Dettol and Durex maker Reckitt Benckiser profit rises despite North America woe

The consumer goods giant Reckitt Benckiser which operates Dettol Durex and Gaviscon achieved higher profits in Q1 2025 through brand excellence and market growth in emerging territories. The company achieved positive results through its strategic focus on efficiency along with its drive for innovation even though North American sales declined.

The group generated 1.1% revenue growth with China and India delivering 10.7% like-for-like revenue expansion during the previous quarter according to City AM. The North American market experienced a 0.9% sales reduction due to economic turbulence combined with reduced consumer confidence whereas European sales grew 1.7%. Core Reckitt represents 60% of the revenue base since it includes essential brands which delivered a 3.1% like-for-like revenue increase to reach 42.6% of total revenue.

Reckitt started its major operational restructuring in 2024 to divest both its home care segment and nutrition division. The business exit remains scheduled for 2025 yet market factors could extend or shorten this timeline. Early trading brought a share price decrease of approximately 5% because investors became cautious about the news.

CEO Kris Licht commended the organization's "solid first quarter" because of strong results from Core Reckitt alongside growing markets. The company continues its forward momentum to establish an efficient consumer health and hygiene organization through enhanced investments and innovation and the Fuel for Growth initiative according to Licht.

Reckitt maintained its full-year outlook by projecting 3-4% like-for-like net revenue growth for Core Reckitt and 2-4% overall because of emerging market expansion. The European market should experience small-digit growth while North America might experience a minimal decrease.

The global tariff structure established by President Trump including a 10% rate for all goods and 145% on Chinese products has shown no material impact on the company according to Reckitt. The company predicts its cost of goods sold will remain unaffected through manufacturing investments at its Wilson North Carolina facility and strong brand pricing power together with reduced U.S. imports from China.

The global trade challenges facing Reckitt will not affect its growth because the company operates multiple offices across Leeds Manchester and Slough and has factories in Derby Hull and Nottingham as well as an R&D centre in Hull. The company maintains a strong position to face North American economic difficulties because of its operational excellence and market adaptability while pursuing its aggressive growth plan.