Reckitt Soars on Strong Second-Quarter Sales: Major Revenue Forecast Boost
Reckitt reported a significant increase in its annual revenue forecast following a second-quarter net sales growth that surpassed expectations. The company experienced strong sales in China and India, counterbalancing North American and European weaknesses. Reckitt plans a new share buyback and continues focusing on core brands amidst a fierce competitive landscape.
Reckitt, a leading consumer goods company, has elevated its annual revenue forecast following an impressive second-quarter net sales growth that exceeded predictions, leading to a substantial rise in its shares. The robust performance was driven by outstanding sales in China and India, which compensated for weaker demand in North America and Europe.
The company, famous for brands like Durex and Lysol, has shifted its strategy under CEO Kris Licht to focus on its top 11 "power brands," amidst a challenging consumer environment. Reckitt reported a like-for-like quarterly net revenue growth of 1.9%, surpassing the expected 1.7%.
Additionally, Reckitt announced a 1 billion pounds share buyback initiative for the next year. While its growth in developed markets has been sluggish, countries like Brazil and Indonesia showed promising sales performances. The company forecasts a like-for-like 2025 net revenue growth for its core business to exceed 4%.
(With inputs from agencies.)
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