FOCUSED AND

DELIVERING

Annual Report and Accounts 2025

Our purpose is to protect, heal and nurture in

pursuit of a cleaner, healthier world

2025 was a year of delivery as we sharpened our strategic focus

and strengthened our foundations for sustainable growth. We

have simplified the Business and aligned behind the Powerbrands

that now represent the majority of our net revenue. Across

markets and categories, we are executing with excellence, driving

efficiency, improving performance and investing in the

innovations of the future, delivering consistently, building

momentum and generating value for our shareholders.

CONTENTS

STRATEGIC REPORT

1 At a Glance

2 Chair’s Statement

4 Chief Executive Officer’s Statement

7 Business Model

8 Foundation – People and Culture

10 Foundation – Core Reckitt

andPowerbrands

12 Execution – Winning Playbook

14 Execution – Supply and Value Chain

15 Execution – Market Execution

17 Performance – Delivering Results

18 Performance – Fuel for Growth

20 Performance – KPIs

21 Reinvestment – Ambition

andShareholderValue

22 Reinvestment – Reinvesting for Growth

24 Self Care

26 Germ Protection

28 Household Care

30 Intimate Wellness

32 Mead Johnson Nutrition

33 Essential Home

34 Financial Performance

42 Sustainability Performance

47 Non-Financial and Sustainability

Information Statement

48 Risk Management

52 Viability Statement

GOVERNANCE

53 Chair’s Introduction to Governance

54 Board Leadership

56 Senior Leadership

57 Corporate Governance Report

65 Stakeholder Engagement

68 Section 172 Statement

69 Nomination Committee Report

74 Audit Committee Report

82 Compliance Committee Report

84 Directors’ Remuneration Report

112 Report of the Directors

116 Statement of Directors’ Responsibilities

FINANCIAL STATEMENTS

117 Independent Auditor’s Report

133 Group Financial Statements

179 Parent Company Financial Statements

186 Subsidiary and Other Related

Undertakings

OTHER INFORMATION

198 Climate-Related Financial Disclosures

203 Alternative Performance Measures

210 Shareholder Information

FOCUSED AND

DELIVERING

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Average number of

employees

36k

Number of countries

whereweoperate

RECKITT IS HOME TO SOME

OF THE WORLD’S BEST-LOVED

CONSUMER BRANDS

Portfolio of Powerbrands

Our Business is centred on 11 Powerbrands

that are trusted by people around the world.

Market leaders in their categories, they deliver

reliable, science-based solutions to evolving

health and hygiene needs.

Core Reckitt

The strategic heart of our Business represents

a focused portfolio shaped to drive value

creation across four key categories, all poised

for long-term growth through investment,

category penetration and market expansion.

Strategic report Governance Financial statements Other information

Reckitt Annual Report and Accounts 2025

Strepsils, Mucinex, Gaviscon and Nurofen

provide trusted over-the-counter

treatments that support millions to take

charge of their health at home.

Lysol, Dettol and Harpic protect against

the spread of germs and drive widespread

adoption of good hygiene habits, the

foundation of healthy lifestyles.

Finish and Vanish are global leaders

shaping the future of everyday cleaning

through solutions that save time, simplify

routines and give better results.

Durex and Veet bring science-led

solutions to sexual health and grooming,

supporting comfort, trust and positive

experiences for consumers worldwide.

Like-for-like

net revenue growth

5.0%

2024: 1.4%

IFRS net

revenue growth

0.3%

2024: -3.0%

Adjusted total EPS

diluted

352.8p

2024: 349.0p

IFRS total EPS

diluted

1,2

467.2p

2024: 203.2p

Cash returned to

shareholders

£2.3bn

2024: £2.7bn

Net revenue from

more sustainable

products

37.9%

2024: 34.9%

People positively

impacted by social

impact programmes

1,3

38mn

2024: 29mn

At a Glance

Read more about our categories on pages 24 to 31

SELF CARE GERM PROTECTION HOUSEHOLD CARE INTIMATE WELLNESS

1 Adjusted and other non-GAAP measures, definitions and terms are defined on page 203

2 IFRS operating margin and EPS are impacted mainly by the completion of the Essential Home disposal, an intangible asset impairment charge and restructuring costs, see page 34 for more details

3 Cumulative since 2020

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Strategic report Governance Financial statements Other information

Chair’s Statement

The Board and I remain fully behind the

strategy which, at its heart, is about a

sharpened focus on 11 much-loved and

trusted Powerbrands. All of these well-known

brands are leaders in attractive and growing

categories, boosted by long-term tailwinds

from global demographic and macroeconomic

trends, such as consumers’ greater interest

inhealth, wellness and hygiene.

Honing our portfolio to Core Reckitt also

means that some parts of Reckitt have

become non-core and so in December we

completed the divestiture of Essential Home.

While this business has some outstanding

brands and an excellent management team,

we recognised that another owner would

bebetter placed to maximise its inherent

potential. As an ongoing equity shareholder,

we look forward to the value creation we

believe its new ownership will unlock.

To support our streamlined portfolio, we also

created a more effective operating model

and a simpler organisation, and I am pleased

to say that these are now embedded. Change

is not always easy, but we firmly believe this

work has been right and important for Reckitt

and our stakeholders, and I want to recognise

the significant efforts and talent of both the

management team for leading the charge,

and our employees around the world for

theirfocused execution and delivery.

SHARPER, SIMPLER

AND FIRMLY FOCUSED

ON THE FUTURE

We are confident

of Reckitt’s

strengths and

potential to deliver

growth and value

creation. Our

objective is to

create one ofthe

strongest growth

andmargin profiles

of our peer group.

Sir Jeremy Darroch

Chair

2025 was a year of progress

forReckitt. We are in a strong

position, with the foundations

inplace to underpin sustainable

long-term performance.

We are more agile and intentional and,

therefore, better able to navigate global

challenges and seize the opportunities that

make us more competitive. We are focused

and delivering, but we also know that there

ismore to do.

The foundations for growth are built

anddelivering

Last year, we laid out an update to our

strategy,to streamline our portfolio, simplify

our organisation, and refresh our leadership

and Board. The plan was bold, with many

simultaneous actions and an ambitious

timeline, but the objective was clear: to build

aworld-class health and hygiene company

with one of the strongest growth and margin

profiles of our peer group; a business that

would create enduring returns for shareholders,

both now and for years to come.

Leadership that brings experience,

insight and value to everything we do

Change has not been limited to our strategy

and operations. We have also considered how

we think about governance and stewardship

of the Company, and this has led to changes

within our Board of Directors. The role of the

Board is, of course, to oversee the execution

and delivery of the corporate strategy in a

way that is both supportive and challenging.

As such, we continue to review Board

succession and bring in Directors with insight

that matches our strategic priorities, leaders

who can really add value and perspective

toour management team of the future.

This includes Pat Verduin, who joined the

Board in June 2025 and now chairs the

Compliance Committee. As the former Chief

Technology Officer at Colgate Palmolive,

Pathas extensive experience in global R&D

and product safety and quality, along with

expertise in driving innovation and improving

product sustainability. We were also pleased

to welcome Stefan Oschmann and Mahesh

Madhavan earlier in the year, and I would like

to extend sincere thanks to Mary Harris and

Mehmood Khan who both stepped down

during the year. I wish them well in their

futureendeavours.

Reckitt Annual Report and Accounts 2025

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Chair’s Statement continued

During the year, Board members were able

toexperience Reckitt’s corporate culture

firsthand. For example, a visit to our Science

&Innovation Centre in Hull demonstrated

howdigital improvements and GenAI are

expanding Reckitt’s R&D capabilities, and we

dug into our local partnerships and community

outreach, which are hugely important in this

city where Reckitt was born. Meanwhile, a

visit to Nottingham was a chance to learn

howvalue creation sits at the very heart of

the factory. I was also pleased personally to

explore our operations in the USA and Italy,

and find out more about performance,

priorities and the long-term growth trajectory

with teams in those regions. More details

canbe found on page 15.

In November, a UK employee workshop

enabled the Board to hear directly from

colleagues across four key areas: category

growth and sustainability, excellence in

execution, transformation and the next

generation of Reckitt leaders. It was also

akeymoment to hear about life at Reckitt

during this year of transition.

Our distinctive culture unifies

colleagues and teams across the world

The feedback we received from colleagues

during all of these engagements has

reinforced just how important Reckitt’s

cultureis. As a multinational organisation, we

necessarily tailor our execution to the cultural

norms of the markets in which we operate,

but the corporate culture is the universal glue

that connects and drives teams across the

Business. No matter the region or country,

itisour culture, more than anything else,

thatwill lead Reckitt to grow and succeed.

A business really can only be as good as

itspeople and here Reckitt is extremely

fortunate. We have a strong pool of talent

across all our geographies and our people

areresilient, energetic and motivated by

challenge and opportunity. After nearly two

years as Chair, I have witnessed myself the

lengths our people go to, to make the

Business better, and the Board and I thank

them for their commitment and contributions.

Creating greater value for our

shareholders

Finally, I would like to thank our shareholders

for continuing to support our Business. I have

been pleased to see we are starting to create

the shareholder value that was formerly a

hallmark of Reckitt’s reputation and that we

are once more gaining market recognition.

Itis yet more evidence that our strategy

isworking.

The Board and management team are all

focused on and committed to continuing this

shareholder value creation journey. This means

running the Business in a disciplined way and

deploying our capital in support of the most

important growth opportunities that allow us

to meet our goals. We will also always return

excess capital to shareholders and I am

pleased to say we returned £2.3 billion to

shareholders through our share buyback

programme and dividends paid in the year.

At this moment in time, Reckitt is exactly

where we want to be and, indeed, where

weexpected to be. We are more focused

andwe are delivering. The job ahead is

tokeep on delivering.

Sir Jeremy Darroch

Chair

Addressing colleagues at the 2025 Reckitt Leadership Conference

Celebrating 50 years of innovation and excellence at our factory in Nottingham, UK

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Our top-line

growth was

driven by the

strength of the

11Powerbrands

atthe heart of

Core Reckitt.

Chief Executive Officer’s Statement

Our top-line growth was driven by the

strength of the 11 Powerbrands at the heart

ofCore Reckitt. Meanwhile, our increased

operational efficiency, disciplined capital

allocation and our Fuel for Growth programme

contributed to adjusted operating profit

growth of 5.3%.

Beyond our financial performance, improved

execution has enabled us to better contribute

to a cleaner, healthier world through our

products, partnerships and the decisions

wetake to ensure that we grow responsibly.

Sustainability is embedded in how we operate

and how we create long-term value, shaping

our choices on carbon, packaging, water and

responsible practices across our value chain

and in our local communities.

Our people and our distinctive culture at

Reckitt are huge drivers of our success, with

an equal emphasis on ‘how’ we operate as

well as ‘what’ we do. It is the dedication of

our people that has driven our simultaneous

transformation and business performance

in2025 and I am both proud of their

achievement and hugely grateful.

A BIG STEP FORWARD ON

RECKITT’S TRANSFORMATION

Kris Licht

Chief Executive Officer

Throughout 2025, our leaders

have focused on delivering the

strategy we laid out in 2024; to

streamline our portfolio, simplify

our organisation and improve

ouroperating model. We took

major steps forward on the

transformation of our Business,

including the divestment of

Essential Home.

Against this backdrop of focused change,

Iamvery pleased that we delivered full

yearresults ahead of our expectations,

demonstrating that our actions are already

delivering benefits. Despite a challenging

consumer backdrop in developed markets

and a year of significant internal change for

our people, Core Reckitt like-for-like net

revenue rose 5.2%, a step-up from 2024, and

we have delivered another year of adjusted

diluted EPS growth.

Strategic execution in practice

Delivering our strategy has seen the

implementation of big changes. We are

focusing resources on our Powerbrands

andstepping back from lower-return assets

such as the Essential Home business.

We completed the divestment of this

business in December and look forward,

asashareholder, to the value we believe

Advent International can unlock from its

strong brands and team.

We are managing Mead Johnson Nutrition

todrive growth and value creation while

wecontinue to assess our long-term strategic

options for this business.

Our sharper focus on Core Reckitt has

strengthened our growth profile in four

priority categories: Self Care, Germ Protection,

Household Care and Intimate Wellness. These

categories have strong, long-term growth

drivers. In 2025 we showed how our brand

strength and winning Playbook can unlock

thispotential.

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For more information

visit reckitt.com

To support this focus, we evolved our

reporting structure from three business

unitsto three Areas with accountability now

consolidated behind three Area Presidents.

We have reduced layers of management

andaccelerated decision making closer

toconsumers and customers.

This simplification is aligned with our Fuel for

Growth programme and our investment into

global shared services and digital capabilities

that are optimising our cost base and driving

efficiency and consistency. We are also

investing in our manufacturing footprint and

supply chain, including the expansion of our

factory in Taicang, China, and our new R&D

Centre of Excellence in Shanghai. These

initiatives are setting the stage for improved

resilience and reduced environmental impact

in the long term.

Embedding digital and data is central to

Reckitt’s transformation. In 2025, we utilised

generative AI tools to drive more efficient

concept generation and content creation.

Thisdrove sharper targeting and improved

campaign effectiveness across several

markets, helping teams make faster,

better-informed decisions and execute

moreconsistently at scale.

2025 performance

Our performance in 2025 was delivered

through a sharper organisational focus on

ourPowerbrands. Our ongoing investments

inbrand equity and science-led innovation

aredriving meaningful consumer benefits,

enhancing premiumisation and supporting

afavourable revenue mix.

Core Reckitt LFL net revenue growth

+5.2%

Adjusted diluted earnings per share growth

+1.1%

Cash returns to shareholders

£2.3bn

Launches such as Durex Intensity, Nurofen

MiniLiquid Capsules and Dettol’s Activ-

Botanyrange alongside continued growth

inplatforms including Lysol Laundry Sanitizer,

drove premiumisation and category creation

across the portfolio.

We delivered strong growth in Emerging

Markets, our largest area by net revenue,

withdouble-digit growth across all

categories. Our area-led execution reinforced

category leadership in priority markets, with

double-digit growth in China and high

single-digit growth inIndia delivered during

the year led us to review the prioritisation of

our sustainability initiatives.

Chief Executive Officer’s Statement continued

Groundbreaking ceremony at our new R&D Centre in Shanghai, China

Winners of the Sir James Reckitt Award with the GEC at Turner House, Slough, UK

1 Adjusted and other non-GAAP measures, definitions

andterms are defined on page 203

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As a result of this growth, our Group financial

performance improved. Adjusted operating

margins increased 40 basis points and we

drove another year of EPS growth (adjusted

diluted EPS grew 1.1%). Our ongoing share

buyback programme and progressive

dividend delivered £2.3 billion in cash returns

to shareholders. In addition to these 2025

cash returns, we paid a c.£1.6 billion special

dividend to shareholders from the excess

capital resulting from the Essential Home

divestment in early 2026.

Our cost savings programme continued

todeliver, supported by organisational

simplification, global shared services, and

early benefits from automation and AI.

Fixedcosts

reduced to 19.4% of net revenue,

creating headroom to reinvest in our brands,

innovation capabilities and supply chain

resilience, driving performance today

andcompounding value over time.

Looking ahead

Our medium-term guidance for Core Reckitt

is to consistently deliver +4% to +5% LFL

netrevenue growth. We aim to achieve

thisthrough superior in-market execution,

adisciplined winning Playbook applied

consistently across markets, and a portfolio

ofinnovative, science-led products that

drivepremiumisation, with meaningful

brandsupport behind the launches that

matter most.

Alongside this, our ambition remains to

deliverlong-term sustainable EPS growth

andvalue creation for our shareholders,

andfor our broader stakeholders.

2025 was a year of significant change for

ourBusiness. I want to thank everyone at

Reckitt for delivering through that change

while continuing to execute our strategy.

Theresilience, expertise and commitment

ofour people have been central to our

momentum this year. To our customers,

partners and the communities we serve;

thank you for your trust and collaboration.

There is more to do, but we have made real

progress and our foundations are stronger.

With Core Reckitt at the centre of our

strategy, a Playbook that scales our

Powerbrands, a reinvestment cycle that

compounds value and a transformation

withconfidence.

Kris Licht

Chief Executive Officer

Chief Executive Officer’s Statement continued

There is more to do, but we

have made real progress

and we have built a

stronger foundation

forgrowth.

Sustainability and responsibility

Our Sustainability Ambitions and community

partnerships help ensure that our Business

isset to endure for long-term success,

whilefuelling growth and mitigating risk.

Ourcommitment to addressing global

challenges remains unwavering, and we

willcontinue to evolve our Sustainability

Ambitions to reflect our Business priorities

and stakeholder expectations.

We are focused on the areas where we can

have the greatest impact: reducing carbon

emissions, designing better packaging,

stewarding water and upholding responsible

social and environmental practices across

ourvalue chain. These priorities strengthen

brand trust, product performance and supply

resilience while supporting long-term growth

opportunities and value creation.

Alongside this, we continue to invest in social

impact programmes that advance health,

hygiene and inclusive growth in communities

facing the greatest need. In 2025, we

consolidated our entrepreneurship initiatives

under a single global platform with the launch

of Reckitt Catalyst, expanding into the United

States and setting a clear ambition to deliver

health and hygiene solutions to five million

people by 2030. Catalyst combines funding,

mentorship and technical expertise to help

locally rooted solutions scale, particularly

those led by founders from underrepresented

backgrounds.

Lysol brand display on a North America retail site visit

1 Adjusted and other non-GAAP measures, definitions

andterms are defined on page 203

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Business Model

FOUNDATION REINVESTMENTEXECUTION PERFORMANCE

We create and build

Powerbrands…

Our distinctive culture, people

and Powerbrands are the bedrock

of our sustained success.

Accountability and a relentless

focus on delivery, coupled with

a sharp Core Reckitt portfolio

and clear value creation principles,

give us a strong base for

everything we do.

using our winning

Playbook for growth…

We execute through our

repeatable model built on

consumer obsession, superior

innovation and executional

excellence. It is how we ensure

consistent and responsible

delivery across all our markets,

advancing our sustainability goals

and driving positive outcomes.

to deliver sustainable

outcomes…

Our firm foundation and focused

execution, together with

simplified operating structures

and improved efficiency, drive

enhanced financial outcomes,

performance and results. This

supports above-category growth,

increases profitability and builds

momentum for sustainable

valuecreation.

and fuel compounding

value creation.

We channel the capital we

generate back into building our

Powerbrands and capabilities,

alongside returning cash to

shareholders. This creates a

virtuous circle of growth, where

performance and reinvestment

continually reinforce each other

and ensure strong foundations.

Our core differentiators How we grow sustainably

People and Culture pages 8-9

Core Reckitt and Powerbrands

pages10-11

Sustainability Performance pages 42-47

Winning Playbook pages 12-13

Supply and Value Chain page 14

Market Execution page 15-16

Delivering Growth page 17

Fuel For Growth pages 18-19

KPIs page 20

Ambition and Shareholder Value page 21

Reinvesting For Growth pages 22-23

How we are evolving into a world-class health and hygiene company

By building on our distinctive foundations

and executing with excellence, we position

our Business for continued performance

and reinvestment to compound long-term,

sustainable growth.

OUR BUSINESS MODEL UNDERPINS LONG-TERM,

COMPOUNDING VALUE CREATION

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Foundation – People and Culture

THE FOUNDATION THAT DRIVES LONG-TERM VALUE

There is a mindset that defines Reckitt people:

driven, determined and relentless in how we

deliver. We do the right thing. Always.

By deepening our distinctive,

values-led culture, we have

enabled our people, who are

theheart of Reckitt, to operate

with clarity, accountability and

arelentless focus on delivery.

Reckitt has a long track record of building

trusted Powerbrands that lead their

categories and deliver sustained value.

Ourpeople and culture provide the solid

foundation to this, bringing purpose, expertise

and agility to everything we do. What

distinguishes Reckitt is not only the strength

of our brands, but the culture that actively

powers their success. Our shared behaviours

and expectations shape how we work every

day, enabling our people to make faster,

better decisions that translate directly into

growth. It is a performance-oriented culture

grounded in accountability; and it is how we

focus and deliver consistently, at pace and

with integrity.

Our distinctive culture continues

tobeacompetitive advantage

Our culture is the practical expression

ofhowwe work and deliver. It continues

tostrengthen and evolve, helping to ensure

that how we work and the part our people

play supports a sharper, more deliberate

execution. This is underpinned by clear and

consistent Leadership Behaviours – Own,

Create, Deliver and Care – that give

colleagues a common global language

thatstrengthens alignment and supports

consistent delivery across markets.

How we lead and act to

fulfil our purpose

Our Purpose

We exist to

PROTECT,

HEAL AND NURTURE

in the pursuit of a cleaner

andhealthier world

Own

Deliver

CreateCare

Do the

right thing.

Always.

Our Compass and

Leadership Behaviours

Panel discussion taking place at Turner House, Slough, UK

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Foundation – People and Culture continued

Let’s Engage

Our new global listening

model strengthens cultural

alignment and shows our

values in action.

The findings from our first annual Let’s

Engage survey demonstrated strong

confidence in the Business and showed

that the day-to-day work experiences

ofcolleagues mirrors our values, including

‘Doing the right thing. Always’. Launched

globally in 2025, Let’s Engage is a step

change in how we listen to colleagues

and respond to their experiences.

The new listening model uses feedback

from targeted surveys, our global survey

and moments that matter to provide

greater understanding of the lived

experience of our teams and will allow

usto focus on turning listening in to

action, in the moments that matter.

84%

global response rate

80%

would recommend Reckitt as a place

towork

83%

agree we act responsibly and

withintegrity

Our people and culture provide

thepurpose, clarity and focus needed

to shape Core Reckitt and our

Powerbrands, ensuring that we invest

our energy and capabilities where we

can create the greatest value and lead

withconfidence >>>

Sustainability is a critical element of our

culture and aligned with everyday actions

toreduce waste, conserve resources and

support our communities. ‘Doing the right

thing. Always’ is deeply embedded and

continues to shape the everyday decisions

that underpin our winning Playbook see

page12. Fairness, safety and respect guide

how colleagues collaborate and how leaders

lead, reinforcing trust and enabling confident

execution even in complex environments.

