Reckitt trims annual sales guidance and flags more price rises as Iran war costs hit consumer goods

Centre · 1Reckitt Benckiser, the London-listed maker of Gaviscon, Vanish and Lysol, cut its annual sales outlook on Tuesday 27 October 2026 and said it had raised prices on some ranges. 1 Centre · 1It now expects like-for-like growth of 3.5% to 4.5% in its core business this year, down from a previous range of 4% to 5%, citing slumping North American sales after disruption to manufacturing of Lysol. 1 Centre · 1North American sales fell 1.3% in the third quarter; Reckitt expects Lysol and the wider North American business to rebound in the final three months of the year once what it called temporary manufacturing issues are resolved. 1

Centre · 1Chief executive Kris Licht said North America was below expectations and that, while demand for Lysol remains strong, temporary manufacturing constraints limited its ability to meet it. 1 Centre · 1In Europe, Australia and New Zealand, Reckitt took "selective pricing actions" to offset inflation it attributed to the Middle East conflict, with prices up 4% in the three months to 30 September. Like-for-like sales in the division rose 0.8% in the quarter, but volumes fell 3.2% as shoppers moved to discount rivals. 1 Mixed · 2Overall like-for-like sales in the core business rose 3.3%, excluding Mead Johnson Nutrition and the disposed Essential Home business. Shares fell about 6% in morning trading, and Reuters later put the fall at around 5%. 1 2

Centre · 1IG analyst Chris Beauchamp said investors should not be put off by the US miss, arguing growth looks broad-based and North American trading should recover in the fourth quarter. 1 Right · 1Reuters reported that Reckitt joined Coca-Cola, Procter & Gamble and Nestle in warning of further price rises next year, as higher energy, raw material and freight costs linked to the US war on Iran squeeze margins while shoppers remain reluctant to spend. 2 Right · 1Licht said consumers in Europe and North America are particularly squeezed and that companies must choose how much cost to pass on through pricing and how much to offset with promotions; he said "We will probably have to price more at this level of commodity costs and input costs." 2

Right · 1Peers sounded similar notes: Procter & Gamble raised its expected cost hit to $1.4 billion from $1 billion and its CFO said the industry is pricing up; Coca-Cola's CEO Henrique Braun said consumer pressure could extend into 2027; Nestle's CFO Anna Manz said it would price only to the extent it avoids damaging consumer penetration. 2 Right · 1Reuters noted that higher prices could keep inflation elevated into next year and that gas and grocery bills are a factor in the US midterm elections next week. 2