By Adria Calatayud

Lysol maker Reckitt Benckiser Group is scheduled to report results for the first quarter on Wednesday. Here is what you need to know.

REVENUE FORECAST: The U.K. consumer-goods group is expected to report net revenue of 3.69 billion pounds ($4.94 billion) for the first quarter, according to consensus estimates provided by the company. This compares with the 3.74 billion pounds it reported for the same period last year. On a like-for-like basis, Reckitt's net revenue is expected to grow 1.4%, with a 2.8% increase in its core operations--which include Lysol disinfectant and Durex condoms--diluted by declines in its essential home and Mead Johnson Nutrition segments, according to the same consensus.

Shares in Reckitt rose 8.2% in the first quarter, but gave up much of those gains at the beginning of April amid market turmoil driven by President Trump's tariff plans. The stock was up 1.6% since the beginning of the year through Thursday's close, before a long weekend in U.K. markets due to the Easter break.

WHAT TO WATCH

--TARIFF EXPOSURE: Reckitt has a relatively high exposure to U.S. tariffs given that 43% of its sales volumes in the country are imported, Hargreaves Lansdown senior equity analyst Matt Britzman said. This raises questions about potential price increases or margin pressure in the U.S., Britzman said.

--TRANSFORMATION: The group is in the midst of a major transformation. As part of the plan, it aims to exit its essential home segment--which houses brands such as Air Wick, Mortein, Calgon and Cillit Bang and makes up 14% of its revenue--by the end of the year and is evaluating opportunities for baby formula maker Mead Johnson Nutrition, which accounts for 15% of its revenue. The Mead Johnson Nutrition business is likely to post a 2% decline in organic sales for the quarter, partly due to the lingering effect of disruptions caused by tornado damage at a key U.S. warehouse and the high sales it reported for the year-earlier period, UBS analyst Guillaume Delmas wrote in a note to clients. Investors will be looking for updates on how quickly Reckitt can exit these areas, Hargreaves Lansdown's Britzman said.

--NEW REPORTING STRUCTURE: This will be Reckitt's first quarterly update since it changed its reporting structure to three segments--its core operations, essential home and Mead Johnson Nutrition. The company's 2025 guidance calls for like-for-like net revenue growth of 2% to 4% for the group as a whole, with diverging performances across its businesses. Reckitt expects like-for-like net revenue growth of 3% to 4% at its core business--which represent 71% of the group's revenue--and low-single growth in both essential home and Mead Johnson Nutrition. Essential home and Mead Johnson Nutrition will experience revenue declines in the first half, it said.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

April 22, 2025 09:02 ET (13:02 GMT)

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