Building an inclusive workplace where

everyone can achieve their potential

We have been on a journey to build our

understanding and approach to inclusion.

Within Reckitt, we recognise that our people

are a source of competitive advantage. The

fact that every one of us is unique brings in

diversity of perspectives and unlocks creative

solutions. As a global organisation that

engages with a diverse group of customers,

consumers, suppliers and partners, conscious

inclusion is at the heart of everything we do.

As we build and strengthen our Business for the

future, we are also investing in our talent and

have made improvements in how we attract,

onboard and develop our people. This includes

providing learning opportunities, functional

academies and programmes across digital,

data,science and sustainability, supporting

in-year performance and building long-term

capabilities. This is complemented by internal

employee networks that connect colleagues

across regions, helping them share ideas and

participate in initiatives that build communities

of practice at work.

Empowerment and leadership that

enable delivery

Line manager empowerment continues to

bean area of focus, driving accountability and

ownership deeper into the organisation with

aview to further supporting this through

more capability building in 2026. Strengthened

recognition frameworks have been

embedded helping to balance individual

contribution, short-term goals and Group-

wide, longer-term strategic priorities.

Leadership engagement continues to take

place through targeted sessions between

Board members and colleagues across various

markets, with discussions focused on

category growth and sustainability, excellence

in execution, transformation and next-

generation leadership. These play a

meaningful role in strengthening alignment

and helping to make strategic priorities

clearer for the teams involved.

For more information on Reckitt’s socialimpact,

see page 42

Mexico City manufacturing site, Mexico

Laboratory in Bangplee, Thailand

Offices in Hyderabad, India

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Foundation – Core Reckitt and Powerbrands

SHARPENING OUR PORTFOLIO FOR GROWTH

We focus on the brands and

categories where we lead and

have an enduring market

opportunity. This is shaping a

simpler, more focused Business

with strong foundations for long-

term value creation.

The strategic heart of our global Business is

Core Reckitt. We have one of the strongest

portfolios in our industry, curated around

11Powerbrands across four categories where

we have clear competitive positioning, strong

brand equity and long-term structural growth

opportunities. These brands now represent

the vast majority of Group net revenue and

define where we invest, innovate and build

for sustainable growth. This sharper focus

reflects the discipline of our people who

deliver with clear accountability, pace

andownership.

Our Powerbrands are trusted worldwide

At Reckitt, we consider consumer trust to be

our true superpower. For example: in Germ

Protection, Dettol is the #1 trusted brand

across health and personal care categories in

several major markets; and Lysoland Harpic

consistently rank as the #1 considered or #1

recommended brands insurface and

lavatorycare.

This enduring trust underpins the commercial

strength of our portfolio. The Powerbrands at

the heart of Core Reckitt command sector-

leading gross margin structures that have

remained durable for more than a decade,

providing us with the capacity to reinvest

consistently in brand building, innovation

andsupply resilience.

Each of our four core categories offers

long-term structural runways for growth,

fromrising focus on self care and health span,

to growing hygiene needs, increasing use of

dishwashers and significant under-served

demand in intimate wellness.

Our Powerbrands are also where we

concentrate our sustainability efforts, because

their scale and reach enable the greatest

impact. This includes advancing next-

generation formulations and lower-carbon

packaging solutions that help ensure Core

Reckitt remains resilient and fit for the future.

Our portfolio is shaped with intention

The divestment of Essential Home this year

isa significant step in unlocking further value

in our Business. It moves Reckitt towards

asimpler, more effective Company and

sharpens our focus on our high-growth,

high-margin Powerbrands. It also reflects our

value creation principles and our discipline in

concentrating capital and capabilities on the

brands that best meet them. Mead Johnson

Nutrition continues to be managed as part

ofthe Group whilst we review the strategic

options for the Business. These decisions

demonstrate active portfolio management

and clarity about where we prioritise

long-term value creation.

Clarity, accountability and delivery

Our structure embeds accountability for

delivery, with responsibility for in-year

performance owned in our markets, enabling

stronger commercial proximity, faster

decisions and a clearer line of sight from

portfolio priorities to in-market delivery. This

alignment across brand development and

innovation by category, and market execution

by geography, supports the focus and speed

that run throughout our strategy.

Powerbrand portfolio driving

market share gains

Across Core Reckitt the overall strength of

our brand equities and competitiveness is

measured through market share analysis.

In 2025, 51% of our top Category Market

Units (CMUs), weighted by net revenue,

were in share hold or gain positions. We

delivered strong market share performance

across key regions in Emerging Markets and

within the Germ Protection and Intimate

Wellness categories. 55% of our largest

CMUs (excluding seasonal over-the-counter

CMUs) were in share hold or gain.

A strong earnings

model that funds

reinvestment

A long-term

runway for

growth

A sustained

competitive

advantage

Three principles determine which

Powerbrandsbelonginour Business

Our Core Reckitt Powerbrands must deliver against all three

principles, ensuring that ourresources are focused where we

can lead and create value over time.

Brands rooted in science-

led innovation, consumer

trust and category

leadership that can be

defended and extended

over time

Trusted brands with strong

gross margins and scale that

enable continued

investment in brand equity,

innovation and route

tomarket

Brands that serve enduring

human needs in categories

with structural headroom,

not short-term trends

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Our heritage

Reckitt’s Powerbrands have a

lasting legacy of innovation and

trust; a foundation that we

continue to build on every year.

For generations, these brands have been

part of people’s lives, continually evolving

tomeet changing needs. Each breakthrough

we make reflects the strengths that define

Core Reckitt today: science-led innovation,

meaningful consumer relevance and the

ability to solve real problems at scale.

Ourheritage is a source of resilience

anddifferentiation, supporting premium

positioning, trust and long-term

categoryleadership.

Our Powerbrands continue to evolve

withthe same purpose that inspired their

origins. Advances in hygiene and material

science, new platforms in targeted pain

management and digital innovation are

extending their legacy and ensuring their

relevance for new generations. This is how

we are building our Powerbrands for the

future, all grounded in the same ambition

toprotect, heal and nurture in a cleaner,

healthier world.

Foundation – Core Reckitt and Powerbrands continued

Nurofen revolutionised pain relief after

more than 200 failed attempts preceded

Dr Stuart Adams’ breakthrough

Durex has shaped global standards

insexual health since 1929

Harpic pioneered one of theworld’s first

liquid toilet cleaners and continues

itsmission to increase accessto toilets

Finish solved a global consumer

frustration in the 1950s and is now the

world’s number one automatic

dishwashing brand

Vanish continues to preserveclothing

and reduce waste through advances

infabric care

Mucinex introduced 12-hourcough

reliefthat redefined expectations

inrespiratory care

Dettol cut maternal sepsis deaths by half

in the 1930s and continues to be a trusted

symbol of germ protection

Veet (a play on the French word

forquickly) has led hair removal for

morethan a century

With the distinctive Reckitt culture and portfolio in place, we have the clarity and discipline to execute with excellence >>>

Lysol emerged in response todeadly

cholera outbreaks and remains a frontline

defender against emerging health threats

Gaviscon transformed heartburn

treatment with unique alginate

technology that still sets the standard

fordigestive relief

Strepsils created the first

medicatedthroat lozenge

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Execution – Winning Playbook

OUR UNIFIED, REPEATABLE GROWTH MODEL

Our winning Playbook brings

together how we understand

consumers, build our brands,

develop superior products and

ensure excellence in execution.

It is how shared capability, science and a unified

way of working translate into performance

across all our geographies and channels,

enabling faster innovation and more efficient

scaling. Supported by a simpler, more focused

operating model, the Playbook gives teams the

clarity and tools to act decisively, respond to

changing needs and deliver consistently.

The Playbook strengthens how we deliver

across all categories, helping us to turn

genuineconsumer needs into the products

that fulfil them.

Consumer obsession that reveals new

needs and shapes brand relevance

Our consumer proximity shapes how our

brands evolve and ensures they remain trusted,

familiar and meaningful. Insight into unmet

needs, behaviours and usage occasions helps

us sharpen relevance, unlock new demand

spaces and create deeper, more personal

value for consumers.

Durex Intensity: A material

breakthrough shaped directly by unmet

consumer needs

Durex Intensity boasts a significant material

innovation, created in direct response to clear

consumer barriers to condom use: many

people were avoiding condoms because of

sensitivity loss, discomfort or latex allergies.

These insights shaped every stage of

development, resulting in ‘nitrile’, our

breakthrough latex-free alternative with

The Reckitt Playbook

• Deep consumer insights

• Evolving category needs

• Understanding demand

spaces

• Creating and growing

categories

• Global Powerbrands

• Local heroes

• Science led

• Breakthrough propositions

that delight consumers

• Innovation-led growth

• Optimised supply

organisation

• Global success model

• Excellence on shelf and on

screen

CONSUMER

OBSESSED

ICONIC

BRANDS

SUPERIOR

INNOVATION

EXECUTION

EXCELLENCE

Household penetrationCategory creationPremiumisation

enhanced heat transfer and improved

sensitivity; benefits that were validated

through extensive testing, behavioural

research and product trials. The material also

performs to the highest standards of strength

and reliability that define the Durex brand.

By solving real consumer problems, Durex

Intensity strengthens trust, relevance and choice

for millions of people. It demonstrates focus on

consumer obsession in action: insight translated

into meaningful innovation that improves lives.

Our iconic brands lead categories

andcreate new ones

Their global equity and premium positioning

give us the scale to invest consistently and the

inBrazil). By helping people understand the

causes of heartburn through education and

marketing and the role of fast, long-lasting

relief, Gaviscon continues to reinforce the

credibility that has defined thebrand for

generations. This, along with continued

innovation, has supported penetration gains

and protected category leadership,

demonstrating how iconic brands grow

whenthey stay close toconsumers, invest

inrelevance and build onthe scientific

foundations that make themtrusted

household names.

platform to enhance relevance as needs evolve.

Their heritage strengthens recognition and trust,

while clear, codified brand frameworks ensure

they continue to meet enduring human needs

with clarity and confidence. The expertise we

have and the strength of our brands also allows

us to enter into new segments, increasing the

relevancy of our brands for more occasions.

Gaviscon: Sustaining leadership in

digestive health through targeted

education and trusted science

In this reporting year, we have sharpened

Gaviscon’s brand relevance, strengthened

leadership inkey markets (unit share growth

18bps globally) and allowed for activation

innew markets (e.g. growing value +41%

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Execution – Winning Playbook continued

Dettol

Market leadership built through the

full power of the winning Playbook

For more than a decade, Dettol has

delivered exceptional long-term growth in

India, expanding penetration, outpacing

competitors and becoming the market

leader in health despite starting far behind

an entrenched rival.

Dettol’s progress reflects our focus on

consumer obsession at scale: a national

hygiene curriculum developed with

government partners now reaches almost

30 million children a year across nearly one

million schools, helping to build hygiene

habits and brand relevance from an early

age. These better hygiene practices are

directly linked to improved health

outcomes, underscoring the programme’s

wider social impact as well as Dettol’s

continued strength as an iconic brand.

Dettol remains one of India’s most trusted

symbols of germ protection. Continuous

superior innovation has extended the brand

into new plant-based formats and benefits,

delivering leading category expansion

across multiple hygiene segments and

meeting evolving needs with science-

backed solutions.

All of this has been underpinned by

execution excellence: distribution has

expanded from 4.9 to over 6 million stores,

supported by consistent activation and

strong area-led commercial ownership. The

result is a sustained transformation of the

brand’s position, with penetration rising

from 37.7% to nearly 41.1%

over the last

three years and Dettol commanding market

leadership in India across the category.

Our Playbook turns global capability into in-market results. It is how we connect our

sharper portfolio with disciplined execution, enabled by a supply and value chain focused

on supporting growth >>>

Across every category and

Powerbrand, three levers drive

repeatable, sustainable

performance.

Household penetration

Expanding reach across more formats,

price points and channels

See Dettol story to the right

Premiumisation

Strengthening margin and equity through

superior science and upgraded

experiences

See Finish story page 16

Category creation

Unlocking new occasions and need

states that expand markets and

accelerate growth

See Veet story page 31

These levers work together: informed by

insight, enabled by science and delivered

through commercial discipline.

Lysol Laundry Sanitizer: A science-led

breakthrough that created a new

premium hygiene category

Lysol Laundry Sanitizer is one of Reckitt’s most

successful recent innovations, born from a

clear scientific problem: standard 30-degree

washing does not kill bacteria, and washing

machines themselves can harbour germs.

Addressing this challenge drew on open

technology sharing, with Lysol and Dettol

teams collaborating across microbiology,

analytical science, regulatory and formulation

expertise to build a robust, transferable

scientific foundation for laundry sanitisation.

The result was a first-of-its-kind sanitising

solution that kills 99% of bacteria left behind

by detergent and a new premium category

ina mature market: laundry sanitisation. Within

just a few years, the segment has grown to

almost £300 million in retail sales annually,

transforming consumer expectations and

strengthening Lysol’s role as a leader in germ

protection. That same shared scientific

foundation is also supporting the launch

ofadditional laundry sanitiser innovations

within the Dettol brand in emerging markets,

including India and China.

Execution excellence translates global

strategy into in-market results

Disciplined commercial delivery, strong

customer partnership and operational precision

ensure our products are consistently available,

visible and compelling at the moment of

choice. Local accountability and the global

success models of our brands give markets

theagility to respond quickly while maintaining

the value proposition of each brand.

Superior innovation rooted in science

and technology

The Playbook strengthens how world-class

R&D science drives commercial advantage,

enabling us to create products which

performbetter, last longer and meet needs

more precisely. This capability supports

premiumisation, accelerates category creation

and expands the occasions and need states

our brands can serve, strengthening equity

and value over time.

For more information, see Market Execution on

page 15

1 In relation to the bar soap category

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Our strategic supply

chainpriorities

Implementation

Focus on two KPIs: customer

service and operational

equipment efficiency

High potential

Establish the new

organisational structure

and embed the new

operating model

Transformation

Deliver the network

master plan for our future

supply footprint

Digitalisation

Finalise and implement

the digital strategy

Capabilities

Build capabilities in

engineering, manufacturing,

planning and customer service

Execution – Supply and Value Chain

STRENGTHENING THE ENGINE

THAT POWERS EXECUTION

We are investing in a supply

chainbuilt to last, one that creates

value for our brands and our

Business, and ensures that we

areresilient, responsive and

scalable for growth.

A high-performing supply chain is central

tohow we execute, enabling our Playbook

totranslate global capability into reliable,

repeatable in-market performance. Our

strategic supply priorities and value chain

setclear focus areas, enabling supply to

create value for the Business through

strongerend-to-end delivery. We have

significantly increased our investment into

ourmanufacturing sites and facilities, to

ensure that they are fit for the future.

As we continue to grow sustainably in line

with our purpose and ambition, our supply and

value chain will play an increasingly important

role in ensuring that we execute with pace,

precision and consistency.

We are focused on five strategic

priorities to elevate our supply chain

They signal our shift towards a supply chain

that can anticipate needs, invest effectively

and create value, supporting the Business

byimproving customer service, enhancing

efficiency and strengthening operational

performance. These priorities shape the

actions we take today to build the capabilities

we need for tomorrow.

Value

chain

This is how we deliver measurable

value to the business, shaping

positive outcomes across our

end-to-end operations and for

our stakeholders. Aligned to

ourfive strategic priorities, our

value chain illustrates how we

drive benefit and enable

sustainable growth.

01 Product design

We develop superior, science-based

solutions and weuse our Sustainable

Innovation Calculator to design products

that contribute to our sustainability targets.

02 Sourcing

We source raw, packaging and co-pack

materials from around 2,000 suppliers

across 67countries. Around 27,000 indirect

suppliers provide services that support

ourBusiness.

03 Manufacturing

We have 46 production facilities (CR 34,

MJN 6, EH 6), supported by an adequate

number of third-party manufacturing sites.

04 Supply and logistics

We run a global distribution network with

130 active distribution centres around

55countries.

05 Sales and marketing

Globally, our major trading channels span

millions of retailers, from online retailers

tobrick and mortar stores, and leverage a

network of distributors to reach consumers,

especially in Emerging Markets.

06 Consumer use

Our products are used in households

millions of times each day. On this scale,

even small changes in consumer behaviour

can have a big impact.

07 End of life disposal

We aim to design for a circular economy to

help reduce plastic and packaging waste.

For more information see our 2025

SustainabilityReport, available at reckitt.com

Our value chain

Investing in building a supply chain to last enables our Playbook to be implemented

consistently and prepares the ground for disciplined, scalable execution >>>

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Execution – Market Execution

FOCUSED DELIVERY ACROSS GEOGRAPHIES

By putting accountability

anddecision making closer to

consumers and executing with

excellence, we turn our Playbook

into consistent, scalable outcomes.

Across geographies, our market-led operating

model supports local teams to deploy

repeatable Playbooks for penetration growth,

category expansion and market development.

It also ensures that our global capabilities are

used with greater precision to strengthen

execution and build long-term resilience.

Byaligning strategy, capability and in-market

delivery more tightly, our model enables

teams to act with the focus, consistency

anddiscipline required to win in diverse

market conditions.

A simpler organisation built for speed

and ownership

Fewer layers and clearer decision rights

allowteams to move quickly and consistently.

All regions now each own their P&L, giving

them clearer priorities, faster decision making

andgreater focus on execution. Market and

category teams together work seamlessly,

ensuring launches and activations are

relevant, timely and executed with discipline.

Digital and data capability embedded

throughout execution

Digitally enabled platforms now give teams

asingle view from planning to activation.

Advanced analytics, AI-supported planning,

enhanced measurement tools and digital

pricing systems improve forecast accuracy,

sharpen responsiveness and help teams act

quickly, making delivery more consistent,

predictable and adaptable across all markets.

Sustainability built into our operating

model and the way we deliver value

Improvements in formulation, manufacturing

efficiency and packaging continue to

strengthen environmental performance and

deliver better product benefits. Progress

onrecyclability and post-consumer recycled

(PCR) plastic content is being delivered

through disciplined project management and

supplier collaboration, despite market-wide

infrastructure challenges. Supply chain

resilience is being enhanced through

investments in energy and water efficiency

which also improve operational resilience,

reduce cost and support reliable supply

forour Powerbrands.

North America

Sharpening commercial discipline

andcoordinated customer delivery

North America has strengthened execution

bytightening planning cycles, increasing

accountability and improving coordination

across teams. Working to unified commercial

plans we are raising the quality of in-store

shelf resets, innovation launches and

promotions. Stronger links between category,

marketing and supply planning improve

forecast accuracy and availability

acrosscategories.

More consistent in-market delivery is also

being supported by disciplined pricing, mix

management and promotional deployment,

backed by real-time visibility of shelf and

online performance. This data-led approach

speeds up corrective action, sharpens

responses to consumer and category trends

and supports reliable delivery across the

region’s broad retail landscape.

Stronger partnerships

through closer collaboration

Our new operating model has enabled

closer, more effective relationships with

retail customers in the USA by removing

internal layers and strengthening direct

connections between brand, sales and

customer teams. Decisions are now always

taken through a customer and consumer

lens, with online and in-store execution

treated as a single, integrated priority.

Thishas increased customer confidence

and engagement, with leadership more

directly connected to key partners.

Arecent co-developed seasonal campaign

focused on fast delivery across channels,

delivered strong digital performance and

reinforced a shared commitment to

meeting consumer needs.

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Execution – Market Execution continued

Europe

Driving category leadership and

premium mix through execution

In a challenging consumer environment,

Europe has continued to reinforce leadership

by combining science-led superiority with

disciplined in-market activation. Category

andcommercial teams have worked

closelytogether to execute premium

propositions across retail environments,

clearly communicating performance,

sustainability and value in markets where

premiumisation and superiority are critical

tomaintaining leadership.

Our focus on execution has been supported

by responsive local supply networks and

closealignment with retail partners. Digital

tools have enhanced promotional planning,

strengthened the digital shelf and ensured

innovations land with impact. High activation

standards, supported by strong quality and

regulatory frameworks, have also helped

deliver scale.

Intima

Accelerating category relevance

and growth through digital-led

social brand building and commerce

Intima accelerated category

development in China, rolling out its

unique product portfolio, establishing the

brand equity through a social

engagement model, and converting

through a seamless commerce

experience. Influencers have played a

central role in mainstreaming

conversation and building understanding

of intimate hygiene needs, while analytics

have guided content optimisation and

platform selection to maximise reach and

conversion. Awareness, education and

purchase pathways have been fully

integrated across digital storefronts,

enabling frictionless movement from

discovery to checkout. This focused

execution model has reached new

audiences, improved relevance and

contributed to the

rapid expansion of

the intimate

hygiene category.

Market execution excellence is

howwecreate meaningful consumer

connection, strengthen brand equity

and deliver consistent growth and

performance across categories

andgeographies >>>

Finish Ultimate Plus

Delivering premium growth through

science-led execution

Finish Ultimate Plus has shifted the

German dishwashing category towards

superior, premium formats. Consumer

insight showed frustration with pre-rinsing

and inconsistent eco-cycle performance.

We developed a new formulation with

Cycle Sync technology which removes

burnt-on stains in the toughest conditions

and even in old machines and hard water

areas. The result is exceptional cleaning on

low-energy settings with no need for

pre-rinsing. In store, clear superiority

messaging, stronger shelf visibility and an

increase in shelf space from 40 to 70%,

along with tailored packs for discounters

(which account for 35% of retail share),

amplified by micro-influencers and

targeted sampling, have all helped convert

shoppers and reinforce Finish’s leadership.

Emerging Markets

Accelerating penetration and building

categories through scaled execution

Emerging Markets have continued to

demonstrate strong execution across diverse

retail environments. Across our sub-regions

inemerging markets, we have expanded

distribution and reach through a combination

of data-enabled routing, visibility tools and

right pack-price architecture for offline

andonline channels. LATAM, China and India

sustained category growth through deep

over-the-counter regulatory and medical

capabilities, enabling trusted education and

activation in highly regulated categories.

