Highlights

  • Rothschild & Co Redburn assigns a ‘Buy’ rating on Reckitt Benckiser with a target price of GBP 6,700, indicating a 13.75% potential upside.
  • Group Q3 like-for-like (LFL) net revenue grew 7.0%.
  • The company reaffirmed its FY 2025 outlook, expecting 3%–4% Group LFL net revenue growth and another year of EPS growth.

Rothschild & Co Redburn (LSE:RKT) has issued a ‘Buy’ rating on Reckitt Benckiser Group plc (LSE:RKT), setting a target price of GBP 6,700, reflecting an upside potential of 13.75% from current levels. The rating follows the company’s announcement of its Q3 2025 performance, highlighting sustained growth in its Core Reckitt business, emerging market demand, and a maintained full-year outlook.

Group Performance Driven by Core Reckitt

Reckitt reported Group Q3 like-for-like (LFL) net revenue growth of 7.0%, supported by robust expansion in Core Reckitt, which achieved 6.7% LFL growth (YTD: +5.0%). This performance was led by broad-based gains across emerging markets and a return to growth in both North America and Europe.

Core Reckitt’s growth was volume-led, with 3.4% volume growth (versus 1.2% in H1) and a 3.3% price/mix contribution, marking a balanced growth algorithm. The company’s Mead Johnson Nutrition division reported a 22.0% LFL increase, as it recovered from the prior-year operational disruption caused by the July 2024 tornado.

Regional and Category Growth Momentum

Emerging markets remained a key growth driver, delivering 15.5% LFL net revenue growth in Q3 and 13.7% YTD, supported by balanced contributions from both volume (+7.4%) and price/mix (+8.1%).

Europe returned to positive growth, recording 0.8% LFL net revenue growth in Q3 (YTD: -0.3%), aided by innovation-led premiumisation and sequential volume improvements. In North America, Reckitt achieved 1.3% LFL growth (YTD: -0.7%), despite a challenging comparison to elevated demand during the pandemic period.

Category-wise, Intimate Wellness and Germ Protection led growth, supported by new product launches such as Durex Intensity and upgrades across the Benzocaine condoms and lubricants portfolio in China.

Strategic Execution and Outlook

Reckitt continued to execute its strategic priorities, advancing innovations across Self Care and Intimate Wellness, while maintaining progress on the divestment of the Essential Home business, which is expected to complete by 31 December 2025.

The company also advanced its GBP 1 billion share buyback programme, initiated on 28 July 2025, with GBP 250 million already completed as of 21 October 2025.

Looking ahead, Reckitt reaffirmed its FY 2025 guidance, expecting Group LFL net revenue growth of 3%–4% and Core Reckitt growth above 4%. The company anticipates adjusted operating profit growth ahead of revenue and another year of adjusted diluted EPS improvement.

Additional financial guidance includes:

  • Adjusted net finance expense: GBP 350–370 million (FY 2024: GBP 323 million).
  • Adjusted effective tax rate: Approximately 25% (FY 2024: 22.2%).
  • Capital expenditure: 3%–4% of net revenue (FY 2024: 3.3%).

About Reckitt Benckiser Group plc

Reckitt Benckiser Group is a global consumer health, hygiene, and nutrition company with a portfolio of trusted brands, including Dettol, Durex, Lysol, Nurofen, Finish, and Enfamil. Operating in over 60 countries, the company’s purpose is to protect, heal, and nurture in the relentless pursuit of a cleaner, healthier world.