Reckitt Beats Sales Expectations, Emerging Markets Drive Growth

Post by : Saif Nasser

Consumer goods company Reckitt, known for brands like Durex condoms and Lysol cleaning products, reported stronger-than-expected sales for the third quarter of 2025, helped by high growth in emerging markets.

The company said its like-for-like net sales — a measure comparing sales from the same set of products over time — rose 7% in the three months ending September 30. This exceeded analysts’ average forecast of 6.4%. Sales of Reckitt’s core brands in emerging markets jumped 15.5%, making these regions a bright spot for the company.

Emerging markets, including countries like China, accounted for about 42% of Reckitt’s core revenues during the quarter. Strong consumer demand in these countries helped balance weaker, though improving, results in Europe and North America.

Despite broader challenges in the consumer goods sector, including competition from private-label brands, Reckitt has focused on key “power brands” and cost-cutting measures to maintain healthy profit margins. Finance chief Shannon Eisenhardt said developed markets would remain difficult, with Europe showing flat growth and North America seeing low single-digit growth.

The company also confirmed it expects to complete the sale of its Essential Home business by the end of the year.

Reckitt maintained its full-year guidance for 2025, expecting like-for-like net revenue growth of more than 4% for its core business. Analysts welcomed the results, noting that while a revenue upgrade would have been an added bonus, the strong performance in emerging markets is a positive sign.

Shares of Reckitt were slightly lower on Wednesday, 0.1% down, after reaching their highest level since June 2023 earlier in the day. The results stand in contrast to some peers like L’Oreal, whose shares fell after reporting weaker-than-expected sales.

Overall, Reckitt’s strong performance highlights the growing importance of emerging markets for global consumer goods companies. The company’s focus on its most popular brands and cost management appears to be helping it navigate a challenging global market.