Execution has been reinforced by rapid

deployment of repeatable Playbooks and

market-specific formats, such as single

dosesachets, channels and price points.

Capability programmes for frontline teams

and increased customer proximity have

helped countries act quickly and scale

whatworks. Digital platforms also

supportedprecision activation and

strongerexecution across e-commerce

andsocial commerce channels.

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Performance – Delivering Results

TURNING EXECUTION INTO PERFORMANCE

In this reporting year, our Powerbrands

continued to lead growth, while science-led

innovation delivered premiumisation and mix

benefits, with area-led execution reinforcing

category leadership across many markets.

Operational efficiency also improved, with

early benefits from simplification and cost

discipline supporting incremental brand

equity investment and margin expansion and

strengthening the quality of earnings. Taken

together, this demonstrates that the strategy

is working and providing the foundation for

long-term value creation.

Priorities and risks

Our four strategic delivery priorities,

below, align directly with our principal

risks. Each is supported by clear mitigation

actions described in our Riskreporting,

ensuring delivery is underpinned by

disciplined governance, effective controls

and responsible decision making.

Read more about principal risks on page 49

Durex

Accelerating growth through

innovation across key consumer

benefit spaces.

Durex delivered strong, broad-based

growth, contributing significantly to

Intimate Wellness net revenue which

increased 12.5%

. Growth came from a

balanced contribution of volume uplift as

we recruited new consumers and pricing

benefit resulting from premiumisation.

Emerging Markets were standout

contributors, delivering double-digit

like-for-like net revenue growth, while

Europe returned to positive momentum as

we improved shelf presence and new

propositions performed well. Premium

innovations, including the launch of Durex

Intensity – the first premium non-latex

condom made of revolutionary material –

inkey European markets, alongside further

expansion into added-benefits condoms

inChina, helped expand usage occasions

and drive premiumisation. Digital execution

amplified this progress, with livestreaming

and social commerce in China and rapidly

growing quick commerce in India driving

higher full-price sell-through and more

efficient recruitment.

With Durex currently used in around 1%

ofglobal sex occasions, these results

underline both the brand’s contribution

toCore Reckitt growth and the substantial

runway for future expansion.

Our focused operating model has

translated directly into improved

outcomes, resulting in more

consistent growth, beneficial

category mix and greater

profitability across our portfolio.

With delivery becoming more

consistent, the Business is better

positioned to enhance efficiency,

protect margins and keep step with

future investment needs >>>

Delivering across our four strategic priorities

Portfolio value creation

Concentrating resources behind 11

Powerbrands across four categories where

we have clear competitive positioning has

enabled us to improve growth in the areas

where we lead. Portfolio discipline is how

we will ensure investment remains targeted

and effective. This sharper focus on Core

Reckitt has supported above-category

growth in key categories and protected our

gross margins within a difficult

macroeconomic environment.

Product superiority

Science-led innovation has continued to

deliver consumer advantages, supporting

both price mix and brand leadership.

Premiumisation and category creation have

helped consolidate market share positions,

for example: Finish premium tablets page 16

and dose-control technology; Gaviscon’s 7

Symptoms positioning page 22; and continued

penetration gains in the air sanitiser category

with Lysol page 13. These delivered stronger

share and improved sell-out, while building

brand equity.

Winning in market

Area-led P&L ownership has driven faster,

more accountable execution across our

geographies. North America has delivered

more effective activation and higher service

levels. Europe has maintained premium-led

resilience through consistent activation and

science-led superiority. Emerging Markets

have continued to deliver strong revenue

momentum through scaled distribution gains

and category development. Across regions,

execution discipline has improved product

availability, strengthened fundamentals and

supported share gains in priority segments.

Fixed cost

optimisation

Structural simplification and improved cost

discipline have strengthened operating

margin. Our Fuel for Growth programme is

simplifying how we operate, right sizing our

investments, embedding automation and

shared services, and integrating digital

processes and generative AI. Early benefits

have already come through this year from

organisational simplification and right-sizing

legacy investments. The next two years will

bring benefits which come from global shared

service, automation and generative AI.

1 Adjusted and other non-GAAP measures,

definitions and terms are defined on page 203

2 Based on Reckitt’s estimates

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Performance – Fuel for Growth

DRIVING STRUCTURAL EFFICIENCY

We are creating greater capacity

to reinvest for growth, with

resulting efficiency gains also

strengthening operating margin

over time.

Our multi-year Fuel for Growth programme

ismodernising operations and improving

efficiency across every area of the Business.

By lowering fixed costs

as a share of net

revenue and embedding more consistent

ways of working, we are strengthening the

delivery of earnings and creating greater

capacity to reinvest behind our Powerbrands,

innovation and digital capability, feeding

directly into long-term value creation.

Progress to date has seen fixed costs

significantly reduce

Early delivery is visible across the P&L,

withfixed costs falling from 21.8% of net

revenue in 2023 to 20.9% in 2024 and to 19.4%

in 2025, driven by structural simplification

across functions and markets. The programme

remains on track to reduce fixed costs to

around 19% by the end of 2027, supported

byapproximately £1 billion of one-off

transformation investment across 2024–2027.

The foundations of our new operating model

are now in place. Marketing, supply, finance,

R&D and in-market selling structures are

benefiting from simpler organisation design,

clearer ownership and more focused

accountability. Embedding specialist capability

directly into local markets is strengthening

responsiveness and tightening the link

between strategy and execution.

Marketing consolidation

Strengthening our ability to deliver

data-driven campaigns with greater

consistency, efficiency and scale

Reckitt has taken a major step in

modernising our marketing capability by

consolidating European media planning and

buying into a single focused partnership.

This hassimplified governance and

improved strategic alignment across

markets, ensuring that brand equity

investment works harder and is deployed

with clearer accountability. The result is a

more modern, connected and effective

marketing model that reinforces our

Powerbrands and supports long-term

growth.

Adopting digital tools to

enhance our consumer

proposition

The adoption of digital tools is enhancing our

consumer proposition, leveraging our rich

consumer and scientific data to deliver faster

better concept generation, driving efficiency

and delivering superior products to shelf. Over

the course of 2025 we have codified the

Reckitt marketing model used on our brands,

ensuring the deepexpertise and knowledge

we have is held at the centre enabling us to

maximise our impact across the full lifecycle of

the consumer journey. This is not only going to

help us build our brands fortoday, but with

generative AI coming into the mix, having a

strong foundation across brands and how we

build them enables us to fully leverage the

capability these tools bring.

Generative AI is significantly changing our

ability to be able to tap into the rich consumer

data we hold in a way that will drive our

business. We have built an internal proprietary

Reckitt tool to help us with consumer insights

and consumer concept generation, which has

now been rolled out to 12 markets across our

three areas in 2025. These have been piloted

over the last year across brands, delivering

significant time savings. Concept work that

used to take weeks to generate is now

possible in hours to days using this tool. But the

significant benefit is in the quality of the output,

where we’re able to tap into consumer data

sets with tens of thousands of data points that

the human brain isn’t able to do internally,

connecting that internal data to external,

unstructured data like ratings and reviews.

Itopens up new ways of thinking about the

consumer and finding solutions for their

problems in their home. Our marketing

concepts are stronger as a result as they

resonate and perform better delivering a

70%reduction in time, improving on the 60%

achieved in 2024, and twice the quality

ofoutput when it is used.

1 Adjusted and other non-GAAP measures,

definitions and terms are defined on page 203

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Performance – Fuel for Growth continued

WHAT FUEL FOR GROWTH IS DELIVERING

Simplification

Simplification has been the largest

contributor in the early phase of the

programme, removing unnecessary layers

and duplicated positions by restructuring

business units and establishing a

moreunified go-to-market model.

Product lifecycle and business lifecycle

implementation have driven focus and

accelerated decision-making. These

changes providethe foundation for

faster, moreconsistent execution.

Right-sized investment

Rebalancing how and where capability

isbuilt has ensured investment is aligned

to the markets and categories that

deliver the strongest returns. Functions

such as e-commerce, omnichannel sales,

professional and medical activation

havebeen embedded into the regions,

improving local ownership and relevance.

Category acceleration pods have also

been integrated locally, enabling stronger

prioritisation and accountable execution

in complex markets.

Automation and

shared services

Work is underway to roll out fully

standardised, end-to-end processes

across finance, IT&D, supply and HR. They

are underpinned by shared service hubs

in Warsaw, Mexico City and Hyderabad,

which operate as an extension of the

markets they support. This transition

toanintegrated services model is

improving consistency, speed, visibility

and standardisation. Full benefits will

build as processes are adopted at scale.

Digital and generative AI

These capabilities are now being

deployed across core business processes

and are already embedded into ways of

working in marketing. The same approach

is being applied in R&D, while early pilots

in forecasting and supply chain diagnostics

are demonstrating potential for greater

accuracy. The focus is on reducing cost

and on building speed, precision and

higher-value execution across the

Business. SAP modernisation isalso

progressing, enabling more standardised

global processes.

2025 contribution:

~120bps

2025 contribution:

~25bps

2025 contribution:

0bps

(reflecting phasing, with larger

benefits in later years)

2025 contribution:

~15bps

Progress to

date: c.75%

A more efficient, modern and disciplined operating model strengthens margin today and gives Reckitt greater headroom to invest

inthecapabilities that drive long-term growth, with progress increasingly measurable in the performance of the Business >>>

Progress to

date: c.75%

Progress to

date: c.25%

Progress to

date: c.25%

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Performance – KPIs

HOW WE

MEASURE

Tracking outcomes

andimpacts

We measure performance

through a balanced set of

financial, operational and

sustainability metrics that

reflect the quality of growth

and long-term value

creation from our Business.

Performance is assessed across

theindicators that matter most to

our stakeholders and that directly

support disciplined decision making

and reward. We track organic

momentum, margin progression,

cashreturned to shareholders and

capital effectiveness, alongside clear

sustainability outcomes that support

resilience, brand strength and our

licence to operate. Taken together,

this provides a transparent assessment

of delivery and reinforces confidence

that the operating model is

drivingresults.

Like-for-like (LFL) net revenue

growth

Adjusted operating profit growth

atconstant exchange rates

Cash returned to shareholders

2025

2024

2023

2022

2021

5.0%

This is our primary measure of organic

performance, reflecting the strength of

ourbrands, quality of execution and the

roleof mix in driving sustainable top-line

progression. Strong innovation,

premiumisation and effective market

activation support our ambition to deliver

LFL net revenue growth of 4 to 5% in

CoreReckitt over the medium term.

Performance narrative: Group net

revenue of £14,205 million grew by 5.0% on

aLFL basis in the year, reflecting price/mix

improvements of 4.1% and a higher volumes

of 0.9%. Core Reckitt grew 5.2%, and

MJNgrew 3.8%.

2025

2024

2023

2022

2021

+5.3%

This KPI tracks how effectively we convert

revenue growth into profit growth. We

grow profit ahead of revenue growth

through improved mix, stronger execution

and Fuel for Growth reducing fixed costs

This measure provides direct evidence

ofimproved operating leverage and

higher-quality earnings.

Performance narrative: Adjusted

operating profit growth was higher than

net revenue growth, driven by efficiency

improvements across the Group, with

continued delivery of cost savings

fromFuel for Growth and our planned

marketing investment through the year.

This isour primary measure to monitor

profitability and to provide a comparable

net profit per share attributable to owners.

Performance narrative: Total adjusted

diluted EPS was 352.8 pence in 2025

(2024: 349.0 pense), a rise of +1.1%,

supported by a lower share count from

our ongoing share buyback and a fixed

cost reduction of 6.9%, offset by higher

net interest and tax costs.

2025

2024

2023

2022

2021

£2,282m

The cash returned to shareholders KPI is

our primary measure to track delivery on

our ambition of returning value to our

shareholders.

Performance narrative: Cash returned

to shareholders was £ 2,282 million a

reduction of £427 million due to a lower

level of share buyback in 2025.

Return on capital employed

(ROCE)

14.1%

ROCE tracks how effectively we deploy

capital in the Business. Strong ROCE

reflects disciplined allocation, targeted

investment and a focus on value-accretive

growth across categories and markets.

Performance narrative: ROCE in 2025

was 14.1% (2024: 13.5%), an increase of 60

bps from 2024, due to higher operating

profits at constant FX more than

offsetting a higher taxrate.

12.5%

13.2%

10.1%

3.5%

7.6%

3.5%

+0.9%

+9.2%

-2.6%

£1,546m

£1,249m

£1,246m

1.4%

+8.6%

Adjusted diluted earnings

pershare

2025

2024

2023

2022

2021

352.8p

323.4p

341.7p

288.5p

349.0p

£2,709m

13.5%

Net revenue from more

sustainableproducts

2025

2024

2023

2022

2021

37.9%

Performance narrative: Net revenue

from more sustainable products increased

to 37.9% in 2025 (2024: 34.9%), reflecting

our ongoing focus to sustainability within

product development. Progress on

packaging sustainability and the greater

use of recycled material in plastic

packaging has been a key driver.

Reduction in Greenhouse Gas

(GHG) emissions inouroperations

2025

2024

2023

2022

2021

73%

Performance narrative: Our continued

use of renewable electricity and targeted

investment into more efficient equipment

has resulted in a 73% reduction in Scope 1

and 2 GHG emissions vs 2015, surpassing

our science-based target reduction of

65% by 2030.

29.6%

24.4%

24.9%

67%

66%

34.9%

69%

Net revenue from more sustainable products and reduction in GHG emissions in our

operations are used to assess progress againstour sustainability priorities and to guide

capital allocation and strategic prioritisation.

Our performance generates

financial flexibility and

strategicheadroom to increase

investment in brand equity,

innovation, digital capability

andtalent, underpinning

sustained long-term value and

the reinvestment cycle at the

heart of our model >>>

1 Adjusted and other non-GAAP measures, definitions and terms are defined on page203

2 GHG emission reduction performance figures prior to 2025 are as previously disclosed

inour2024 Annual Report and do not include subsequent updates to emission factors

2025

2024

2023

2022

2021

Reckitt Annual Report and Accounts 2025

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Reinvestment – Ambition and Shareholder Value

Reckitt’s ambition is to be a world-

class consumer health and hygiene

company, delivering strong,

sustainable, long-term value.

Our ambition is underpinned by a model

thatbrings together targeted investment,

operating leverage and strong cash

generation. Sustained earnings growth and

robust free cash flow create both resilience

and capacity, enabling us to strengthen the

Business for the future while returning capital

to shareholders. The result is a more efficient,

better capitalised Company that consistently

outperforms its categories and earns the

confidence of investors and partners. This

isthe virtuous circle of growth that turns

focused delivery into compounding value.

Creating shareholder value through

disciplined capital allocation

Our capital allocation priorities balance

investment for growth with consistent

returns,ensuring that improved performance

translates directly into long-term shareholder

value. This approach is grounded in disciplined

decision making, strong cash generation and a

focus on investing where Reckitt can lead and

create enduring value.

GROWING EARNINGS YEAR-ON-YEAR

Maintaining financial flexibility

A strong balance sheet and credit profile

support ongoing investment in innovation,

capability and resilience. Financial flexibility

ensures the Business can respond to

opportunities and challenges across

varying market conditions.

Managing the portfolio for

value creation

We concentrate capital where we can

leadand generate attractive returns.

Exiting non-core assets strengthens

earnings quality, improves resilience

andensures that investment remains

focused and effective.

Returning cash to

shareholders

We maintain a progressive

dividend policy and

continue to execute

sharebuybacks,

reflectingconfidence

inperformance. We also

return excess capital to

shareholders, including

through a special dividend

following the divestment

of Essential Home.

Driving strong free

cash flow conversion

A resilient cash-

generation model

provides the capacity

toreinvest while

continuing to return

valueto shareholders.

Strong free cash flow

conversion ensures

operational flexibility

andreinforces the

financial foundations

ofthe Business.

Investing in organic

growth

We prioritise reinvestment

in the Powerbrands and

categories with the

strongest long-term

potential. Investment

focuses on innovation,

science, digital capability

and deeper consumer

understanding,

strengthening brand

equity and supporting

sustained category

leadership.

Creating value

for shareholders

A disciplined earnings model, built on focus, efficiency and reinvestment, is how we

deliver sustained value for shareholders and long-term strength for the Business >>>

Efficiency-led margin

Operational efficiency delivered through

our Fuel for Growth (FFG) programme

creates capacity for incremental

investment andoperating margin

enhancement, while strengthening our

overall financialposition.

For more information on FFG, see page 19

Strengthening claim

credibility to improve

SelfCare performance

inLATAM

A new regional medical structure now

enables faster, higher-quality claims

development, with clearer substantiation and

more consistent scientific communication

across markets. Investment in these

foundations has sharpened brand

propositions, strengthened medical trust

and improved engagement with healthcare

professionals. With more robust claim

architectures and stronger fundamentals in

place, Self Care brands are now competing

more effectively and building a more

resilient platform for sustained growth.

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Reinvestment – Reinvesting for Growth

FUELLING THE NEXT CYCLE OF VALUE

We reinvest the capital generated

through disciplined performance

to strengthen equity in our brands,

accelerate innovation and build

the capabilities that support

long-term growth.

Our reinvestment strategy is balanced and

deliberate. It focuses on the areas where

Reckitt can lead: supporting and building

Powerbrands through increased marketing

andbrand equity investment, scaling science

leadership that differentiates, modernising ways

of working, investing in our distinctive people

and driving responsible, sustainable growth.

Savings created through structural efficiency

and operational discipline are channelled into

the long-term drivers of success, ensuring

thateach cycle of performance becomes

thefoundation for the next.

Powerbrands and innovation that

underpin category leadership

Sustained reinvestment continues to support

science-led, insight-driven R&D across our

brands, resulting in a scalable technology

pipeline and advancing the superior innovation

pillar of our Playbook. Platform launches are

developed, marketed and expanded over

multiple years, ensuring innovation contributes

to durable brand equity growth. Ongoing

investment in scientific and medical expertise

across all categories reinforces trusted

superiority and maintains our category

leadership. This is supported through our

brandequity investment and marketing,

optimising how we target and engage

consumers. This approach ensures that our

Powerbrands remain relevant and grounded

inrobust scientific and consumer insight.

Digital capability that increases speed,

precision and performance

Digital and data technologies continue

toenhance how teams plan, execute and

optimise performance. Upgraded analytics

platforms, stronger data integration and

targeted use of AI have improved forecasting,

activation and measurement across markets.

These tools are making decisions faster and

more precise, supporting more consistent

execution and helping teams operate with

greater clarity, confidence and efficiency.

People and culture that strengthen

ouroperating foundation

Capability building, leadership development

and more-connected, technology-enabled

ways of working have strengthened our

people’s ability to execute with pace and

accountability. Increased functional learning,

clearer decision rights and improved

collaboration tools are also supporting faster

problem solving and more-joined-up delivery.

These actions have reinforced a culture

aligned to long-term performance and

disciplined execution.

Sustainability and responsibility that

build resilience and efficiency

Reinvestment in sustainable product design,

packaging and operations continue to support

both environmental progress and operational

discipline. Improvements in recyclability,

recycled content and formulation efficiency

are reducing impact while strengthening

costeffectiveness. Responsible sourcing

partnerships and water- and energy-

efficiency projects across key factories

havefurther improved resilience, linking

sustainability investment directly to supply

continuity and long-term value creation.

Gaviscon

Focusing on two enablers – regulatory

preparation and strengthened

medical capability – has transformed

Gaviscon’s trajectory in LATAM

In Brazil, Mexico and Colombia, we have

invested in securing licences and

compliance pathways early, while building a

consistent medical and consumer education

platform based on the seven clinically

recognised symptoms of reflux. This

approach has equipped an expanded

network of healthcare professionals and

better-informed consumers with a clearer

understanding of the condition and

established a unified framework that

cantravel across markets.

The impact has been most evident in Brazil,

where the brand, marketed as LuftaGastro,

has almost doubled its market share in

three years. This growth has helped to

expand the gross margin base in the region,

creating the headroom to further reinvest

inpromotion and market development.

That reinvestment is now enabling Gaviscon

to scale efficiently across Mexico, Peru,

Ecuador and Chile. With regulatory

groundwork completed and a proven

medical education model already in place,

these markets can adopt the framework

quickly and consistently, supporting faster

activation and stronger category growth.

The Gaviscon experience shows how

targeted capability building not only

accelerates performance in priority markets,

but also delivers the margin momentum

needed to extend that success across the

wider region.

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Reinvestment – Reinvesting for Growth continued

water.org

Enabling lasting access to safe

waterand sanitation through

locallydriven solutions

Our partnership with water.org focuses on

expanding access to safe water, sanitation

and hygiene (WASH), supporting approaches

that help households secure reliable and

affordable water and sanitation services.

To date, the partnership has enabled lasting

access to WASH for more than 2.7 million

people across India, Indonesia, Kenya

andNigeria, contributing to improved

healthoutcomes and greater community

resilience. Building on this progress, we

have committed to reaching 5 million

people with safe access to water and

sanitation by 2030, directly supporting our

core purpose to protect, heal and nurture

inthe pursuit of a cleaner, healthier world.

Find out more in our Social Impact Report

available at reckitt.com

Our framework for sustained value creation

Combining a strong earnings model and a commitment

toreturningcash to shareholders.

4% TO 5%

NET REVENUE

GROWTH

We target sustainable top-line growth

of between 4% and 5% for Core Reckitt

over the medium-term

SUSTAINABLE

EPS GROWTH

We will look to achieve this alongside

our ambition to deliver long-term,

sustainable EPS growth and value

creation for shareholders

RETURNING CASH TO SHAREHOLDERS

Every reinvestment decision reinforces the foundations of Reckitt: our brands,

ourpeople, our capability. By directing gains from performance and efficiency

intolong-term growth drivers, we ensure that today’s delivery builds the platform

for tomorrow. It is how focused reinvestment translates into durable,

compoundingvalue >>>

PROGRESSIVE

DIVIDEND POLICY

5% increase in 2025

ONGOING SHARE

BUYBACK PROGRAMME

£0.9 billion returned to

shareholders in 2025

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TBC

SELF CARE

EMPOWERING EVERYDAY HEALTH

Category leadership across

Mucinex, Nurofen, Gaviscon

and Strepsils has been

supported by science-led

innovation, deep consumer

education and a clear focus

on unmet pain points.

