EU sanctions revised last year barred Reckitt Benckiser from exporting cleaning and germ‑protection items to Russia, wiping out a key revenue stream for its emerging‑market household care division. The restriction forced the Dettol maker to halt shipments of products that previously accounted for a sizable share of sales in the region, triggering a double-digit decline in the quarter.

Overall, the emerging‑market arm, which contributes 42% of group turnover, grew 7.6% versus analysts’ 10.7% expectation. Group sales fell 1% after a 4.5% slump in Europe’s cold‑and‑flu segment. Despite the hit, Reckitt kept its 2026 net‑revenue target of 4‑5% growth, though the stock slipped more than 6% in early trade.

Reckitt confirmed its effort to shift ownership of the Russian business, launched in April 2022, is still underway. The local unit is creating new product formulas and registering intellectual property to circumvent the branding ban, aiming to preserve some market presence despite the export curtailment.

Higher input costs, chiefly from oil‑linked plastic pricing, could impose a £150mn hit on the 2026 cost base. Reckitt plans to absorb the pressure through supply‑chain efficiencies, hedging and modest price hikes, while warning that sustained commodity spikes may squeeze consumer spending on discretionary items.