Reckitt Q3 India revenue hit by GST changes despite Dettol and Durex growth

British FMCG major Reckitt on Wednesday said implementation of new GST slabs in India impacted its net revenue growth in the September quarter.

However, the company reported volume-led growth in its germ protection brand Dettol in markets, including India, which helped it grow by double digits in the quarter.

Besides, in the Intimate Wellness category, its brand Durex continued to gain market share in India, Reckitt said in its earnings statement.

"We continued to drive encouraging sell-out performance in India, whilst LFL net revenue growth (low single digit) was impacted by the GST regime change in September. This resulted in a shift of trade orders to Q4," said Reckitt.

However, this short-term disruption, Reckitt said, its "like-for-like (LFL) net revenue growth in India remains high single digit through 2025 YTD.

Reckitt operates in the Indian market with power brands, which include Lysol, Vanish, Strepsils, Veet, Dettol, Harpic, and Durex.

Leading FMCG makers in India reported disruptions in trade channels in September due to the implementation of new GST slabs, which reduced prices and had a transitory impact on their quarterly revenue, along with a moderation in their operating profits.

The makers have tried to absorb the transitory impact of disruption in trade channels on account of GST reforms, though some of them expect the impact to drag on even in the month of October.

On September 4, the Indian government announced the Next-Generation (GST 2.0) reforms, lowering duties on most daily essentials, including food and personal care products, keeping in a lower slab of 5 per cent.

In the September quarter, Reckitt's total group net revenue was 3,611 million British Pounds, with a 7 per cent growth on a like-for-like (LFL) basis. Its volume growth was at 4.2 per cent.

In the emerging market, Reckitt's net revenue was at 1,080 million British Pounds, up 15.5 per cent.

Commenting on the results, Chief Executive Officer Kris Licht said: "We returned to growth in Developed Markets against a challenging consumer landscape and continued to deliver outsized growth in Emerging Markets. With our sharpened operating structure, we are executing our plan and progressing our strategic objectives to be a world-class consumer health and hygiene company. We are pleased with our performance and we are confident in delivering our full year 2025 guidance.

Over the outlook for 2025, Reckitt said, "We maintain expectations of Group LFL net revenue growth of +3 per cent to +4 per cent.