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Reckitt Faces US Cold‑Medicine Slump Amid Middle East War

Bloomberg Markets •
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Reckitt Benckiser Group Plc posted weaker‑than‑expected first‑quarter sales, as U.S. demand for its cold medicines faltered and Middle East supplies stalled.

The company’s flagship brands, including Strepsils lozenges and Dettol, grew only 1.3%, missing the 2.8% consensus estimate. Excluding U.S. OTC drugs, growth hit 3.1%, buoyed by a double‑digit jump in China.

Rising shipping and energy costs from the Iran conflict have rattled consumer spending and pushed Reckitt’s shares down 21% this year. CEO Kris Licht pushes a refocus on 11 core brands and divestitures of under‑performing units.

Despite the downturn, Reckitt maintains a 4%–5% full‑year growth outlook, banking on a U.S. demand rebound and strong emerging‑market performance, notably in India where cleaning products retain momentum.