Our extensive Self Care portfolio supports

millions of people to take charge of their

health at home, reducing pressure on

healthcare systems while improving treatment

confidence and outcomes. Driven by four

global Powerbrands and an increased focus

on targeting new markets and distribution

channels, the category continued to build

scale in this foundational year for expansion

into new geographies, usage occasions and

adjacent health segments.

Building new demand to drive growth

Operating across a global market worth

around £100 billion, this ‘category of

categories’ continues to outperform the

widerconsumer health market. Leading share

gains came from Brazil and China, in addition

to key European and ASEAN markets, where

growth was led by increased demand for

gastrointestinal (GI) solutions, supported by

consumer education and growing recognition

of everyday digestive needs.

We continue to successfully build new

demandacross our non-seasonal portfolio

withmarket share and penetration gains across

VMS (vitamins, minerals and supplements)

andupper GI categories across North America,

Emerging Markets and key European markets.

Nurofen is Europe’s number one brand in

painrelief and has delivered 6.9% NR CAGR

2019-2025

, based on continuing operations at

constant FX and supported by ongoing market

expansion and strong consumer trade-up.

In2025 we launched new mini liquid capsules

thus growing our premium speed range,

andexpanded the geographical footprint

ofNuromol, a UK proven success model,

intothree key European markets.

Through whitespace expansion across

thecategories, we strengthened our global

footprint and added scale across new and

adjacent health categories.

• Gaviscon Double Action entered Brazil

andseveral other new markets, reinforcing

its leadership in reflux relief

1 Adjusted and other non-GAAP measures,

definitions and terms are defined on page 203

32%

of Core Reckitt

net revenue

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We are proving that when

science and insight lead, we

can make real breakthroughs

and help people take control

oftheir health.

Self Care continued

• Gavidigest became our first move into

lower GI, rolled out in key European markets;

a superior product providing long-lasting

relief from IBS and recurring gut symptoms

by treating the root cause

• Strepsils expanded beyond sore throat into

cough for the first time and demonstrated

consistent 10% long-term growth

The VMS portfolio delivered strong double-

digit growth in the US (+12%) and China

(+64%), where Move Free is the number one

joint-health brand and MegaRed is now the

number one CoQ10 brand on entertainment-

focused e-commerce channels. Growth was

driven by digital-first marketing, consumer

closeness via livestreaming and an

acceleration of specific innovations

responding to Chinese consumer needs,

supporting strong year-round demand.

A repeatable, science-led, scalable

innovation model

Each new Self Care launch is built around a clear

unmet need, superior scientific principles and

strong brand execution. In a category that is hard

to disrupt, this enables meaningful breakthroughs

that improve everyday health outcomes.

Mucinex continued to lead respiratory

innovation in the USA where consumer insight

shaped two significant launches:

Strepsils

Reducing unnecessary antibiotic

use while expanding into a larger

respiratory category

Launched in Australia, New Zealand and

Poland, Strepsils Sore Throat and Cough

positions the brand across a much larger

symptomatic category with higher incidence

than sore throat alone. The expansion

reflects our commitment to science-backed

formulations, including use of established,

proven herbal actives. Early performance in

ANZ has been strong, with rapid share gains

and engagement ahead of forecast.

The move also builds on our longstanding

work with healthcare professionals to

reduce unnecessary antibiotic prescriptions.

Although around nine in ten sore throats are

viral, antibiotics are still routinely given.

Strepsils’ education programmes support

clinicians to recommend medicated sore

throat solutions as the right treatment for

the right occasion, helping people manage

symptoms appropriately at home.

Nurofen Mini Liquid Capsules

Removing a major barrier to pain relief

and unlocking new premium growth

One in three people struggle to swallow

standard capsules or tablets and one in six

avoid medication altogether because of

this, limiting effective self care and

reducing adherence in everyday pain

management. Nurofen Mini Liquid Capsules

address this directly: a significantly smaller

capsule with the same fast absorption

profile as the larger product, achieved

through a reduced fill composition that

maintains efficacy while improving

swallowability.

Mini Liquid Capsules launched in Australia in

February 2025 and are now scaling across

Europe, with early positive performance

indicators and attracting both new users

and existing consumers trading up to a

superior experience.

• Mucinex Kickstart, developed in response

toevidence that many sufferers self-treat

immediately after waking when congestion

peaks. The formulation delivers faster relief

at that key moment, as reported by 72% of

users, and has generated around £40 million

of category value

• The first-ever four-hour medicated cough

gummy, designed for children. The format

helps improve dosing compliance by

masking flavour via a chewable, pre-

measured dose. Results show a 74%

repurchase intent by parents

In Upper GI, a new and disruptive chewing

gum format was launched by Gaviscon in

Australia. Combining a superior sensory

experience with proven efficacy, this

productdelivered over 1% incremental brand

penetration, driven primarily by increased

uptake among mild and younger sufferers.

Biofreeze advanced topical pain relief through

the UltraFlex Patch, strengthening the brand’s

role in one of the fastest-growing pain-relief

segments and creating a new premium

sub-segment within topical analgesics.

Thepatch combines superior flexibility and

adhesion with maximum-strength lidocaine

for long-lasting pain relief with convenience.

Turning evidence into advantage

By investing in clinical partnerships, real-world

studies and health-economic modelling, we

can identify unmet needs early, build scientific

foundations for new solutions and strengthen

confidence in self-treatment as a safe,

effective first choice.

New modelling with the University of York,

forexample, showed that a 5% increase in

appropriate self care with over-the-counter

ibuprofen for conditions like migraine, period

pain and cold and flu could save the NHS

£11.85 million a year and avoid around 400,000

appointments, demonstrating how informed

choices relieve pressure on health systems.

Alongside this, new clinical insights into the

lifelong impact of poorly managed childhood

pain and the persistent gender pain gap

underline where better guidance and early

intervention can improve outcomes and

strengthen confidence in self-treatment as

asafe, effective first step. Studies like these

reinforce Reckitt’s leadership in advocating

for self care solutions across brands such

asNurofen and Biofreeze.

Looking ahead

Self Care enters the new reporting

yearwithabroader footprint, a stronger

innovationpipeline and deeper clinical

andconsumer insight. The focus remains

onexpanding access to safe, effective

solutionsand strengthening the global role

ofself care through science, education and

responsible practice.

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GERM

PROTECTION

CREATING NEW USAGE AND

CATEGORY OPPORTUNITIES

Dettol, Lysol and Harpic remain

at the forefront of modern

hygiene, grounded in education

and trusted science.

Building on the heritage of our three

Powerbrands, we have achieved another

strong year supported by focused execution

and rising demand for effective, trusted

products. With a presence in one in four

households globally, we continue to expand

relevance through premiumisation, category

creation and new usage occasions, backed

byscience-led product development.

Extending our market leadership

In 2025, we delivered robust and balanced

performance, with 8.4% net revenue growth.

China and India remained the most significant

contributors, supported by innovation-led

growth in the USA and stable delivery in

Europe. ASEAN, Middle East and LATAM also

collectively achieved double-digit growth.

Strong execution in our core markets has

created a solid platform for extending into

new benefit spaces and use occasions,

bringing our Powerbrands into more

households and driving more frequent

engagement across geographies. This has

translated into:

• Dettol’s expanded footprint in China with

propositions designed for: families seeking

safe, everyday protection; food contact

surfaces; and new families such as pet

owners

• Lysol’s strengthened presence in air and

laundry

• Harpic’s continued expansion into total

bathroom hygiene

32%

of Core Reckitt

net revenue

Germ Protection continued

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Dettol Activ-Botany

Creating a £60 million new market

space in plant-based antiseptics

Our 100% plant-derived antiseptic liquid

launched in China this year and is expected

to deliver around £60 million in its first year.

It brings natural germ protection into the

mainstream by using science to simplify

ingredients without compromising Dettol’s

efficacy and safety standards.

Early momentum reflects rising demand in

China for plant-based hygiene options and

clearer ingredient profiles, alongside a

simplified formula that is safe for use

around children and suitable for more areas

of the home, including baby and pet

spaces. By creating a new space adjacent

to core antiseptics, we are broadening

Dettol’s role in Chinese households and

demonstrating how category-creating

innovation can unlock incremental demand

while strengthening the equity of Reckitt’s

trusted hygiene brands.

Innovation that creates new habits and

accelerates category expansion

Innovation remained a key driver of progress

this year, underpinned by our longstanding

leadership in germ science. In the USA, Lysol

Air Sanitizer was the first EPA-approved

solution to kill airborne germs, supported by

anew testing method developed by Reckitt

scientists that is now the industry standard.

Lysol Laundry Sanitizer also strengthened

itsposition as a category created by Reckitt

and has become a £300 million retail

business,establishing a new consumer

habitin laundry hygiene.

In China, Dettol continued to expand into

plant-based formats meeting growing

demand for simpler, transparent ingredients.

Dettol Activ-Botany Antiseptic Liquid, a

completely plant-derived antiseptic, delivered

strong traction strengthening trust in the

brand and supporting the shift towards more

premium products.

Innovation has been fundamental to Dettol’s

recent growth in China, underscoring the

scale of demand created by new market

spaces. Reckitt’s new Global R&D Science &

Innovation Centre in Shanghai will deepen

local innovation capability even further and

enable breakthrough hygiene innovations to

scale globally.

Harpic continued to advance in India and

emerging markets with superior performance

in hard-to-reach areas and solutions for

broader bathroom hygiene needs. New

formats, including rim blocks, bathroom sprays

and drain cleaners, strengthened its position

as a total bathroom hygiene brand, and

innovations are now being replicated across

South Asia, Africa, MENARP and LATAM.

Scaling adoption through education and

digital engagement

Alongside product innovation, scaling hygiene

leadership depends on driving widespread

adoption of healthy habits. In Pakistan, we

have educated 1.3 million school children on

the importance of hand washing to prevent

aconstant cycle of sickness, while in India,

ourgovernment-endorsed Dettol hygiene

curriculum has shown a 15% reduction in

preventable illness and 9% reduction in

absenteeism. This continues to translate into

sustained brand growth, with Dettol now

reaching one in two households in India.

In China and North America, adoption

ofnewer hygiene categories has been

accelerated by digital engagement.

Integrated campaigns connecting science,

education and retail have helped consumers

understand the benefits of new propositions

and convert interest into purchase across

channels. This has resulted in sustained

growth in China and Lysol reaching one

intwohouseholds in the United States.

Growing responsibly through safer,

simpler and more sustainable choices

We have continued to improve product

profiles through plant-based formulations,

simplified ingredient lists and recyclable

packaging. These innovations support

saferhousehold use while meeting rising

expectations for more sustainable products.

They also contribute to premium trade-up

across markets as consumers increasingly

choose products aligned with their values.

Looking ahead

With trusted brands, strong momentum in

core markets and rising demand for modern

hygiene, Germ Protection is well placed for

continued category expansion.

Our products reach one in

four households worldwide

and continue to grow

through new benefit

avenues and new market

spaces shaped by science

and consumer need.

Harpic

Driving specialist toilet hygiene

Harpic has delivered sustained growth in

India through consumer education,

increased penetration and expansion into

adjacent bathroom formats. The brand

has achieved a five-year CAGR of over

7% and now reaches more than 100

million Indian households.

Growth has been supported by

continuous product improvement and

communication excellence, with the

‘Doorstep Challenge’ campaign providing

a credible demonstration of product

performance. Consistent media and

brand investment, alongside expanded

distribution, has supported wider

household adoption. Building on this

scale, Harpic has expanded into total

bathroom hygiene, increasing

participation and usage occasions.

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Reckitt Annual Report and Accounts 2025

TBC

HOUSEHOLD

CARE

STRENGTHENING

EVERYDAY CLEANING

Finish and Vanish remain at

the forefront of household

cleaning, grounded in

superior science and trusted

performance that meet

evolving consumer

expectations.

In a year of refocused execution, Household

Care reinforced foundations in Europe and

continued mid-single-digit growth across

Emerging Markets. The category builds

relevance through superior results,

premiumisation and behaviour change,

supported by significant potential to reach

more households globally in both auto

dishwashing and stain removal categories.

With innovation closely aligned to the real

pain points of everyday washing, Reckitt

isshaping the future of cleaning through

solutions that save people time, provide

better results and simplify their daily routines.

Unlocking global growth opportunities

across dishwashing and stain removal

2025 marked a reset of execution in Europe as

we moved from structural transformation to

consistent delivery based on clear priorities.

The category focused on restoring excellence

in core markets, enabling Finish and Vanish to

maintain leadership positions despite softer

overall market conditions. Stronger in-market

execution and a sharper focus ensured our

Powerbrands remained competitive across

priority geographies while reinforcing

premium positioning.

Emerging markets delivered broad-based,

mid-single-digit growth as more households

invested in dishwashers and introduced stain

removal into weekly laundry routines. But this

represents only a fraction of the potential, as

these product areas remain at a very early

stage of development. Only 14% of

households globally own a dishwasher with

awareness remaining low in some markets.

InIndia, just one in four consumers know

dishwashers exist, and in 2024, Finish sold

more product to 27 million Australians than

to4.8 billion people across Asia. Even in

developed economies, penetration varies

sharply, from 90% in Turkey to 50% in Poland,

45% in the UK and 20% in Romania.

21%

of Core Reckitt

net revenue

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Household Care delivered

mid-single-digit growth

across most Emerging

Markets asdishwasher and

stain remover usage

continuedto rise.

Household Care continued

Finish

Driving double-digit growth ahead of

the market in emerging regions

We continued to build the dishwashing

category in Emerging Markets by working

with appliance manufacturers and retailers

to help more households understand,

consider and ultimately start using

dishwashers. A joint campaign in Vietnam

showed consumers that dishwashers paired

with Finish deliver cleaner and more

hygienic results than handwashing. In Saudi

Arabia, campaigns positioned the

dishwasher as an enabler of convenience

for modern living, particularly for working

households.

This ground-up new market space creation

model delivered strong double-digit

growth for Finish across Emerging Markets,

materially ahead of category averages, and

established a scalable model for long-term

expansion across multiple regions.

Sustainable cleaning

Reducing our impact through

behaviour change and packaging

innovation

Our ‘Skip the Rinse’ campaign has

encouraged households to eliminate

pre-rinsing, helping reduce water use, time

and energy while improving results with

Finish’s next-generation formula. Meanwhile,

‘Vanish at 20 degrees’ has promoted

effective stain removal in low temperature

and quick-wash cycles, helping households

cut energy use and lower the environmental

impact of everyday laundry.

Finish also piloted paper-based

packaging that cuts plastic use by 70%,

while Vanish achieved 100% recyclable

packaging and increased post-consumer

recycled content across key product

lines. These initiatives are helping

households adopt more efficient and

lower-impact cleaning routines without

compromising performance.

Vanish also operates in a category with

substantial growth potential. Only one in five

households globally use a stain remover and

even among users, stain removal is applied in

only one in five laundry loads. Together, these

signs of uneven penetration and low usage

point to significant headroom and a clear

growth opportunity for Reckitt.

Solving real household problems through

superior science and premium solutions

Household Care is a problem-and-solution

category with performance judged entirely

onvisible results: either the stain is or is not

removed. Therefore, solving consumer pain

points - through superior science, improved

chemistry and easier routines – necessarily

shapes our entire portfolio. It is how we keep

our Powerbrands ahead and the category

growing. For example, in dishwashing:

• 41% of consumers still complain about

residues, streaks or spots on glassware

andplastics

• 40% report wet dishes at the end of the cycle

• 60% still pre-rinse plates before loading

To address these issues, Finish launched its

next-generation tablet formula across Europe

and Australia/New Zealand, delivering superior

cleaning, reduced streaking and better drying

without the need to pre-rinse. The upgraded

formula reduces carbon footprint by around

20% compared with key competitors through

optimised chemistry. We also reinforced

partnerships with leading appliance

manufacturers, including Bosch and Electrolux,

strengthening Finish’s position as the number

one recommended dishwasher brand

worldwide.

Vanish also delivered strong progress,

throughinnovation aligned with modern

washing habits. Quick wash cycles are now

the second most used setting across Europe

and LATAM, with active washing times as

short asfour to seven minutes. The new

formulation removes stains effectively in

these short cyclesand eliminates the need

topre-treat, answering a clear consumer

need and strengthening our premium

positioning as households move to faster,

lower-energy washing.

Across the wider portfolio, premium tiers

havebecome an increasingly important

driverof value growth. Pricing tiers range

from entry level to the most advanced

formats (index 100 to 160), reflecting

consumer-rated superiority. Even with this

premium ladder in place, the average price

per dose remains up to 20% below key

competitors, showing that our offer still

delivers strong value and that the premium

journey is far from complete.

Looking ahead

With strengthened execution in Europe and

North America, sustained mid-single-digit

growth across emerging markets and

momentum inscience-led innovation,

Household Care enters 2026 with clear direction

and a strong platform for continued delivery.

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Reckitt Annual Report and Accounts 2025

INTIMATE

WELLNESS

UNLOCKING CONFIDENCE

AND CONNECTION

Intimate Wellness continues to grow by

expanding the reach of our Powerbrands

andcreating new opportunities to serve more

consumers. In 2025, we surpassed £1.5 billion

in net revenue, with strong, balanced growth

across developed and emerging markets.

Used in far fewer occasions than our products

can ultimately support, there is a long runway

for growth with clear opportunities to build

momentum through both established and

emerging brands, and a focus on developing

the Powerbrands of the future.

Extending our leadership through a

strong, balanced approach

Another year of broad-based performance

was driven by increased usage,

premiumisation and strong recruitment

ofnew consumers. The growth achieved

reflects a rare combination in this category:

increasing both volume and price/mix in

whatis typically a flat market. This was led by

double-digit growth across China, Africa and

the Middle East, supported by Europe

returning to positive territory through strong

in-store executional discipline and continued

recovery in North America after temporary

supply constraints.

Powerbrands driving market share and

new opportunities for growth

Durex remains the world’s number one

condom brand, yet it is only present in around

1% of global sex occasions. This highlights a

significant opportunity to expand relevance

and drive more frequent usage. Growth

continues to be supported by deep consumer

understanding and disruptive communication

that makes conversations and purchase feel

more open and acceptable.

Lubes are a clear example: despite our unique

consumer insight that they can enhance

almost any sex occasion, misconceptions

continue to limit their use. Through more

playfully provocative communication we are

helping to normalise the category, address

Rooted in leading science, deep

consumer insight and trust, Durex,

Veet and Intima go beyond health and

wellbeing to unlock happiness.

15%

of Core Reckitt

net revenue

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Intimate Wellness continued

Durex Intensity

Driving rapid premium value

growththrough breakthrough

materialinnovation

Durex Intensity has delivered strong

performance since launching in Europe early

this year, to become one of the best-selling

products in the portfolio. Its impact

goesbeyond early sales: Intensity directly

addresses the main reason people stop or

lapse in condom use - reduced sensation -

and is now proven to bring consumers

intothe category, driving incremental

revenue and strengthening Durex’s

premium position.

Intensity is the first male condom made

from nitrile, a material that enables body

heat transfer and enhances sensation

without compromising protection. The

breakthrough meets a longstanding

consumer need for greater closeness and

connection, translating deep insight and

scientific investment into a step-change

inexperience. Early results indicate

broadappeal, reinforcing brand equity

while creating a new platform for

futureinnovation.

those hesitations and open up opportunities

to increase Durex brand presence across

more occasions.

Intima continues to build momentum as a future

Powerbrand with rapid growth in China, scaling

from £11 million to £44 million in 2024 and

£98million in this reporting year. Digital-led

education and activation have been central

tothis success, and the model is now being

used as a blueprint for expansion into Asia

andother markets.

KY refocused on its core equity and portfolio

strengths as the basis for driving renewed

growth. Meanwhile, Veet returned to strong

growth in 2025, driven by science-backed

precision and the breadth of our portfolio,

which includes new formats and formulations.

The Powerbrand is now chosen in 12% of

depilatory occasions, highlighting, like Durex,

clear opportunity for expansion.

Innovation rooted in science, insight and

unmet needs

Science-led innovation continues to

attractnew consumers and drive new usage

occasions across Intimate Wellness. Our

consumer obsession ensures we stay close

topeople’s real behaviours and unmet needs,

enabling us to design solutions that resonate

globally and can be tailored effectively across

different geographies.

In China, continued innovation leadership

includes the ultra-thin Durex 001, Fetherlite

Hyaluronic Acid water-based lube condom

and the performance-enhancing benzocaine

condom, each appealing to new consumer

groups and driving incremental revenue.

Thispipeline is now being scaled in other

emerging markets, with India demonstrating

similar rapid growth.

Durex is already the world’s

number one condom brand.

With usage estimated at

around 1% of global sex

occasions, the potential

forgrowth is substantial.

Veet Bikini

Unlocking new growth through new

occasions

The Veet Bikini depilatory cream delivered

a step-change in Veet’s ability to capture

unmet consumer needs, reinforcing brand

leadership and driving category growth in

China in 2025. By opening up new usage

occasions, the launch strengthened Veet’s

position in a growing depilatory market

while supporting continued growth of

thecore portfolio.

Veet Bikini contributed around 80% of the

brand’s growth, while the base business

also continued to grow, underlining the

strength of Veet’s overall market position

and historical share.

The launch was supported by a digital-led

execution across livestreaming, social

commerce and creator partnerships, driving

awareness and trial through channels

aligned to evolving consumer behaviours.

Digital-led execution shaping

categorydevelopment

2025 saw rapidly accelerating digital-first

execution across Intimate Wellness. In India,

expansion of online-to-offline retail models

extended brand visibility and reach. In China,

livestreaming and social commerce delivered

exceptional momentum, enabling us to

engage on sensitive topics such as sex in

even the more conservative markets. In

particular, influencer-led education and

intimate hygiene conversations on social

platforms helped establish Intima’s early

leadership and provided a repeatable

modelfor other markets.

