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Investing.com -- Reckitt reported stronger-than-expected third-quarter sales on Wednesday and reaffirmed its 2025 guidance, supported by robust demand in emerging markets and a rebound in its key developed regions.
The consumer goods maker posted a 7% increase in like-for-like (LFL) net revenue for the three months to Sept. 30, ahead of the 6.4% forecast in a company-compiled consensus.
The performance was led by its Core Reckitt business, which grew 6.7% on a LFL basis, driven by notable gains in emerging markets and renewed growth in Europe and North America.
Notably, emerging markets posted 15.5% LFL revenue growth in the quarter, led by strong performance in China and balanced gains from 7.4% volume growth and an 8.1% price/mix contribution.
Volume momentum in Core Reckitt remained strong, with third-quarter LFL net revenue reflecting 3.4% volume growth, up from 1.2% in the first half, alongside a balanced 3.3% contribution from price and mix.
Reckitt maintained its outlook for 2025, projecting more than 4% like-for-like revenue growth in its core operations and between 3% and 4% for the group as a whole. The company also said it expects another year of adjusted diluted earnings per share growth.
"These results reflect sequential volume improvements and the strength of our Powerbrands," CEO Kris Licht said in a statement.
RBC Capital Markets analyst James Edwardes Jones said this was "a good quality beat from Reckitt, with volume growth coming in 70bps ahead of expectations."
"Its improving track record of delivery and attractive growth in the Consmer Staples context should be well-received today," he added.
Reckitt, known for products such as Lysol disinfectants, added that it remains on track to complete the $4.8 billion sale of its Essential Home unit to private equity firm Advent by the end of the year.