1) Financial Performance Overview
- Core Reckitt net revenue grew 5.2% YoY, exceeding guidance of above 4%.
- Group net revenue increased 5%, with Mead Johnson Nutrition up 3.8%.
- Adjusted operating profit rose 5.3%, with core margins expanding 90 basis points to 26.7%.
- EPS grew 1.1%, supported by a share buyback program, with GBP 2.3 billion returned to shareholders through dividends and buybacks.

2) Segment Results and Growth Drivers
- Emerging Markets: Strong growth of 14.6% in net revenue, driven by double-digit growth in China and India.
- Developed Markets: Weaker performance due to a tough consumer environment and a soft cold and flu season, with net revenue in Europe declining 1.4%.
- North America: Flat revenue growth at 0.2%, but nonseasonal brands showed resilience with low single-digit growth.
- Category Performance: Intimate Wellness was the fastest-growing category at 12.5%, while Household Care saw a slight decline of 0.4%.

3) Operational and Strategic Initiatives
- Continued focus on the Fuel for Growth program, which is driving simplification and effectiveness across the business.
- Significant investments in supply chain improvements, with CapEx rising to GBP 592 million in 2025.
- Innovations such as the Durex Intensity condom launched in 18 countries and new product extensions across various brands.
- Plans to enhance omnichannel capabilities, particularly in North America, to drive growth and improve customer access.

4) Challenges and Market Headwinds
- The consumer environment in Europe remains challenging, with promotional intensity increasing and category growth slowing.
- Seasonal OTC brands faced declines due to a weak cold and flu season, impacting overall performance in developed markets.
- Anticipated increase in fixed costs in 2026 due to stranded costs from the Essential Home divestiture, although expected to decline below 19% by 2027.

5) Guidance and Outlook for 2026
- Guidance for 2026 includes 4% to 5% net revenue growth, primarily driven by emerging markets.
- Expectation of continued challenges in Europe, particularly in Q1, which may see growth below full-year guidance.
- Strategic focus on maintaining market share and driving premiumization across categories, particularly in Europe and North America.
- The company is exploring strategic options for Mead Johnson Nutrition, with no specific timeline set for potential changes.

Bottom line: Reckitt delivered solid financial results in 2025, driven by strong performance in emerging markets and effective operational strategies. However, challenges in developed markets and increasing costs may pressure margins in 2026. The focus on innovation and premiumization positions the company for sustainable growth, making it a potentially attractive investment for shareholders.