Kris Licht reports Reckitt's core brands saw a 4.2% rise in like-for-like sales during the second quarter.
Kris Licht, the chief executive of Reckitt, reported that the company's core brands experienced a 4.2% rise in less-than-expected cost pressures. To offset these costs, the group implemented moderate price increases across most markets, including the UK, the US, and Europe. While volatile oil prices caused by the Middle East conflict initially posed a threat of a £150 million hit, Licht noted that prices have moderated, making the impact a manageable headwind. Reckitt's shares jumped more than 5% on Wednesday morning following the group's report of better-than-forecast sales. The company's underlying operating profits fell by 14.3% to £1.47 billion, but Licht explained this was primarily due to the sale of a 70% stake in the Cillit Bang and Calgon business. When this divestment was stripped out, first-half earnings were broadly flat and exceeded expectations.