Looking ahead

In a year when our portfolio maintained

market-leading positions and gained share in

several highly competitive spaces, including

across all segments in China, the breadth

ofgrowth across brands and geographies

hasreinforced confidence in the category’s

future outlook and the strength of our

strategic direction.

Mead Johnson Nutrition (MJN) provides infant

and paediatric nutrition backed by decades

ofclinical research and is trusted by families

and healthcare professionals around the world.

In 2025, the Business focused on restoring

operational resilience, strengthening supply

and service levels and continuing to deliver

high-quality products to support healthy

development during early life. The year also

marked the Company’s 120th anniversary,

providing an important opportunity to

recognise our heritage and longstanding

contribution to infant health.

Strengthening operational resilience

and regional execution

The impact of the July 2024 tornado continued

into early 2025, with recovery progressing

steadily through the first half of the year and

accelerating as operational improvements and

increased capital investment strengthened

supply resilience. By the second half, supply

and service levels stabilised to their highest

point since 2022, providing a solid base for

sustained performance across the global

footprint:

• North America strengthened its supply

position and returned to market share

growth, regaining leadership in the

category

• ASEAN led the growth for MJN International

through a strong focus on the fundamentals

• LATAM delivered solid performance, led

bystrong results in Mexico and improved

availability across key markets

• Europe saw the return of Nutramigen,

ourspecialist formula for infants with cow’s

milk allergy, to shelves, following prolonged

supply shortages

Clinically proven, precision nutrition

The Business continued to innovate shaped by

our precision nutrition approach, which draws

on insights into human milk composition,

paediatric development needs and clinically

MJN reached its highest

service levels in more

thantwo years, with market

share gains across North

America, LATAM

andEurope.

120 years of science-led

infant nutrition

In 2025, MJN marked a milestone

anniversary, a moment to recognise our

heritage of supporting families, hospitals

and healthcare professionals, and our role

in advancing the understanding of human

milk and paediatric nutrition.

It was also a chance to highlight the

contributions of employees and partner

communities whose work underpins our

reputation for trust, quality and scientific

rigour. The milestone reaffirmed our

enduring commitment to providing

families with safe, effective nutrition

when breastfeeding is not possible or

when parents choose to supplement with

formula.

evidenced nutritional components. This

strategy underpins the design of targeted

solutions for infants and those whose needs

extend beyond standard nutrition.

The focus continues to be on our hero

ingredients with clinically proven outcomes,

such as proprietary prebiotic blend of PDX and

GOS, and MFGM (milk fat globule membrane),

which is shown to improve cognitive

development through five years of age

. These

ingredients remain central to the portfolio and

reinforce our scientific leadership and trusted

position among healthcare professionals.

Nutramigen continued to play a critical role

insupporting infants with cow’s milk allergy.

Strong paediatric recommendation data

underpinned its leadership in this specialist

segment while increased availability during the

year – particularly its reintroduction in selected

European markets – contributed to improved

regional performance.

Quality remained the central priority,

underpinning manufacturing standards,

scientific rigour and the delivery of safe,

effective nutrition, reflecting MJN’s long-

established commitment to the highest

standards.

MEAD

JOHNSON

NUTRITION

CHAMPIONING QUALITY

ANDCONSISTENCY

Robust performance in 2025

was supported by a focus on

quality, our unique flywheel

andscience-backed nutrition.

1 Cognitive skills as indicated by WPPSI-IV, tested at 5.5 to

6 years of age in a study of infant formula with MFGM

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The divestment of Essential Home represents a

significant step forward in unlocking

substantial value within the Group. It moves

Reckitt towards becoming a simpler, more

effective world-class consumer health and

hygiene company and enables sharper focus

on our core portfolio of high-growth, high-

margin Powerbrands. Under the majority

ownership of global private equity firm,

Advent, supported by Reckitt’s retained 30%

equity stake in Advent’s acquisition vehicle,

Essential Home will benefit from an agile

operating model and a dedicated

management team focused on realising the full

potential of its brands.

Heritage brands with strong local

relevance across key geographies

Essential Home brings together long-

established brands including Air Wick, Calgon,

Cillit Bang, Mortein, Easy-Off and Woolite, with

around 75 other brands across c.70 markets.

Withabroad portfolio in air care, surface care,

laundry and pest control, these brands are

well-known in their core markets, supported

by long-term retailer partnerships and

sustained consumer demand.

Preparing Essential Home for transition

tonew ownership

During 2025, focus remained on maintaining

in-market performance while putting in place

the core systems, processes and commercial

structures required for transition to Advent.

Transitional Service Agreements between

Reckitt and Essential Home will ensure that

continued collaboration for several years,

providing stability for customers and

consumers as the new company embeds its

long-term operating model.

I want to thank all our

Essential Home colleagues

for their contributions

toReckitt and wish them

well for the future.

Kris Licht

Air Wick

Maintaining category leadership

during organisational change

Demand for fragrance-led formats and

refill systems remained resilient during

2025, supported by R&D-driven

innovation that helped sustain Air Wick’s

leadership position within air care.

Throughout the transition period,

Essential Home prioritised uninterrupted

availability and consistent in-store

execution. Retail partners were

supported with clear activation plans,

while seasonal lines and planned

innovations were delivered on schedule.

This ensured that the brand continued

toperform reliably for consumers and

customers, reinforcing its importance

within the Essential Home portfolio

asitenters its next phase under

Advent’sownership.

Contribution to Reckitt in 2025

Reckitt owned 100% of Essential Home for

theentirety of the financial year 2025, with

thedivestment to Advent completing on

31December 2025.

In 2025, Essential Home contributed £1.9 billion

of net revenue to Reckitt, a decline of -6.3% at

constant FX (-9.5% decline on actual basis) and

£379 million ofadjusted operating profit, at a

margin of 20.5% (-350bps lower vs. 2024).

Performance during the year reflected varied

category and regional dynamics:

• Air care: challenging competitive and

consumer environment, particularly in

NorthAmerica

• Pest: impacted by strength of prior year’s

season, particularly in LATAM

• Homecare: resilient in a challenging

consumer environment across

developedmarkets

Operating margin fell due to the factors above

as well as pricing actions, lower manufacturing

volumes and maintaining planned marketing

investment. Together, these dynamics highlight

the variedperformance across markets and

the opportunities for further focus and value

creation under Advent’s ownership.

ESSENTIAL

HOME

PREPARATION AND FOCUS

INAYEAR OF TRANSITION

Essential Home continued to

support its portfolio of much-

loved heritage brands while

advancing preparations for its

divestment to Advent, which

completed on 31 December

2025.

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Financial Performance

Group financial performance

In 2025, Group net revenue grew by +5.0% on

a like-for-like (LFL) basis to £14,205 million

reflecting price/mix improvements of +4.1%

and a volume growth of +0.9%. If Essential

Home had been included in Group LFL, net

revenue growth would have been +3.4%.

Core Reckitt delivered LFL net revenue growth

of +5.2%

, with positive price/mix of +3.7% and

volume growth of +1.5%. The performance in

Core Reckitt reflects the enhanced focus on

our market-leading Powerbrands and the

strength of our geographic portfolio. Within

Core Reckitt, our Emerging Markets area

delivered +14.6% LFL net revenue growth, with

growth across all categories driven by our

brand and execution strengths. Ina challenging

consumer environment, our Europe area

declined -1.4% on a LFL net revenue basis while

our North America area grew LFL net revenue

by +0.2% with strong performance from

non-seasonal brands.

Mead Johnson Nutrition (+3.8% LFL net

revenue) returned to more normalised trading

in North America following the July 2024

tornado disruption with growth driven by

premiumisation and speciality brand growth.

Total Group net revenue on an IFRS basis was

+0.3%, reflecting foreign exchange headwinds

of -2.9% and net M&A impact of -1.8%.

Core Reckitt Top CMUs holding or gaining market

share at 51% in 2025 (55% on average across

Health and Hygiene GBUs at FY 2024) with

continued Emerging Markets competitiveness

balancing softness across seasonal OTC.

A YEAR OF STRATEGIC DELIVERY

Shannon Eisenhardt

Chief Financial Officer

Net revenue

£14,205mn

2024: £14,169mn

Adjusted operating profit

£3,543mn

2024: £3,475mn

Free cash flow

£1,709mn

2024: £2,232mn

The Group’s gross margin was up 10 bps

points at 60.8% with continued productivity

efficiencies and a stable input cost environment

balanced by the in-year impact of tariffs and

dilution from Essential Home’s gross margin.

Group marketing investment increased

to£2,337 million, representing 16.5% of Group

net revenues. Brand Equity Investment (BEI)

represented 14.6% of Group net revenues

(2024: 13.4%) aswe increased investment

across our Powerbrands to support innovation

launches and further drive brand strength,

particularly in Emerging Markets.

Group adjusted operating profit was £3,543

million (2024: £3,475 million) at an adjusted

operating margin of 24.9%

(2024: 24.5%),

40bps higher than the prior year, reflecting

marginally higher gross margin and driven by

efficiency improvements across the Group,

with continued delivery of cost savings from

our Fuel for Growth programme and planned

marketing investments through the year.

Core Reckitt adjusted operating profit of £2,731

million was 8.9% higher year-on-year at constant

FX (2024: £2,584 million), with adjusted operating

margin of 26.7%

, 90bps higher than 2024.

On an IFRS basis, operating profit was £4,217

million (2024: £2,425 million) at an operating

profit margin of 29.7% (2024: 17.1%). This was

predominantly driven by the gain on sale from

the divestment of Essential Home.

Following the announcement we made in our

July 2024 Strategy Update, in 2025 the Group

incurred £179 million of one-off costs in

relation to transformation and restructuring

excluded from adjusted earnings, including

the offset of certain restructuring and

separation costs against the proceeds of the

Essential Home divestment.

2025 saw a year-on-year increase in effective

adjusted tax rate to 24.7% (FY 2024: 22.2%)

with adjusted net finance expense of

£346million (2024:£323 million).

Total adjusted diluted EPS was 352.8 pence

in2025 (2024: 349.0 pence), a rise of +1.1%.

EPSgrowth reflects the growth in adjusted

operating profit, lower share count resulting

from the share buyback programme and

includes the impact of a higher effective

taxrate in 2025. Total IFRS diluted EPS was

467.2 pence (2024: 203.2 pence) with growth

mainly driven bythe gain on sale from the

divestment ofEssential Home.

Our proposed full year dividend is an increase

of+5.0% to 212.2 pence (2024: 202.1 pence) per

share, in line with our policy to deliver sustainable

growth through a progressive dividend. The final

proposed dividend is 127.8 pence (2024: 121.7

pence) pershare.

Free cash flow was £1,709 million

in 2025

(2024:£2,232 million) a 23.4%

decrease year-on-

year, mainly driven by higher restructuring costs

and cash tax paid. We continue to maintaina

strong balance sheet with net debt at1.6x

adjusted EBITDA, benefiting from the

cashproceeds from the divestment of Essential

Home immediately before the end of the year

(2024: 2.0x adjusted EBITDA).

1 Adjusted and other non-GAAP

measures, definitions and terms

are defined on page 203

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Financial Performance continued

EMERGING

MARKETS

Emerging Markets net revenue grew +14.6% in

2025 on a LFL basis to £4,291 million

. Growth

was broadly balanced with +7.9% price/mix

improvements and +6.7% volume growth.

Emerging Markets net revenue on an IFRS

basis was +10.5% reflecting foreign exchange

headwinds of -3.7% and net M&A impact

of-0.4%.

On a LFL basis, net revenue growth was

broad-based with all categories and all

regions in growth.

Growth in 2025 was led by our two largest

markets of China and India, with the ASEAN

and MENARP regions also strongly contributing

to area growth. In China (double-digit LFL

netrevenue growth), recent launches online

drove increased penetration and market

share. In India (high-single-digit LFL net

revenue growth), enhanced sales force

automation has driven distribution reach

across the country, with a double-digit

increase in towns covered, and enhanced

in-store execution.

All categories delivered LFL netrevenue

growth in 2025. Category performance was

led by Intimate Wellness, which was

underpinned by sustained performance of

Durex across the area and continued strong

online momentum of Intima, our feminine

hygiene brand, in China.

In Germ Protection, Dettol delivered strong

double-digit growth, driven by innovations

across home cleaning segments and

extensions to antiseptic liquid, such as Dettol

Activ-Botany. Harpic also contributed to Germ

Protection’s LFL growth, with double-digit

growth in the brand’s largest market of India.

In Self Care, our VMS portfolio performed well,

led by the ongoing success of Move Free and

MegaRed in China, Gaviscon grew double-

digit across the area, with LuftaGastroPro

Double Action launched in LATAM.

Finish grew double-digit in Emerging Markets

in 2025, with increased brand penetration

across a number of regions contributing to

growth, particularly in China and the ASEAN

region. In Household Care, Vanish grew

mid-single-digit with strength in China

morethan offsetting a more challenging

competitive environment in LATAM.

Emerging Markets adjusted operating profit

grew +27.9%

at constant FX to £896 million

in2025 (+22.6% on an actual basis). Emerging

Markets adjusted operating profit margin was

20.9%

up 210bps, driven by gross margin

expansion, including the benefits of category

mix, alongside the delivery of fixed cost

savings and efficiencies more than offsetting

increased marketing investment.

FY 2025 net revenue

£4,291mn

Volume +6.7%

Price/mix +7.9%

LFL +14.6%

Net M&A -0.4%

FX -3.7%

Actual +10.5%

Adjusted operating profit margin

20.9%

Actual +210bps

Adjusted operating profit

£896mn

Constant FX (CER) +27.9%

Actual +22.6%

1 Adjusted and other non-GAAP measures,

definitions and terms are defined on page 203

42%

of Core Reckitt

net revenue

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Financial Performance continued

EUROPE

Europe net revenue declined -1.4% in 2025

ona LFL basis to £3,384 million

, with a

-3.1%volume decline and +1.7% price/mix

improvement.

Europe net revenue on an IFRS basis was

-3.0% reflecting foreign exchange headwinds

of -1.3% and net M&A impact of -0.3%.

Our premiumisation strategy delivered price/

mix benefits in a challenging year for the area,

with consumer sentiment impacting category

volume and value growth through the year

and driving promotional pricing pressure.

Across the area we have focused on

supporting our Powerbrands and retaining

market leadership, with innovations driving

price/mix benefits aligned with our

premiumisation strategy.

Self Care declined low-single-digit in Europe,

with a mid-single-digit decline in seasonal

brands (predominantly Strepsils) driven by

lower cold and flu incidence in the year,

broadly offset by a strong performance in

non-seasonal brands, led by Gaviscon

(high-single-digit LFL growth) and supported

by Nurofen.

Finish declined low-single-digit in a highly

competitive promotional environment, with

the brand maintaining market leadership

across the area and driving continued

premiumisation through a formula upgrade for

our Finish Ultimate Plus All in One product.

Germ Protection declined low-single-digit

year-on-year as consumer value seeking

behaviour drove category dynamics. Dettol

LFL performance for the year was flat with

Harpic declining high-single-digit.

In Intimate Wellness, Durex’s category

leadership was enhanced through the

successful launch of Intensity, our new Nitrile

condom. Durex grew low-single-digit

year-on-year, with Veet growing mid-single-

digit.

Europe adjusted operating profit grew +2.4%

at constant FX to £1,064 million in 2025 (+1.4 %

on an actual basis). Europe adjusted operating

profit margin was 31.4%

, 130bps higher than

2024, driven by strong delivery of fixed cost

reductions from our Fuel for Growth

programme while gross margins were stable

year-on-year as volume declines were

partially offset by a positive mix impact from

our premiumisation strategy and solid pricing

performance in Self Care.

FY 2025 net revenue

£3,384mn

Volume -3.1%

Price/mix +1.7%

LFL -1.4%

Net M&A -0.3%

FX -1.3%

Actual -3.0%

Adjusted operating profit margin

31.4%

Actual +130bps

Adjusted operating profit

£1,064mn

Constant FX (CER) +2.4%

Actual +1.4%

1 Adjusted and other non-GAAP measures,

definitions and terms are defined on page 203

33%

of Core Reckitt

net revenue

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Financial Performance continued

NORTH

AMERICA

North America net revenue grew +0.2%

in2025 on a LFL basis to £2,559 million

Performance was broadly balanced with

+0.2% price/mix improvements and

flatvolumes.

North America net revenue on an IFRS basis

was -3.1% reflecting foreign exchange

headwinds of -3.3%.

Performance in the second half of 2025 (LFL

net revenue growth of +1.8%

) was ahead of

the first half which was impacted bylow

seasonal incidence and inventory dynamics, as

well as a challenging consumer environment

driven by tariff uncertainty.

Non-seasonal brands, including Lysol, Finish

and our VMS portfolio, make up c. 70% of

ourNorth America net revenues. Our non-

seasonal business performed strongly in

2025,growing low-single-digit on a LFL net

revenue basis.

In Germ Protection, Lysol grew low-single-

digit in 2025, driven by strong core

businessexecution, particularly in wipes and

supplemented by the continued performance

of recent innovations Lysol Laundry Sanitizer

and Air Sanitizer, both growing double-digit

year-on-year.

In Self Care, our VMS and non-seasonal OTC

brands delivered double-digit growth in 2025,

driven by innovation launches across our

Neuriva, Move Free and Biofreeze brands and

continued execution enhancement across

theclub and e-commerce channels in

NorthAmerica.

In Household Care, Finish delivered a resilient

performance in 2025, with net revenue

marginally below 2024, while in Intimate

Wellness, Durex performance was flat

year-on-year, with Veet growing double-digit.

Seasonal OTC brands (predominantly Mucinex

and Delsym) declined mid-single-digit

year-on-year on a LFL basis, a function of the

timing and severity of cold and flu incidence

through FY 2025.

North America adjusted operating profit was

flat at constant FX at £771 million in 2025

(-4.1% on an actual basis). North America

adjusted operating profit margin was 30.1%

down 30bps, with cost delivery balancing a

decrease in gross margin driven by category

mix and tariff impacts.

FY 2025 net revenue

£2,559mn

Volume 0.0%

Price/mix +0.2%

LFL +0.2%

Net M&A 0.0%

FX -3.3%

Actual -3.1%

Adjusted operating profit margin

30.1%

Actual -30bps

Adjusted operating profit

£771mn

Constant FX (CER) 0.0%

Actual -4.1%

1 Adjusted and other non-GAAP measures,

definitions and terms are defined on page 203

25%

of Core Reckitt

net revenue

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Financial Performance continued

Net revenue decreased -0.4%

on a LFL basis to £2,189 million in 2025, with volume decline

of -1.2% and price/mix of +0.8%.

Household Care net revenue on an IFRS basis declined -2.9% reflecting foreign exchange

headwinds of -2.5%.

Finish LFL performance was flat year-on-year with double-digit growth in Emerging Markets

offset by a more challenging competitive environment and consumer uncertainty in North

America and Europe (both low-single-digit declines year-on-year). Finish’s premiumisation

strategy continued to drive mix benefits while the brand delivered strong volume growth in

Emerging Markets as we continue to activate around developing auto dishwasher

penetration.

Vanish LFL performance was flat year-on-year with mid-single-digit LFL growth in Emerging

Markets (strength in China offsetting softness in LATAM) and a mid-single-digit decline

inEurope.

Net revenue increased +3.0%

on a LFL basis to £3,306 million in 2025, with volume decline

of -1.7% and price/mix of +4.7%.

Self Care net revenue on an IFRS basis grew +0.5% reflecting foreign exchange headwinds

of -2.1% and net M&A impact of -0.4%.

Seasonal OTC declined mid-single-digit, predominantly driven by the timing and severity

ofcold and fluincidence in North America and Europe and the lapping of a Covid spike

inQ3 2024. Mucinex saw a mid-to-high-single-digit LFL decline, while Strepsils declined

mid-single-digit, with balanced performance across Europe and Emerging Markets.

Declines in Seasonal OTC were more than offset by LFL net revenue growth in non-seasonal

OTC (low-single-digit growth), led by Gaviscon including double-digit growth in Emerging

Markets, as well as double-digit growth in our VMS portfolio (including Move Free, MegaRed

and Neuriva), which saw double-digit volume growth and high-single-digit price/mix growth.

Net revenue increased +8.4%

on a LFL basis to £3,224 million in 2025, with volume of +6.1%

and price/mix of +2.3%.

Germ Protection net revenue on an IFRS basis grew +4.5% reflecting foreign exchange

headwinds of -3.9%.

Growth was led by Dettol, which delivered double-digit growth in the year, driven by continued

strong performance in Emerging Markets. Dettol grew high-single-digit in India, with double-

digit growth in ASEAN and China following the launch of several new innovations.

Harpic grew mid-single-digit, with a strong performance in Emerging Markets (double-digit

growth in India and MENARP) partially offset by a more challenging environment in Europe.

Lysol grew low-single-digit in 2025, with growth across all areas. In Lysol’s largest market,

North America, strong commercial performance across core cleaning categories and the

continued penetration growth of Lysol Laundry and Air Sanitizers drove growth.

Net revenue increased +12.5%

on a LFL basis to £1,515 million in 2025, with volume growth

of+3.4% and price/mix of +9.1%.

Intimate Wellness net revenue on an IFRS basis grew +9.6% reflecting foreign exchange

headwinds of -2.2% and net M&A impact of -0.7%.

Durex grew double-digit in the year with LFL growth across our three areas driven by the

brand’s continued focus on innovation with Durex Intensity contributing to growth in Europe

alongside a number of upgrades to the Durex portfolio in China. In Emerging Markets, Durex

grew double-digit, with significant LFL net revenue growth in Africa, MENARP, China and India.

Veet grew double-digit in 2025, with growth across all areas led by Emerging Markets, while

Intima continued to show very strong momentum, with LFL net revenue close to doubling

in2025 driven by the brand’s adoption in China.

