Reckitt CEO: European consumer market to remain tough

Reckitt CEO: European consumer market to remain tough

Reckitt CEO Kris Licht has reiterated that the European consumer market will remain challenging in the near term, citing persistent economic pressures and shifting consumer behavior. During Reckitt's Q3 2025 earnings call, Licht noted that Europe's "consumer is feeling some pressure," with flat category growth and value-seeking behavior impacting performance according to earnings call transcript. The region reported a 1.4% year-on-year revenue decline in 2025, reflecting weaker demand in developed markets as reported by The Grocer.

Licht attributed the difficulties to lingering inflationary effects and cautious consumer spending, stating, "We are in a moment where consumers are uncertain" following years of cost-of-living challenges as stated in the earnings call. Retailers, he added, are prioritizing value offerings, which has intensified competition and compressed margins in categories like household care and germ protection. Despite sequential volume improvements in Europe—rising from -4.7% in Q1 2025 to -0.5% in Q3—Licht emphasized that structural issues remain unresolved.

The CEO acknowledged Reckitt's premium positioning as a mitigant, with brands like Durex and Dettol maintaining strong equity. However, he warned that "the environment is not ideal" and that growth in Europe is unlikely to rebound significantly in the short term according to CEO commentary. Reckitt's 2025 results underscored this outlook, with North America and emerging markets—driven by double-digit growth in China and Vietnam—offsetting Europe's struggles as detailed in company reports. Licht reiterated the company's focus on innovation and premiumization to navigate the challenging landscape, while cautioning that "this is not a permanent situation" but one requiring sustained strategic adaptation as stated in the Q3 earnings call.

With Europe accounting for 32% of Reckitt's revenue according to Reuters, the region's trajectory remains a critical factor for the company's medium-term performance.