now expects overall group like-for-like net revenue growth of 3% to 4% for the year, up from the previous 2% to 4%. The share price was last up 9%, heading for its biggest one-day percentage gain since November 2008. Last week, Reckitt sold a majority stake in its Essential Home business to Advent for $4.8 billion. It is also exploring options for its Mead Johnson unit, which faces several baby formula lawsuits in the U.S. The U.S. litigation may have some impact on timing of the eventual exit of Mead Johnson, Licht said. Essential Home and Mead Johnson, which are considered non-core, underperformed during the quarter. Reckitt posted operating profit of 1.71 billion pounds ($2.32 billion) for the six months ended June 30, beating analysts' average expectations of 1.66 billion pounds. Some investors worry Reckitt is more exposed than rivals to U.S. tariffs due to lower U.S. manufacturing capacity compared to Haleon (HLN.L), opens new tab and Unilever (ULVR.L), opens new tab. Once its new factory in the U.S. state of North Carolina becomes operational in 2027, the share of local U.S. sales could rise to 75% from 57%, Reckitt has previously said. Licht said he is considering further U.S. investments to "increase capacity and support innovation." ($1 = 0.7368 pounds)
Reuters
6 days ago
- Business
- Reuters
FTSE 100 hits record high on positive corporate news
July 24 (Reuters) - London's main stock indexes rose on Thursday, with the blue-chip index hitting an all-time intraday peak, boosted by upbeat corporate results and optimism over a potential EU-U.S. trade agreement. The internationally-oriented FTSE 100 (.FTSE), opens new tab rose 1% as of 0942 GMT, after hitting a record intraday high of 9,158.21 points earlier in the session, while the midcap FTSE 250 index (.FTMC), opens new tab rose 0.7%. The personal care and grocery stores index (.FTNMX452010), opens new tab led sectoral gains, up 2.5%, boosted by Reckitt (RKT.L), opens new tab, up 10%, after the consumer goods company raised its annual revenue forecast. Healthcare stocks (.FTNMX201030), opens new tab rose 1.7% with AstraZeneca (AZN.L), opens new tab up 2% after the drugmaker's rare immune disorder drug succeeded in an advanced trial. GSK (GSK.L), opens new tab added 1.1% after the U.S. Food and Drug Administration on Wednesday extended its review of the drugmaker's blood cancer drug. Retail stocks (.FTNMX404010), opens new tab advanced 2.2%, led by Howden Joinery (HWDN.L), opens new tab, which soared 11.1% to top the FTSE 100, after reporting a rise in first-half profit. Conversely, precious metal miners (.FTNMX551030), opens new tab fell 2.3%, tracking a fall in gold prices. Hochschild Mining (HOCM.L), opens new tab fell 4.5%, Endeavour Mining (EDV.L), opens new tab fell 2.2%, and Fresnillo (FRES.L), opens new tab fell 1.6%. In company news, BT Group (BT.L), opens new tab advanced 7.6% after the telecom firm named Patricia Cobian as its first female chief financial officer. Vodafone (VOD.L), opens new tab gained 4.5% after reporting a 5.5% rise in organic service revenue in the first quarter. ITV (ITV.L), opens new tab surged 9.9% after the broadcaster's half-year results beat forecasts. Airtel Africa (AAF.L), opens new tab soared 7.7% after posting higher quarterly results. AJ Bell (AJBA.L), opens new tab gained 3.1% on third-quarter assets growth. Meanwhile, two European diplomats said on Wednesday the European Union and the U.S. are edging toward a trade deal that could include a 15% U.S. baseline tariff on EU goods and possible exemptions. Additionally, British business activity grew only weakly in July and employers cut jobs at the fastest pace in five months, according to a survey that is likely to add to speculation about a Bank of England interest rate cut next month. Traders are currently pricing in an 82.3% chance of a 25 basis point BoE cut next month, according to data compiled by LSEG.