SELF CARE GERM PROTECTION

HOUSEHOLD CARE INTIMATE WELLNESS

1 Adjusted and other non-GAAP measures,

definitions and terms are defined on page 203

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Financial Performance continued

MEAD JOHNSON

NUTRITION

Mead Johnson Nutrition net revenue grew

3.8%

in 2025 on a LFL basis to £2,119 million.

with -2.3% volume decline and +6.1% price/

mix improvement.

Mead Johnson Nutrition net revenue on an

IFRS basis grew +0.4% reflecting foreign

exchange headwinds of -3.5% and net M&A

impact of +0.1%.

Our Mead Johnson Nutrition North America

business recovered after the Mount Vernon

tornado, which destroyed Mead Johnson’s

primary US warehouse on 9 July 2024, with

retailer inventory levels rebuilt to normal levels

in Q1 2025.

North America grew at mid-single-digit for

the year, with a recovery in North America

market share (2024 adversely impacted by the

Mount Vernon tornado) and the performance

of Nutramigen driving price/mix benefit.

Mead Johnson Nutrition International business

grew low-single-digit in the year, as growth

was led by ASEAN markets with a stable

performance across LATAM.

Mead Johnson Nutrition adjusted operating

profit grew +14.0%

at constant FX (+8.5% at

actual rates) to £433 million in 2025, including

the net benefit of insurance proceeds related

to the Mount Vernon tornado received in

2025.

Adjusted operating margin increased by 150

bps to 20.4%, with favourable gross margin

progression on production volumes against a

lower prior year period which was adversely

impacted by the Mount Vernon tornado.

FY 2025 net revenue

£2,119mn

Volume -2.3%

Price/mix +6.1%

LFL +3.8%

Net M&A +0.1%

FX -3.5%

Actual +0.4%

Adjusted operating profit margin

20.4%

Actual +150bps

Adjusted operating profit

£433mn

Constant FX (CER) +14.0%

Actual +8.5%

1 Adjusted and other non-GAAP measures,

definitions and terms are defined on page 203

15%

of Group net revenue

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Net finance expense

Adjusted net finance expense was £346

million (2024: £323 million). The increase in

adjusted net finance expense in 2025 was

primarily driven by increased interest payable

on borrowings due to the cost of debt issued

in the period.

IFRS net finance expense was £379 million

(2024: £321 million). The net finance expense

under IFRS is higher in 2025 due to a

remeasurement of payments as part of an

agreement to acquire remaining interests

from minority shareholders of £35 million.

Tax

The adjusted effective tax rate (ETR) was

24.7%

(2024: 22.2%). The 2024 ETR benefited

from a higher level of reassessment of

uncertain tax positions following progress on

and conclusions of tax authority audits.

The IFRS tax rate was 16.5% (2024: 31.9%). The

IFRS ETR in 2025 is lower than the adjusted

ETR due to differences in the accounting and

tax bases of net assets divested and the

deferred tax impact of the Vestacy disposal,

including foreign exchange recycling.

Earnings per share (EPS)

Adjusted diluted EPS was 352.8 pence (2024:

349.0 pence), an increase of 1.1%

. The increase

was due to higher adjusted operating profit at

constant exchange rates and the beneficial

effect of the ongoing share buyback

programme, partly offset by the impact of

foreign exchange.

IFRS diluted EPS was 467.2 pence (2024: 203.2

pence), an increase of 129.9%. The increase was

driven by a higher operating profit following the

disposal of the Essential Home business.

Balance Sheet

At 31 December 2025, the Group had total

equity of £7,781 million (31 December 2024:

£6,720 million).

Current assets of £5,635 million (31 December

2024: £4,598 million) increased by £1,037

million. Cash and cash equivalents increased

by £1,072 million, due to the receipt of Essential

Home disposal proceeds on 31December 2025.

Inventories reduced in the year following

thedisposal of the Essential Home business,

which was offset by receivables, including

those owed from the now disposed Vestacy

Group of £169 million.

Current liabilities of £6,650 million

(31December 2024: £7,943 million) decreased

by £1,293 million. The decrease principally

relates to lower short-term borrowings, and a

lower share repurchase liability in relation to

committed purchases under the share

buyback programme.

Non-current assets of £19,433 million

(31December 2024: £20,700 million) primarily

comprise goodwill and other intangible assets

of £15,811 million (31 December 2024: £17,565

million) and property, plant and equipment

(PPE) of £2,508 million (31 December 2024:

£2,385 million). The decrease in goodwill and

other intangible assets of £1,754 million is

primarily due to the disposal of the Essential

Home business and the impairment of the

Biofreeze intangible assets. The increase in

PPE is driven by capital investment in MJN, to

respond to regulatory and resilience needs,

and line enhancements across the Group,

aportion of which is within assets under

construction.

Non-current liabilities of £10,637 million

(31December 2024: £10,635 million) increased

by £2 million principally due to financing

activity, offset by a reduction in non-current

tax liabilities.

Net working capital

1,2

During the year, net working capital

decreased by £239 million to negative

£1,163million (2024: negative £1,402 million)

following the Essential Home disposal. Net

working capital as a percentage of 12-month

net revenue is –8% (31 December 2024: -10%).

The following section should be

read in conjunction with the full

year financial review from page 34

and the alternative performance

measures section from page 203.

Group operating profit

Adjusted operating profit was £3,543 million

(2024: £3,475 million) at an adjusted operating

margin of 24.9%

, 40 bps higher than the

prioryear (2024: 24.5%), driven by fixed

cost

reduction from Fuel for Growth and

deliveryof efficiencies under a simplified

operating model.

IFRS operating profit was £4,217 million (2024:

£2,425 million) at an IFRS operating margin of

29.7% (2024: 17.1%). IFRS operating profit was

impacted by the completion of the sale of

Essential Home to Lavender Bidco B.V. for total

consideration, net of disposal costs, of £2,172

million on 31 December 2025. Further

information is included in note 29 of the Group

Financial Statements. IFRS operating profit was

also impacted by an intangible assets

impairment charge of £250 million relating to

Biofreeze and other non-software intangible

assets (2024: £838 million). During 2025,

Biofreeze continued to perform below

expectations as a result of declining short and

medium term category growth rates which has

resulted in an impairment of £175 million (2024:

£142 million), (see note 9).

IFRS operating profit was also affected by

restructuring and other project costs of £195

million linked to the Group strategic

announcements in 2024. This principally

includes professional advisor fees and

severance costs relating to business

transformation and portfolio changes.

Cash flow

31 Dec 2025

£m

31 Dec 2024

£m

Adjusted operating profit

3,543 3,475

Depreciation, share-based payments and gain on disposal of fixed

assets (net of proceeds) 545 546

Capital expenditure (592) (465)

Movement in working capital and provisions (388) (271)

Cash flow in relation to adjusting items

1,2

(199) (61)

Net interest paid (303) (292)

Tax paid (897) (700)

Free cash flow

1,709 2,232

Free cash flow conversion

71% 91%

1 Adjusted and other non-GAAP measures, definitions and terms are defined on page 203

2 Further details on adjusting items can be found on page 208

Financial Performance continued

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Financial Performance continued

The Group regularly reviews its banking

arrangements and currently has adequate

facilities available to it. At 31 December 2025,

the Group had committed borrowing facilities

totalling £4,400 million (31 December 2024:

£4,450 million), of which £nil (2024: £124

million) wasdrawn at year end and of which

£4,400 million (31 December 2024: £3,500

million) expireafter more than two years.

TheGroup remains compliant with its banking

covenants. The committed borrowing

facilities, together with cash and cash

equivalents, are considered sufficient to meet

the Group’s projected cashrequirements.

Dividends

The Board of Directors recommends a final

2025 dividend of 127.8 pence (2024: 121.7 pence).

The ex-dividend date will be 9 April 2026 and

the dividend will be paid on 12 June 2026 to

shareholders on the register at the record date

of 10 April 2026. The final 2025 dividend will be

accrued once approved by shareholders.

On 20 February 2026, the Group paid a special

dividend of 235.0 pence per share. The total

cash paid was £1.6 billion.

Net debt

31 Dec 2025

£m

31 Dec 2024

£m

Opening net debt (7,914) (7,290)

Free cash flow 1,709 2,232

Share buyback (879) (1,328)

Share issues 40 –

Acquisitions, disposals of subsidiaries and NCI (net of cash)

1,794 –

Disposal of investments 1 17

Non-cash contribution by NCI 17 –

New lease liabilities (71) (70)

Discontinued cash flow (4) (1)

Dividends (including to NCI) (1,409) (1,383)

Foreign exchange and other movements 158 (91)

Closing net debt (6,558) (7,914)

2 Includes £8m of lease liabilities disposed with Essential Home

Return on Capital Employed (ROCE)

ROCE in 2025 was 14.1%

(2024: 13.5%), an

increase of 60 bps from 2024, due to higher

operating profits more than offsetting a higher

tax rate.

Capital returns policy

Reckitt has consistently communicated its

intention to use its strong cash flow for the

benefit of shareholders. Our priority remains

toreinvest our financial resources back into

theBusiness, including through value-adding

acquisitions, in order to deliver sustainable

growth in net revenue and improving earnings

per share over time.

In managing the Balance Sheet, we intend to

maintain key financial ratios in line with those

expected of an A-grade credit-rated business.

This will broadly define acceptable levels of

leverage over time. In 2025, our strong free

cash flow generation and healthy Balance

Sheet enabled us to return £879 million of cash

to shareholders through share repurchases

and£1,403 million through dividend payments.

Separately, the excess capital generated as a

result of the disposal of Essential Home was

returned to shareholders in February 2026

through a special dividend.

Growing the dividend is a long-term goal

ofthe Business. The Board’s dividend policy

aims to deliver sustainable dividend growth in

future years, subject to any significant internal

or external factors. Accordingly, the 2025

dividend was increased by 5% in line with

thisobjective.

Shannon Eisenhardt

Chief Financial Officer

Free cash flow (FCF) is the amount of cash

generated from continuing operating activities

after net capital expenditure on property, plant

and equipment and intangible software assets.

FCF reflects cash flows that could be used for

payment of dividends, repayment of debt or to

fund acquisitions or other strategic objectives.

FCF of £1,709 million decreased by £523 million

or 23.4%

. FCF conversion reduced by 20

percentage points to 71% due to higher tax

paid, higher capital expenditure and an

increased outflow relating to Group strategic

announcements. Net cash generated from

operating activities has decreased by £385

million to £2,297 million (2024: £2,682 million).

At 31 December 2025, net debt

was £6,558

million, a decrease of £1,356 million from 31

December 2024, as the proceeds, net of cash

disposed, from the disposal of Essential Home

of £1,786 million and lower spend on the share

buyback programme (£449 million) more than

offset the reduced FCF (£1,709 million).

Favourable foreign exchange movements

alsocontributed to a reduction in net debt.

Net debt was 1.6x adjusted EBITDA at

31December 2025 (31 December 2024: 2.0x).

It was a year of delivery

against our strategic plan,

of top and bottom-line

growth and substantial

cash returns to

shareholders.

1 Adjusted and other non-GAAP measures,

definitions and terms are defined on page 203

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

ENABLING CLEANER, HEALTHIER LIVES

Sustainability Performance

MORE SUSTAINABLE BRANDS HEALTHIER PLANET FAIRER SOCIETY

50%

net revenue from more

sustainable products by 2030

50%

reduction in product carbon

footprint by 2030

50%

reduction in virgin plastic

packaging by 2030

25%

recycled content in our

plastic packaging by 2025

Net zero

across our value chain

by 2040

65%

reduction in GHG emissions

in operations by 2030

100%

renewable electricity

by 2030

Water positive

in water-stressed sites

by 2030

50/50

gender balanced management

at all levels by 2030

30 million

people positively impacted by

oursocial impact investments

by2030 (cumulative since 2020)

2 billion

people engaged through

our purpose-led

partnerships, programmes

and campaigns (cumulative

since 2020)

38%

TargetProgress

18%

TargetProgress

12%

TargetProgress

97%

TargetProgress

73%

TargetProgress

48% male 52% female

2.8bn

TargetProgress

38mn

Progress Target

+ ERM CVS provides independent limited assurance over selected sustainability disclosures. The assurance report, along with

the principles and methodologies we use in our reporting, can be found online at reckitt.com/reporting-hub

1 Adjusted and other non-GAAP measures, definitions and terms are defined on page 203

2 Reduction targets for GHG emissions are from a 2015 baseline. Product carbon footprint includes Scope 1, 2, 3.1, 3.4, 3.9, 3.11

(direct only) and 3.12. Further detail is provided in our Basis of Reporting

3 Reduction target for plastic is from a 2020 baseline. All packaging data relates to 2024, which is driven by the Ellen

MacArthur Foundation reporting timelines. 2025 data will be available in mid-2026

4 Reckitt’s net zero target means we aim to negate the amount of greenhouse gas emissions across our value chain, including

Scopes 1, 2, 3.1, 3.11 (direct only) and 3.12 by 2040. This aligns with the categories included within our current near-term

Scope 3 science-based emissions reduction target (see page 44). Further detail is provided in our Basis of Reporting

5 Data as of 31 December 2025 for active Reckitt employees (excluding contractors). ‘All management’ includes: Executive

Committee member, Group leadership team, senior management team, middle manager and manager

This dashboard summarises our performance against our key Sustainability Ambitions. A full performance breakdown can be found in our

ESG Data Book, available at reckitt.com/reporting-hub.

Reckitt products are used in millions of households every

day. This scale reflects the trust people place in our

brands and with that trust comes responsibility. Through

this pillar, we focus on putting more sustainable products

into the hands of consumers by reducing their footprint

right across the product lifecycle.

Reckitt operates across complex global value chains and

diverse consumer markets, where social inequality and

labour rights risks increasingly shape how businesses are

judged. Building stronger communities within our

workforce, supply chain and markets is central to creating

long-term value and resilience.

A healthy planet is fundamental to a thriving future.

Climate change poses a significant risk to both public

health and our Business. We are committed to playing our

part in addressing planetary challenges by minimising our

environmental footprint and striving to make a positive

impact through our programmes.

5.02 mtCO

TargetProgress

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Our products are used in millions of

households every day. We are committed to

putting more sustainable products into the

hands of our consumers.

38%



of net revenue came from more sustainable

products this year

Our Sustainable Innovation Calculator (SIC)

forms the basis for our assessment. A

streamlined product lifecycle assessment tool,

the SIC evaluates our products’ raw materials,

packaging and environmental impact to

establish if innovations are more sustainable

than their predecessors, a key ambition as we

strive to generate more revenue from more

sustainable products. Full details on our SIC

can be found at reckitt.com.

Since 2021, we have seen year-on-year

revenue growth from more sustainable

products and this year we saw 38% net

revenue from more sustainable products.

The performance has been driven across all

categories but with significant improvements

being delivered through Dettol, Lysol, Harpic

and Vanish, along with sustained performance

from Durex and Finish. The increase in

post-consumer recycled content (PCR) across

many packaging formats has been pivotal in

delivering more sustainable products,

contributing to a circular economy while also

delivering carbon benefits.

Performanceagainst our 25% PCR target by

2025 will be reported later in 2026 together

with refreshed packaging-related targets.

These new 2030 goals will reflect the

increasing external requirements we face in

our markets and the dependencies we have

on recycling infrastructure. They also

acknowledge the critical function packaging

plays in achieving our carbon reduction goals.

Beyond product design, we aim to minimise

impact when consumers use our products.

Leveraging the scale and reach of our

Powerbrands allows us to influence how

products are used in the home. For example,

Finish promotes water conservation through

its longstanding ‘Skip The Rinse’ campaign

and Vanish enables consumers to save water,

energy and money by working effectively at

low washing machine temperatures.

More sustainable brands

More sustainable

producthighlights

Dettol body wash, Middle East

Byswitching from a dispensing pump

closure to a polypropylene flip top cap

across all variants of its 500ml body wash

bottles, Dettol was able to reduce total

packaging weight by 29%.

Finish Quantum and Finish Power, US

In July2025, Finish introduced technically

recyclable stand-up pouch laminate,

manufactured from our St. Peters factory

in the US. The new pouch is lighter and

delivers packaging material savings.

Luftal Max, Brazil

Launched in October 2024, this 2x more

concentrated formula halved the dosing

requirement, resulting in improved

carbon, water, plastics and packaging

performance within the SIC.

Durex, Europe

Durex replaced the metallised PET film

layer on condom cartons with transfer

foil, reducing weight and improving

recyclability. The product also gained Fair

Rubber Association certification for latex.

More detail on sustainable product

innovations

isavailable in our 2025

Sustainability Report at reckitt.com

Everything we do is focused on

delighting consumers with our

iconic brands, while ensuring that

responsible sourcing, production

and use are at the heart of how

weoperate.

We put more sustainable products into the

hands of consumers, creating positive impacts

for people and society while strengthening

resilience and supporting growth for Reckitt.

Our Sustainability Ambitions, established in

2020, are an integral part of our strategy.

Across the three pillars of more sustainable

brands, healthier planet and fairer society, we

are addressing the issues that matter to our

stakeholders and that strengthen our Business

and support brand performance.

As the Business transforms and the world

changes, so must our sustainability agenda,

with2025 a milestone year for some of our

ambitions. This, together with the drive to

simplify our Business, means we are reviewing

our priorities and will update some ambitions

during 2026. For example, our 50% target for

netrevenue from more sustainable products

by2030 will focus on Core Reckitt only. This

reflects the standards and regulations that

affect our Mead Johnson Nutrition business and

make adopting more sustainable solutions, e.g.

PCR content in food contact packaging, more

complex. Our commitment to addressing global

challenges remains unwavering and our activity

continues to mitigate risk, fuel growth and

deliver sustainable solutions.

We are signatories to the UN Global Compact

and are committed to supporting the Ten

Principles and the Sustainable Development

Goals (SDGs). You can find more information

on our sustainability approach within our

Sustainability Report and Modern Slavery

Statement at reckitt.com.

More information on our Sustainability Ambitions

reporting methodologies can be found in our

BasisofReporting at reckitt.com/reporting-hub

Sustainability Performance continued

1 Adjusted and other non-GAAP measures,

definitions and terms are defined on page 203

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Sustainability Performance continued

Climate change

Safeguarding the planet is a business

imperative and climate change represents a

risk to our operations while posing an

increasing threat to public health. We aim to be

net zero by 2040 across our value chain and

our climate transition plan sets out the

milestones we need to hit to deliver this goal.

Our near-term focus continues to be on

delivering our science-based targets,

prioritising significant reductions in Scope 3

emissions by 2030, where most of our impact

lies (over 98%).

Our partnership with CO

AI continues to

strengthen our understanding of our upstream

value chain, supporting more granular analysis

across raw material, packaging and supplier

specific data. This is shaping our

decarbonisation glidepath at the category

level, facilitating meaningful discussion around

material and investment strategies. We have

identified 29 priority materials, responsible for

80% of our ingredient and packaging footprint

and over half of our total Scope 3 emissions.

These materials are now the focus of targeted

action, including the development of lower-

carbon alternatives and reformulation.

This year, our product carbon footprint reduced

by 9% vs 2015, and 4% vs 2024. Alongside raw

materials and packaging, logistics continue to

be a significant contributor to our overall

Scope 3 emissions, with over 13% associated

with upstream transportation and distribution.

Through our green logistics programme, we

have been engaging with our customers,

suppliers and distribution centres to evaluate

low-carbon road and sea freight options.

This includes fuel switches, intermodal change,

trialling and scaling the use of electric vehicles

and targeting fuel and transport efficiencies by

optimising loads.

For the last few years we have surpassed our

science-based Scope 1 and 2 emissions

reduction targets, making incremental

year-on-year improvements through our

investments in energy efficiency and

renewable energy.

More than one-third of our sites now generate

renewable energy for use on site, reducing

costs and bringing greater energy resilience.

97% of electricity comes from renewable

sources through on-site generation, Power

Purchase Agreements (PPAs), Green Tariffs and

Renewable Energy Certificates (RECs).

2025 marks the five-year milestone since

theScience Based Targets initiative (SBTi)

validated our climate reduction ambitions.

Weare in the process of updating and

re-validating our targets as part of our

widerSustainability Ambitions review.

