𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Household goods giant Reckitt Benckiser has warned over a possible cost hit of up to £150 million if oil prices stay high due to the Iran war and said consumer demand would also be impacted.

The Dettol-to-Durex firm said if oil prices remain at 110 US dollars a barrel (£81.33) throughout 2026, it could leave the group nursing around £130 million to £150 million in higher costs.

It said this would be a “manageable level” to offset through actions including supply chain flexibility and pricing.

The group added: “While challenging to forecast, if commodity prices remain at significantly elevated levels throughout the year we would anticipate an impact on consumer demand as a result of pressure on household budgets.”

Shares in the FTSE 100 firm dropped by more than 5% in early trading on Wednesday.

Reckitt reported revenues rising by 0.6% on a like-for-like basis in its first quarter, as higher prices offset a 2% drop in sales by volume.

Its core business, excluding the Mead Johnson Nutrition arm, saw growth slow sharply to 1.3% from 5.9% in the previous three months as it was impacted by a weak cold and flu season globally, challenging trading in Europe and disruption from the Middle East conflict.

Sales in Europe dropped 4.2% in the first quarter.

But Reckitt said it was on track with guidance for like-for-like net sales to rise by 4% to 5% over the full year.

The group warned that profit margins were expected to drop in the first six months, partly due to the cost impact of the Iran war, though this will be counteracted by stronger profitability in the second half.

Chief executive Kris Licht said: “We maintain our like-for-like net revenue guidance for 2026.

“This will be driven by sequential growth from our market-leading Powerbrands, as the season resets and we continue to launch superior innovations including Mucinex 12-hour Cold and Fever, improved performance in Europe and continued strong growth across China, India and non-seasonal North America.”