Reckitt Benckiser Group (RKT) H1 2026 earnings summary

Executive summary

• Delivered 2.6% like-for-like net revenue growth for the group in H1 2026, reaching £6,411m, with Q2 accelerating to 4.7% and all business areas improving.

• Innovation, portfolio focus, and digital initiatives drove performance, especially in emerging markets and through new product launches.

• Strategic initiatives, including the Fuel for Growth programme, reduced fixed costs and increased investment capacity.

• Essential Home divestment impacted EPS and margins, but underlying business momentum remained strong.

• Over £3 billion returned to shareholders in H1 2026, with a new £500 million buyback and a 5% interim dividend increase.

Financial highlights

• Core Reckitt and Mead Johnson like-for-like net revenue grew 2.6% in H1; Core Reckitt up 2.7%, Mead Johnson up 2.0%.

• Adjusted operating profit margin for Core Reckitt + MJN was 23.6%, with adjusted diluted EPS at 152.1p, down 9.7% due to Essential Home divestment.

• Gross margin for Core Reckitt + MJN was 60.5%, down 50bps; group gross margin 58.5%, down 250bps.

• Free cash flow was £419m, with cash conversion at 42%.

• Interim dividend per share up 5% to 88.6p; over £3bn cash returned to shareholders in H1 2026.

Outlook and guidance

• Full-year 2026 guidance reiterated: 4%-5% like-for-like net revenue growth for Core Reckitt; adjusted operating profit margin expected at 24.9%-25.6%.

• H2 2026 margin expected to be stronger than H1, driven by favorable mix and cost mitigation.

• Emerging markets expected to maintain broad-based growth; Europe to return to growth in H2; North America weighted to Q4.

• Fuel for Growth program expected to largely offset stranded costs from Essential Home divestment.

• Sustainable long-term EPS growth ambition reiterated, despite Essential Home dilution.