For our Climate-related FinancialDisclosures,

see pages 198-202

Healthier planet

Metric Unit 2025

2024

restated² 2024

Scope 1 emissions tCOe 101,489

106,301 107,029

Scope 2 emissions (market based) tCOe 6,167

6,714 6,714

Scope 2 emissions (location based) tCOe 226,199

233,065 232,882

Total Scope 1 and 2 emissions (market based) tCOe 107,656 113,015 113,743

Total Scope 1 and 2 emissions (location based) tCOe 327,688 339,366 339,911

3.1 Purchased goods and services tCOe 4,253,274 4,555,226 4,126,467

3.4 Upstream transportation and distribution tCOe 1,028,029 1,011,275 1,107,400

3.5 Waste generated in operations tCOe 28,125 26,116 26,116

3.6 Business travel tCOe 31,978 43,610 43,610

3.9 Downstream transportation and distribution tCOe 1,547,191 1,560,183 1,560,183

3.11 Use of sold products (direct only) tCOe 335,643 367,440 379,457

3.11 Use of sold products (including indirect) tCOe 27,535,267 28,981,588 29,417,952

3.12 End of life treatment of sold products tCOe 323,027 329,071 302,091

3.13 Downstream leased assets tCOe 30,481 28,304 28,304

Total Scope 3 emissions (direct consumer use only) tCOe 7,577,748

7,921,225 7,573,628

Total product carbon footprint (direct consumer use only) tCOe

7,592,507

7,933,238 7,585,641

Scope 1 and 2 GHG emissions intensity (market based)

- tCOe per tonne of production 0.03 0.04 0.04

- tCOe/£m revenue 0.007 0.008 0.008

Energy consumption resulting in Scope 1 and 2 emissions MWh 1,217,726 1,238,790 1,244,716

Proportion of energy consumption from UK operations % 10 10 10

Proportion of Scope 1 and 2 emissions from UK operations % 9 9 9

Emissions information

+ Assured by ERM CVS as part of limited assurance engagement in accordance with International Standard on Assurance

Engagement (ISAE) 3000 (revised) and ISAE 3410 for greenhouse gas data issued by the International Auditing and

Assurance Standards Board. The assurance report, along with the principles and methodologies we use in our reporting, can

be found online at reckitt.com/report-hub

1 We report on emission sources required under the Companies Act 2006 (Strategic Report and Directors’ Report)

Regulations 2013 and the Streamlined Energy and Carbon Reporting (SECR) requirements covering the 2024 reporting year

(1 January–31 December). Emissions have been calculated in line with the World Resources Institute (WRI)/World Business

Council for Sustainable Development (WBCSD) Greenhouse Gas (GHG) Protocol - Corporate Accounting and Reporting

(revised edition). Our GHG emissions and energy data includes emissions and energy consumption from operations covered

by the Group Financial Statements for which we have operational control

2 Prior year Scope 1 and 2 data has been restated to exclude divested sites and updates to the International Energy Agency

GHG emission factors. Prior year Scope 3 data has been restated as a result of methodology improvements. See our Basis of

Reporting for details at reckitt.com/reporting-hub

3 Total Scope 3 emissions includes the following Scope 3 categories: 3.1, 3.4, 3.5, 3.6, 3.9, 3.11 (direct), 3.12 and 3.13

4 Total product carbon footprint is a measure of direct and indirect GHG emissions associated with Reckitt products across

the value chain. It includes Scope 1 and 2 emissions and the following Scope 3 categories 3.1, 3.4, 3.9, 3.11 (Direct), 3.12. The

methodology is detailed in our Basis of Reporting at reckitt.com/reporting-hub

5 The scope of our GHG emissions per tonne of production covers manufacturing and warehousing. Including R&D and offices

the GHG emissions intensity per unit of production in 2025 was 0.04 tCOe

Solar panels at our Taicang factory in China

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

WWF partnership in Mexico

to deliver water positivity

As part of our water-positive programme,

Reckitt is partnering with WWF-Mexico on

the restoration of forests in the Cutzamala

System watersheds, a key hydrological

system which supplies water to the

inhabitants and businesses in and around

the Mexico City areas, including our

Atizapan and Tlalpan manufacturing sites.

By investing in nature-based solutions,

including the reforesting of over 270

hectares with 300,000 native trees, we are

helping to improve water security, to

replenish an estimated 100,000 cubic

metres of water per year while creating

jobs and raising awareness of sustainability

through workshops for over 1,000 people.

Water stewardship

Access to water is a fundamental right, yet its

availability and quality are being increasingly

threatened by climate change. Our Business

depends on water to make our products and

our consumers need reliable access to safe

water to use them. Water access to build

stronger communities is therefore a business

priority.

Sixteen of our manufacturing sites operate in

water-stressed areas. We are committed to

reducing our impact at these locations,

advancing water stewardship programmes

and building business resilience. We are

aiming for all sites in water-stressed locations

to be water positive by 2030. To date, we

have achieved water-positive status at three

sites in India: Hosur, Mysore and, in 2025,

Sitarganj. We are also progressing projects in

Mexico, Pakistan and South Africa.

Improving access to clean water,

sanitation and hygiene (WASH)

Our social impact programmes focus on

creating lasting impact to help people live

cleaner, healthier lives. We focus on areas

with the greatest need, investing in access to

WASH for local communities. Our

longstanding partnership with water.org has

enabled lasting access to WASH for more than

2.7 million people in India, Indonesia, Kenya

and Nigeria. We have mobilised over $150

million through the innovative microcredit

model and invested $7.4 million in impact

funds, supporting climate-resilient

infrastructure projects around the world.

For more information about our work in driving

access towater, see our Social Impact Report,

available at reckitt.com

Sustainability Performance continued

Latex, a key commodity in our Durex condoms,

is sourced from Thailand, India and Malaysia. We

have a longstanding commitment to invest

within these latex supply chains to ensure

quality and consistent supply. In 2025, our

partnership with the Fair Rubber Association

(FRA) led to premium payments of over £1.3

million made to the FRA which shared this

directly with registered latex farmer

associations. We expect some fluctuation in our

certification coverage as we adjust our sourcing

to deliver our resilient latex supply chain agenda.

In 2025, we continued our investment in

smallholders in southern Thailand to build supply

resilience for the long term. Through our

partnership with the Earthworm Foundation,

smallholder latex farmers receive training to

deliver higher yields, improved quality and

increased incomes. Results show this

investment at the farm level works, delivering

quality latex for Durex and building sustainable

livelihoods for latex farmers, helping to ensure

that theyremain in the industry.

Our palm oil sourcing strategy continues to

support our commitment to No Deforestation,

Peat and Exploitation (NDPE). With over 90%

ofour palm supply in derivatives, supplied from

complex supply chains which make traceability

challenging, we work with industry peers to

drive progress we cannot make alone. We

co-lead the Consumer Goods Forum (CGF) Palm

Oil working group committed to accelerating

systemic efforts towards addressing

deforestation and conversion risks through

collective action.

Alongside our commodity-specific targets, we

also continue to measure our impact on nature

inkey raw material supply chains via the Nature

Analytics methodology in collaboration with

Nature-based Insights, a scientifically rigorous

approach that uses the Biodiversity Impact

Metric (BIM) for estimating our biodiversity

footprint, understanding the main pressures on

nature in our sourcing landscapes and monitoring

the impact of our activities in five sourcing

landscapes, including palm and latex.

Ensuring resilient

ecosystems through

place-based tech-enabled

interventions

WWF and Reckitt are working together

to champion resilient, healthy

ecosystems. Across the world, we are

delivering impact together through our

partnership in key landscapes.

Approximately 10% of our palm oil is

sourced from the Sebangau Katingan

(SEKA) landscape of Indonesia. In

partnership with WWF-Indonesia, we are

creating a more transparent and

sustainable palm oil supply chain,

identifying mills and engaging companies

to utilise the Hamurni app, a practical and

inclusive tool for supply chain mapping

and traceability. More than 250

smallholders, covering over 250 hectares,

have been registered on the tool since

the project started in July 2024.

The programme is piloting Nature-based

Solutions, including agroforestry

initiatives, with selected smallholders and

from 2026 will be connected with our

Nature Analytics frameworks to make

decisions based on evidence and monitor

our impacts on nature in the landscape.

Addressing biodiversity risks with

nature-based solutions

We are committed to addressing deforestation

risks and delivering programmes of positive

impact on nature in key locations associated

with our priority natural raw materials. These

include latex and palm oil.

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Sustainability Performance continued

We believe that building stronger

communities within our workforce, supply

chain and consumer markets will create a

fairer society and a stronger marketplace.

We are committed to protecting human rights

and continue to focus on fairness and respect

for all. Our Modern Slavery Statement,

available at reckitt.com, provides information

on our approach to labour and human rights

and the progress we are making.

Workforce inclusivity

At Reckitt, we recognise that our people are a

source of competitive advantage. The fact

that we are all unique gives us diversity of

thought and greater creativity.

Our commitment to increasing inclusion

across different nationalities, ages,

backgrounds, identities, beliefs, cognitive

diversity and gender, is fundamental to

afairand equitable working environment

andtoproviding relevant and meaningful

products and services to our consumers

around the world.

We are committed to gender balance at all

management levels and in 2025, 52% of

management roles were filled by women.

Inclusion also means fair pay for all and we

continue to uphold responsible employment

standards and accreditation to the Global

Living Wage Certification.

Fairer society

Our global commitment goes beyond the

basic obligation and extends to everyone who

contributes to our Business, not only

employees but also interns, trainees and

apprentices, demonstrating our dedication to

fairness and inclusivity in ways that surpass

standard market practices. Including those in

the early stages of their careers within this

approach ensures that opportunities are

accessible to individuals from diverse and

low-income backgrounds, eliminating some

financial barriers to career development.

Our gender pay gap is reported within the

Directors’ Remuneration Report on page 101.

For more information, see People and Culture

on page 8-9

52%

of all management roles filled by women

Scaling access to health

and hygiene

Since 2020, Reckitt has partnered with

global experts to support 80+ social

entrepreneurs across 15 countries,

powering solutions that have improved

health and hygiene access for over 2

million people. Launched at Cannes in

2025 together with Serena Williams as

our Entrepreneur-in-Residence, Reckitt

Catalyst is a global programme that

connects grassroots impact with the core

of our Business. Our five-year

commitment will provide funding,

mentorship, and expertise to up to 200

women-led and underrepresented social

innovators by 2030, expanding access to

health and hygiene for 5 million people

worldwide.

For

more information see our Social Impact

Report, available at reckitt.com

Advancing global health, hygiene

andinclusive growth

Our social impact strategy aims to create

thriving communities. Since 2020, we have

impacted more than 38 million people with

improved access to health and hygiene in

more than 50 countries.

Together with our partners, we are driving

systems change and addressing global health

and hygiene challenges through impactful

programmes and behaviour change initiatives.

We are working with governments to create

national health platforms like Banega Swasth India

and Dettol Hygiene Quest in Nigeria, bringing

access and education to millions ofpeople.

Throughout our work, we specifically look to

support women and girls, and scale social

enterprises from underrepresented founders.

By investing in local changemakers and linking

them to our value chain, we are creating

opportunities for inclusive growth.

Allyship Day celebrating inclusion at Turner House, Slough, UK

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Sustainability Performance continued

We are committed to the Ten Principles of the UN Global Compact in the areas of human rights, labour, the environment and anti-corruption.

NON-FINANCIAL AND SUSTAINABILITY INFORMATION STATEMENT

Relevant policies and risk management processes Additional information

Environmental matters Our Environmental Manufacturing Policy sets out our objectives for reducing our environmental impacts. It requires compliance with relevant legislation,

consideration of environmental issues in key decisions and engagement with multiple stakeholders for better environmental performance, which is

monitored through our Group Environmental Management System. Our Supply Chain Leadership team routinely monitors environmental performance,

including progress on our climate ambitions through our operational programmes. These are also reviewed at Group and Board level. Our Sourcing for

Sustainable Growth Policy sets out Reckitt’s human rights, health and safety, environment and sourcing requirements for all business partners. The policy

details six responsible sourcing principles that drive us to conduct business with honesty and integrity, respect human rights, provide a safe and healthy

working environment, use safe and sustainable ingredients, source raw materials responsibly, protect the environment and reduce environmental impact. The

policy applies to Reckitt employees and third parties.

Sustainability Performance,

pages 42-45

Employees Reckitt’s Code of Conduct governs standards of conduct in relation to our employees, as well as our stakeholders. All employees must complete Code of

Conduct training and are encouraged to refer to the code frequently to ensure the right decisions are made. In addition, Reckitt has policies committing to

equal opportunities at work and to providing a safe and healthy working environment. Health and safety performance is monitored through our Group

Occupational Health and Safety Management System, enabling us to investigate any incidents and take any necessary action. We have a Speak Up Policy and

process, allowing any employee or third party to confidentially report a violation of the Code of Conduct, local law or regulation, or unethical behaviour.

People and Culture, pages 8-9

Human rights Respecting human rights is an absolute and universal requirement and through our Code of Conduct we set out our commitment to respecting the

fundamental human rights defined in the UN Universal Declaration of Human Rights. Our Labour and Human Rights Standard sets out the requirements and

practices expected of our supply chain. Our Sourcing for Sustainable Growth Policy (see above) also encompasses principles of the International Bill of Human

Rights and the International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work. We also follow the UN Guiding Principles

on Business and Human Rights and Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises. Potential

human rights violations and associated consequences, including reputational, trade and regulatory impacts, are reported to the Group Compliance

Committee, with monthly human rights reporting provided to senior leadership across Supply, Procurement, Human Resources and Legal.

See our Modern Slavery

Statement

Social and community

matters, including consumers

Reckitt’s Product Safety Policy describes our approach to safety assurance for products, covering product development; monitoring in-use safety and

feedback from users; and reacting promptly and effectively to mitigate potential harm. In addition, our Responsible Marketing Policy covers the full marketing

lifecycle of our products and applies to all marketing communications and channels. It applies to everyone at Reckitt and external parties. We also monitor

consumer, customer and employee feedback on an ongoing basis, through our consumer care lines or our Speak Up Line.

See our Sustainability Report

Anti-bribery and corruption Our Business Integrity Policy sets out the standards and expectations that guide our global operations, ensuring compliance with anti-bribery, anti-corruption,

and related laws wherever we operate. It applies to all Reckitt companies, employees and contractors. As part of our broader compliance framework, all

employees and contractors must complete mandatory annual Code of Conduct training which includes anti-bribery and anti-corruption modules. Potential

breaches in compliance with our Code of Conduct related to anti-bribery and anti-corruption are captured via our Speak Up confidential whistle-blowing

process and reported to the Compliance Committee in conjunction with the Audit Committee when allegations relate to financial matters.

Emissions information Sustainability Performance, page 44

Climate-related financial disclosures Our climate-related financial disclosures can be found on pages 198-202

and are incorporated into the Strategic Report by reference

Diversity information See our ESG Data Book

Policy embedding, due diligence and outcomes Risk Management, pages 48-51

Principal risks and impact of business activity Risk Management, pages 48-51

Description of business model Business Model, page 7

Non-financial key performance indicators Sustainability Performance, page 42

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Risk Management

RISK MANAGEMENT AT RECKITT

Understanding and managing risk

are essential to the safe and

sustainable growth of our

Business and to the successful

delivery of our strategic priorities.

Our risk management framework

Our risk management framework provides a

consistent and structured approach to risk

management across the organisation. It sets

out clear principles, standards and

accountabilities, guiding behaviour and

ensuring risks are escalated and managed by

the right people at the right level and at the

right time. This enables decisions to be taken

confidently and at pace.

During the year we reviewed and refreshed

this framework to ensure that it remains fit for

purpose as the Business continues to

transform. The review strengthened

ownership and accountability, enhanced

clarity of roles and responsibilities and

reinforced the robustness of our Group risk

management process to ensure it remains

aligned to the evolving nature of the Business.

Risk appetite

The Board interprets risk appetite as the level

and type of risk that the Company is willing to

accept in pursuit of its business objectives.

Risk appetite is communicated throughout the

organisation through the strategic and

business planning process embedded within

our policies, controls and governance

frameworks.

In setting and reviewing risk appetite, the

Board recognises the need for risk mitigation

to be proportionate to the benefits gained,

while retaining sufficient flexibility to support

Reckitt’s dynamic and entrepreneurial culture.

The Board reviews the three-year business

plan and associated strategic risks when

assessing risk appetite.

Specific financial risk appetites, including

funding and liquidity, credit, counterparty,

foreign exchange, interest and commodity

risk, are defined within Board-approved

Treasury Policies. Compliance with our safety

standards and our legal and regulatory

requirements is mandatory.

Risk governance

Reckitt’s risk governance model underpins the

risk management framework and supports

effective oversight, management and

reporting of material risks. The Group

operates the three lines of defence model,

with clearly defined roles and responsibilities

for managing risk.

The Board has overall responsibility for risk

management at Reckitt. Oversight is achieved

through a combination of strategic reviews,

governance through Committees and focused

deep dives into selected risk areas.

Ownership and day-to-day management of

principal risks sits with the Group Executive

Committee (GEC), with a designated GEC

owner accountable for each principal risk.

Reflecting our simplified organisational

structure, the GEC is supported by Group and

Area Compliance Committees. These are

embedded within the governance framework,

meet quarterly and are responsible for

reviewing, challenging and monitoring risk

management activities, with escalation

between Committees as required.

The Audit Committee monitors the

effectiveness of the risk management and

internal controls framework.

Risk management process

Our Group risk management and reporting

process is designed to be practical,

proportionate and effective, supporting

business operations while enabling

management and the Board to fulfil their

duties under the UK Corporate Governance

Code. This process ensures that risks are

appropriately prioritised and resources are

focused on the areas of greatest significance.

Our Group Risk team, part of the wider

internal audit and risk function, facilitates the

process. This includes coordinating risk

identification across functions and business

areas, consolidating the Group view of

principal risks, supporting senior engagement

and sign-off, and reporting to the Board and

its Committees.

The Group’s risk profile is reviewed biannually

and prioritised based on impact, likelihood

and speed of impact, reflecting the time

available to respond should a risk materialise.

The output of this process informs the

Viability Statement assessment.

Emerging risks

Emerging risk and horizon scanning is

integrated into our risk management process

to anticipate trends that could impact the

Business over the longer term. These include

structural trends, single-point shocks and

thecombination of risks. Emerging risks are

discussed with the GEC throughout the

yearto ensure that they are appropriately

considered in strategic planning and

decisionmaking.

Board and Subcommittees

Group and Area Risk and Compliance Committees

Third line: Risk

assurance

Internal audit

• Regular,

independent

monitoring and

assessment

of the

appropriateness

and effectiveness

of the

governance,

control and risk

management

process

Second line: Risk challenge

Corporate and global functions

• Ensures that controls and risk management

processes of the first line are working as intended

• Establishes policy and frameworks and provides

support, monitoring and challenge on risk and

compliance-related activities

First line: Risk ownership

Business, categories and sites

• Day-to-day ownership and management

of risks and controls

• Responsible for the implementation and

development of control and risk management

processes

Accountability and reporting

Operational risks

Strategic risks

Risk identification

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

PRINCIPAL RISKS

Operational

Risk Risk impact How we are managing the risk

Technology resilience

and information

security

Link to strategic priorities:

Reckitt’s increasing reliance on digital

and AI technologies for operations,

supply chain management and

consumer engagement exposes the

organisation to cyber attacks, IT

system failures and potential data

breaches which could lead to

disruption of critical operations,

unauthorised access to sensitive data

and non-compliance with regulatory

requirements.

• A Cyber Security Framework aligned to recognised industry standards, including ISO and the National Institute of

Standards and Technology (NIST), underpins protection against evolving threats

• Proactive horizon scanning, threat monitoring, penetration testing and third-party cyber risk management strengthen

resilience across our digital ecosystem

• An IT and Digital Governance Framework ensures rigour across key technology and data processes by defining clear

policies andprocedures

• IT General Controls define control activities across access management, change management, IT operations, and

third-party management

• An AI Framework governs the safe and responsible use of artificial intelligence across the Group

• Established disaster recovery capabilities enable rapid restoration of critical services, minimising disruption

Supply chain continuity

andresilience

Link to strategic priorities:

Our ability to source materials, and

manufacture and distribute our

products through our global network

relies on complex manufacturing and

supply chain processes.

Failure to source, manufacture and

maintain supply of quality products

could result in product shortages,

impacting financial performance and

consumer confidence in our brand.

• A structured Supplier Management Programme strengthens resilience through risk mitigation and qualification of

alternative sources for critical materials and manufacturing

• Business continuity planning across our factories, logistics partners and key suppliers helps minimise disruption,

supported by scenario planning and resilience assessments

• A Global Crisis Management Framework enables rapid escalation and coordinated response to emerging events,

ensuring continuity of supply to customers and consumers

• Comprehensive property damage and business interruption insurance provides financial protection in the event of major

incidents, complementing our broader supply chain resilience strategy

Risk Management continued

Link to strategic priorities

Portfolio value creation Product superiority Winning in market Fixed cost optimisation

The Group’s principal risks represent the most significant risks facing

our Business and arise from one or a combination of internal or external

factors. They have been assessed in accordance with the risk

management process outlined on the previous page and are aligned

with our strategic priorities.

Our principal risks have remained consistent with the prior year. However, four have a

heightened level of risk, largely due to external factors, and continue to be closely monitored:

product integrity risk, driven by increased regulatory scrutiny of product efficacy and safety

which is creating greater uncertainty; supply chain continuity and resilience, due to single-source

dependencies and reliance on key manufacturing sites; technology resilience and information

security, reflecting the scale and sophistication of external threats and the complexity of the IT

landscape; and geopolitical instability, with ongoing regional conflicts, global shipping

disruptions and evolving tariffs, sanctions and regulatory shifts affecting costs, supply chains

and market access.

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Risk Management continued

Risk Risk impact How we are managing the risk

Product innovation

Link to strategic priorities:

Our continued growth and success

depend on our ability to innovate,

produce relevant products and

maintain our value proposition.

Failure to effectively innovate and

launch new products to meet

consumer preferences could lead to

diminished brand presence, market

share and profitability.

• Consumer insights are embedded into our innovation pipeline, ensuring alignment with evolving trends and behaviours

• A disciplined Product Lifecycle operating model with defined stage gates and cross-functional governance ensures

rigorous development and prioritisation

• Targeted Intellectual property protection via patent filing, designs, trade secrets and trademarks

• Innovation pipeline reporting provides visibility to senior leadership, enabling informed resource allocation and

decisionmaking

• Continued investment in science platforms strengthens claims, product performance, long-term differentiation and

competitive advantage

• Strategic supplier and academic partnerships expand access to emerging technologies and sustainability capabilities

beyond internal expertise

Business

transformation

Link to strategic priorities:

The uncertainty inherent in large-scale

change risks loss of management or

key personnel, disruption of short-

term operations and change fatigue,

adversely affecting performance.

Additionally, failure to prioritise

resources effectively to achieve

targets could jeopardise the delivery

of our medium and long-term growth

ambitions.

• A central Project Management Office, supported by external experts, provides disciplined planning, tracking and

execution of transformation initiatives, including monitoring KPIs, capacity and talent retention

• Transformation programmes are regularly re-evaluated and reprioritised to ensure resources are focused on the highest

value initiatives with minimal disruption to day-to-day operations

• Clear governance, decision making processes and role clarity help drive consistent execution and faster issue escalation

• Targeted investments in capability building, digital tools and ways of working reinforce long-term benefits and help

embed new processes sustainably

Geopolitical instability

Link to strategic priorities:

Reckitt operates in a challenging and

unpredictable trading environment

influenced by various external factors

that can impact our operations and

financial performance.

Geopolitical disruptions, regional

conflicts and trade restrictions add to

the complexity of our operating

environment.

• Regulatory and Government Affairs teams actively monitor risks, gather intelligence, engage in policy discussions and

conduct scenario planning to strengthen resilience

• Strengthened crisis management and business continuity frameworks support faster escalation and clear ownership

• The GEC provides oversight of geopolitical risks, including ad hoc horizon scanning and scenario-based assessments

• Cross-functional stress-testing of potential disruptions supports contingency planning and operational resilience

Macroeconomic

uncertainty

Link to strategic priorities:

Macroeconomic volatility, including

inflation, interest rate shifts and

exchange rate fluctuations, could

impact our ability to deliver consistent

and predictable growth and strategic

objectives.

• Global and local macroeconomic indicators are monitored to assess potential impacts on supply, pricing and demand

• Interest rate and FX exposures are centrally managed by Group Treasury under established policies and controls

• Commodity price volatility is monitored and mitigated through sourcing strategies and cross-Group communication

• Pricing, revenue growth management and cost actions are deployed to protect margins where appropriate

• Portfolio resilience is assessed regularly to ensure strategic responses to changing economic conditions

Link to strategic priorities

Portfolio value creation Product superiority Winning in market Fixed cost optimisation

Strategic

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Risk Management continued

Risk Risk impact How we are managing the risk

Product integrity

Link to strategic priorities:

Our broad portfolio includes products

that are ingested, inhaled or have

direct skin contact. Some may contain

hazardous chemicals.

Failure to meet quality, safety and

regulatory standards could lead to

potential harm to consumers, product

recalls and legal liabilities and impact

consumer confidence in our brands.

• The Group Compliance Committee provides oversight of quality, safety and regulatory risks, ensuring timely escalation

of material issues

• A structured hierarchy of Group policies, processes and standard operating procedures that ensures consistent

regulatory and safety compliance

• The Regulatory Intelligence, Ingredient Steering and Consumer Safety teams monitor emerging requirements, assess

impacts and drive appropriate action proactively

• A robust Quality Management System drives risk-based decision making from product design through to market release

• An adverse and critical events process and dedicated Consumer Care and Vigilance teams investigate adverse events

and manage product quality issues to protect consumers and brands

Legal and compliance

Link to strategic priorities:

Reckitt operates in various countries

with diverse regulatory environments.

Failure to meet legal, regulatory and

corporate responsibility commitments

could impact our reputation with our

consumers, investors and

stakeholders. Additionally, operating in

litigious environments increases

litigation risk, potentially leading to

significant legal costs, settlements

and reputational damage.

• The GEC Compliance Committee oversees ethics and compliance risks, ensuring timely escalation and a coordinated

response

• Our Ethics and Compliance Programme includes clear policies, annual training, risk assessments, a Speak Up hotline and

third-party due diligence

• In-market Legal and Compliance teams, supported by external experts, advise on evolving regulatory requirements

• Significant disputes and litigation are overseen by senior legal leadership with General Counsel oversight of

materialmatters

• Periodic monitoring and targeted interventions reinforce ethical conduct and compliance across the Group

ESG transition

Link to strategic priorities:

Changes in the fiscal and regulatory

environment, shifting stakeholder

expectations emerging from the

transition to a more sustainable, net

zero economy and increasing physical

risks create significant uncertainty for

Reckitt.

Failure to meet regulatory, consumer

or ethical expectations on

environmental impact, including

climate change, could impact our

brand and future trading performance,

operational resilience and other

business costs.

• Group sustainability targets are measurable and time bound, with progress governed by a cross-functional

steeringcommittee

• Category and function teams execute programmes to meet ESG commitments, supported by the Group

Sustainabilityfunction

• Tools such as the Sustainability Innovation Calculator quantify improvements in carbon, water, plastics, packaging

andextended producer responsibility (EPR) risk

• All sites complete self assessments against Group Environment Standards, with corrective actions tracked and

supported centrally

• Carbon footprint modelling identifies targeted decarbonisation opportunities and informs long-term transition planning

Compliance and responsibility

Link to strategic priorities

Portfolio value creation Product superiority Winning in market Fixed cost optimisation

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Our Viability Statement

The Board’s viability review is

based on the Group’s strategy, its

long-term financial plan and its

principal risks.

The Group’s strategic financial plan, which is

approved by the Board on an annual basis and

covers a period of three years, is used as the

base case for the assessment of viability. The

three-year forecast period corresponds with

the time horizon across which management

makes strategic decisions on allocation of

resources and covers the introduction to

market of the new product pipeline as well

asa large part of the Group’s debt repayment

profile. The Board is of the view that

conducting the assessment across a three-

year period gives a high level of confidence

inthe conclusion reached over the viability

ofthe Group.

The financial forecast is based on a number

ofkey assumptions aligned to the Group’s

growth strategy, planned capital spending

and capital allocation policy. The forecast

takes into account the sale of Essential Home

in December 2025 and the related special

dividend paid out in February 2026. The

assessment of viability is focused on the

Group’s cash flow and the interest cover

ratios in relevant financial covenants. The

assessment takes into account the Group’s

currently available banking facilities and does

not assume the raising of any additional debt

or equity finance.

If Reckitt performs in line with the base case

forecasts, it will have sufficient funds to trade,

settle its liabilities as they fall due, remain

compliant with financial covenants and remain

viable. Moreover, the Group has access to

external debt markets on account of its credit

rating together with a well-diversified

supplier network, customer base and product

range, and geographical activities with a

strong innovation pipeline and dividend cover.

Risks incorporated in the assessment

To further test the robustness of the base

case forecast, additional analyses were

prepared to consider the viability of the

Business in the event of adverse unexpected

circumstances. Such adverse circumstances

were modelled primarily upon the

crystallisation of the Group’s principal risks

(see pages 49-51, including how we are

managing the risk). Principal risks have the

potential to create adverse circumstances for

the Group and can occur individually or in

combination with each other. The assessment

of viability considered the implications of

crystallisation of each principal risk, and

estimated the impact on interest cover ratios

and headroom over available borrowing

facilities.

These principal risks were aggregated to

create two scenarios that model plausible

downside scenarios of increasing severity

based on: (i) crystallisation of principal risks

including cyber and litigation deemed to have

the most significant potential impact on

viability; and (ii) crystallisation of all principal

risks and the impact of adverse movements

inforeign exchange and interest rates.

TheBoard has also considered the potential

impact of changes to environmental factors,

which may affect the business model and

performance in the future, as set out in the

Climate-Related Financial Disclosures on

pages 198-202.

The analysis indicated that even with

unexpected events occurring immediately

and in combination, the Group would still have

sufficient funds to trade, settle its liabilities

asthey fall due and remain compliant with

financial covenants.

The Board has further considered the

occurrence of a Black Swan event: an event of

greater adversity than those modelled above,

with sufficient potential impact to risk the

future of Reckitt as a strong and independent

business operating in its chosen markets. The

occurrence of a major issue could result in

significant reputational impact, a substantial

share price fall, significant loss of consumer

confidence and the inability to retain and

recruit talent. Such an event could have

animpact on the viability of the Business.

Onthe basis of a comprehensive set of

mitigating controls in place across the

Business, considering the unknown nature

ofaBlack Swan event and that its occurrence

is considered highly unlikely, it has not been

included in the viability review.

Conclusions

The Board believes that the Group is well-

positioned to manage its principal risks

successfully. The Board’s belief is based on

consideration of the historic resilience of

Reckitt and has taken account of its current

position and prospects, the actions taken to

manage the Group’s debt profile, risk appetite

and the principal risks facing the Business in

unexpected and adverse circumstances.

Mitigating actions, should they be required,

are all within management’s control and could

include reduced capital expenditure or

temporary suspension of dividend payments.

Viability Statement

As a result of the viability review, the Board

has a reasonable expectation that the Group

will be able to continue in operation and meet

its liabilities as they fall due over the three-

year period covered in the viability review.

The Strategic Report, as set out on pages

1-52, has been approved by the Board.

Catheryn O’Rourke

Company Secretary

Reckitt Benckiser Group plc

4 March 2026

ASSESSING THE GROUP’S LONGER-TERM VIABILITY

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Chair’s Introduction to Governance

During the year, I had the opportunity to meet

teams and visit sites in Milan (Italy),

Nottingham (UK), our office in Slough (UK) and

New Jersey (North America). More details

regarding these visits are set out in the Board

Activities section on pages 62-63.

Board changes

We welcomed a number of new Independent

Non-Executive Directors during the year, with

Stefan Oschmann and Mahesh Madhavan

joining the Board on 1 January 2025 and

Patricia Verduin joining on 9 June 2025.

As previously announced, Mary Harris stepped

down from the Board and as Chair of the

Remuneration Committee at the Annual

General Meeting (AGM) on 8 May 2025 and Dr

Mehmood Khan stepped down from the

Board and as Chair of the Compliance

Committee on 24 July 2025. I would like to

thank them both for their significant

contributions to the Board over the years.

Fiona Dawson took over as Chair of the

Remuneration Committee and Patricia Verduin

became Chair of the Compliance Committee.

Margherita Della Valle and Mahesh Madhavan

have notified the Board that they will not be

standing for re-election at the upcoming

AGM. I would like to thank them both for their

service to the Board.

Annual General Meeting

We look forward to welcoming shareholders

to our AGM on 21 May 2026. Further details can

be found in our Notice of Meeting.

I would like to thank the Board, management

and all the Reckitt employees for their

continued commitment to the Business.

Sir Jeremy Darroch

Chair

Reckitt Benckiser Group plc

4 March 2026

Dear shareholder

On behalf of the Board, I am pleased to

present Reckitt’s Corporate Governance

Report forthe financial year ended

31December 2025.

The Board is responsible for the effective

leadership of the Group and for promoting

itslong-term sustainable success. As shared

inmy Chair’s Statement on pages 2-3, Reckitt

has continued to deliver on the strategy and

transformation plan which was shared in July

2024 and we completed the divestment of the

Essential Home business on 31 December 2025.

As announced on 7 January 2026, following the

divestment we published a circular setting out

the special dividend and share consolidation

proposal. A General Meeting was held on

27January 2026, where all resolutions passed

and we paid a special dividend of 235 pence

per ordinary share to our shareholders on

20February 2026.

The Board remains committed to supporting

the management team in delivering the

ambitions for Core Reckitt and enabling

sustainable, long-term profitable growth.

The Board provides leadership by overseeing

the implementation of the strategy by

management and by monitoring our culture.

The Board ensures there are appropriate

processes in place to manage risk and

monitors the Company’s financial and

operational performance against objectives.

Board effectiveness and governance

This year, we conducted an externally

facilitated Board performance review which

was undertaken by Clare Chalmers. The

process for the evaluation, along with findings

and action plans, is set out on page 64.

Stakeholder engagement

The Board recognises the importance of

understanding and considering the views of

our stakeholders during decision making and

more details in relation to wider stakeholder

engagement can be found on pages 65-68.

FOCUSED AND

DELIVERING

The Board provides leadership by overseeing

management’s implementation of the strategy

andbymonitoring our culture.

Sir Jeremy Darroch

Chair

Further details can be found on pages

54-56 Board of Directors and Group Executive Committee

57-61 Compliance with the Code and Governance Framework

62-64 Details of the Board’s activities this year and the Board performance review

65-68 How the Board engages with our stakeholders

69-111 Committee reports

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Board Leadership

OUR BOARD

Committee key

Chair

Audit

Compliance

Nomination

Remuneration

Full biography details for the Group Executive Committee members are available on our website:

reckitt.com/our-company/our-leadership

Shannon Eisenhardt (51)

Chief Financial Officer

Nationality American

Appointment Appointed as

Chief Financial Officer (CFO)

on31 March 2024.

Current external appointments

• None

Prior experience

• CFO of Nike North America

• CFO of Nike Emerging

Markets

• CFO of Nike Consumer,

Marketplace & Brand

• Held a range of finance roles

at Procter & Gamble working

at corporate, country and

regional levels

Sir Jeremy Darroch (63)

Chair

Nationality British

Appointment Appointed as

Chair of the Board and the

Nomination Committee in

May2024.

Current external appointments

• Non-Executive Director of

The Walt Disney Company

• Chair of the National

Oceanography Centre

• WWF Ambassador

• Executive Advisor for KKR

Prior experience

• Executive Chair and CEO

ofSky

• Group Finance Director

ofDSG International plc

• Various roles at Procter

&Gamble

• SID and Chair of the Audit

Committee of Burberry

Groupplc

• Non-Executive Director

andChair of the Audit

Committee of Marks and

Spencer Group plc

Kris Licht (49)

Chief Executive Officer

Nationality Danish

Appointment Appointed as

Chief Executive Officer (CEO)

on 1 October 2023.

Current external appointments

• None

Prior experience

• President of Reckitt’s Health

business and Chief Customer

Officer

• Held a number of senior

operational and strategic

roles at PepsiCo

• Partner at McKinsey & Co,

with a focus on consumer,

health and retail practices

Andrew Bonfield (63)

Senior Independent

Non-Executive Director

Nationality British

Appointment Appointed as a

Non-Executive Director in July

2018 and Senior Independent

Director in May 2024.

Current external appointments

• CFO of Caterpillar Inc.

Prior experience

• Group CFO of National

Gridplc

• CFO of Cadbury plc

• Executive Vice President and

CFO at Bristol Myers Squibb

Fiona Dawson, CBE (59)

Non-Executive Director

Nationality Irish

Appointment Appointed

asNon-Executive Director

inJune 2024.

Current external appointments

• Senior Independent

Non-Executive Director of

Marks & Spencer Group plc

• Non-Executive Director of

LEGO A/S

• Chair Designate of Kerry

Group PLC

Prior experience

• Spent 30 years at Mars Inc.,

joining as a graduate and

rising through various

management roles up to

Global President Food, Drinks

and Multisales

Patricia Verduin (66)

Non-Executive Director

Nationality American

Appointment Appointed as

aNon-Executive Director in

June 2025.

Current external appointments

• Non-Executive Director

ofAvient

• Non-Executive Director

ofFMC Corporation

• Non-Executive Director

ofIngredion

Prior experience

• Held a number of senior roles

across R&D and technology,

including Chief Technology

Officer at Colgate Palmolive

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Board Leadership continued

Full biography details for the Group Executive Committee members are available on our website:

reckitt.com/our-company/our-leadership

Committee key

Chair

Audit

Compliance

Nomination

Remuneration

Director departures during the year

Mary Harris Non-Executive Director from February 2015 and Chair of

the Remuneration Committee from May 2024 until she

retired from the Board in May 2025.

Mehmood Khan Non-Executive Director from July 2018 and Chair of the

Compliance Committee from June 2024 until he

resigned from the Board in July 2025.

Margherita Della Valle (60)

Non-Executive Director

Nationality Italian/British

Appointment Appointed

asaNon-Executive Director

inJuly 2020.

Current external appointments

• CEO of Vodafone Group Plc

• Non-Executive Director of

Bocconi University

Prior experience

• Held a number of senior

finance roles including CFO

ofVodafone Group Plc

Elane Stock (61)

Non-Executive Director

Nationality American

Appointment Appointed as

aNon-Executive Director in

September 2018 and as

Designated NED for Engagement

with the Company’s Workforce

in May 2024.

Current external appointments

• Director of Fomento

Economico Mexicano SAB

deCV

Prior experience

• CEO of ServiceMaster Brands

• Director of Yum Brands!

• Director of Equifax

• Various roles, including Group

President at Kimberly-Clark

International

Marybeth Hays (57)

Non-Executive Director

Nationality American

Appointment Appointed as

aNon-Executive Director in

February 2024.

Current external appointments

• Non-Executive Director of

Decowraps

• Non-Executive Director of

Leapfrog Brands

• Non-Executive Director of

AMS Retail Solutions

Prior experience

• Senior roles, including

Executive Vice President of

Consumables and Health &

Wellness at Walmart US and

Chief Merchandising,

Marketing and Supply Chain

Officer at Walmart China

• Senior roles, including Vice

President of Marketing, at

HanesBrands, Inc.

Stefan Oschmann (68)

Non-Executive Director

Nationality German

Appointment Appointed as

Non-Executive Director in

January 2025.

Current external appointments

• Non-Executive Director

ofStamm

• Non-Executive Director

ofSpringer Nature

• Chair of AiCuris Anti-Infective

Cures

Prior experience

• CEO of Merck & KGaA and

Chair of its management

board

• Various senior management

roles at Merck & Co. (MSD)

Mahesh Madhavan (63)

Non-Executive Director

Nationality Indian

Appointment Appointed as

Non-Executive Director in

January 2025.

Current external appointments

• Chief Executive Officer of

Bacardi Limited

• Non-Executive Director of

Capri Holdings

Prior experience

• Joined Bacardi in 1997 and

held a number of regional

leadership roles before being

promoted to CEO in 2017

Tamara Ingram, OBE (65)

Non-Executive Director

Nationality British

Appointment Appointed

asaNon-Executive Director

inFebruary 2023.

Current external appointments

• Non-Executive Director of

Marks and Spencer Group plc

• Non-Executive Director

ofIntertek Group plc

• Non-Executive Director

ofMarsh & McLennan

Companies, Inc.

• Deputy Chair of Ofcom

Prior experience

• Global Chair of Wunderman

Thompson and held a number

of leadership roles at WPP plc

• Chair and CEO of UK

advertising group Grey

• CEO of McCann Worldgroup

• CEO of Saatchi & Saatchi

inLondon

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Senior Leadership

GROUP EXECUTIVE COMMITTEE

Full biography details for the Group Executive

Committee members can be found at

reckitt.com/our-company/our-leadership

Ranjay Radhakrishnan (55)

Chief Human

ResourcesOfficer

Nationality British

Ryan Dullea (48)

Chief Category

GrowthOfficer

Nationality American

Catheryn O’Rourke (53)

General Counsel &

CompanySecretary

Nationality American

Harald Emberger (60)

Chief Supply Officer

Nationality German

Eric Gilliot (59)

President Europe

Nationality French

Jérôme Lemaire (52)

President North America

Nationality French

Nitish Kapoor (57)

President Emerging

Markets

Nationality Indian

Sheila Redzepi (47)

Chief Communications and

Corporate Affairs Officer

Nationality Danish

Susan Sholtis (59)

President Nutrition

Nationality American

Angela Naef, PhD (50)

Chief R&D Officer

Nationality American

Shannon Eisenhardt (51)

Chief Financial Officer

Nationality American

Kris Licht (49)

Chief Executive Officer

Nationality Danish

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Corporate Governance Report

COMPLIANCE WITH THE CODE

Compliance with the UK Corporate Governance Code

For the year ended 31 December 2025, the

Company complied with all the principles and

provisions of the UK Corporate Governance

Code 2024 (the Code) in force at the

publication of this Annual Report and the

Disclosure Guidance and Transparency Rules

requirements to provide a corporate

governance statement.

Pages 57-64 of this report form our Corporate

Governance Report. Details of how the

principles of the Code have been applied can

be found throughout this report, the Strategic

Report and the Committee reports as set out

in the table.

The Board continues to receive updates in

relation to those changes to the Code that are

not yet in force, including provision 29, and

intends to be compliant within the timeframes

indicated. The Board has carried out an

evaluation of the reporting requirement

changes.

How we comply with the Code

Pages

1. Board leadership and company purpose

Promoting the long-term sustainable success of the Company 1-52

Purpose, values and culture 8-9

Strategic priorities and objectives 7-23

Stakeholder engagement 65-68

Workforce engagement 9, 62-63

2. Division of responsibilities

Role of Chair, CEO, Non-Executive Directors and Company Secretary 59

Board composition 54-55

3. Composition, succession and evaluation

Appointments to the Board and succession planning 69-73

Balanced Board 54-55, 71-72

Board performance 64

4. Audit, risk and internal control

Audit Committee Report 74-81

Principal risks and uncertainties 49-51

5. Remuneration

Directors’ Remuneration Committee Report 84-111

Reckitt Board

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Corporate Governance Report continued

The Board is responsible for the effective

leadership of the Group and for promoting its

long-term sustainable success, generating

value for shareholders and contributing to

wider society, while focusing on governance

with the highest regard to the principles of

the Code.

The Board provides leadership by monitoring

and assessing our culture, including how it has

been embedded, and overseeing

implementation by management. All Directors

must act with integrity, lead by example and

promote the Company’s culture and values.

The Board also ensures that there are

appropriate processes in place to manage

risk, including the Company’s risk appetite,

and monitors financial and operational

performance against objectives and internal

control procedures.

The Board consists of a balance of Executive

and Non-Executive Directors who together

have collective accountability to Reckitt’s

shareholders, as well as responsibility for the

overriding strategic, financial and operational

objectives and direction of Reckitt.

The Board manages the overall leadership

ofthe Group with reference to its formal

Schedule of Matters Reserved for the Board.

This schedule is reviewed annually, with the

last review undertaken in November 2025,

andbroadly covers:

• matters which are legally required to be

considered or decided by the Board, such

as approval of Reckitt’s Annual Report and

Financial Statements, declaration of

dividends and appointment of new

Directors;

• matters recommended by the Code to be

considered by the Board, such as terms of

reference for the Board and its Committees,

review of internal controls and

riskmanagement;

• compliance with regulations governing UK

publicly listed companies, such as the UK

Listing Rules, the Disclosure Guidance and

Transparency Rules and the Prospectus

Rules; and

• matters relating to developments in, or

changes to, the Group’s strategic direction,

or material corporate or financial

transactions.

The full Schedule of Matters Reserved for the

Board is available on the Reckitt website at

reckitt.com/investors/corporate-governance.

Risk management and internal controls

The Board has overall responsibility for internal

controls and risk management along with

compliance with the Code and the Financial

Reporting Council’s (FRC) Guidance on Risk

Management, Internal Control and Related

Financial and Business Reporting. The sectors

and environment within which Reckitt

operates are dynamic, fast moving and,

insome areas, highly regulated, so controls

are kept under review.

On an ongoing basis, the Board reviews

theeffectiveness of the Group’s risk

management and internal control system,

including through monitoring reports from

management on itsassessment of risks and

internal control systems, assurance received

from management regarding compliance with

relevant policies and assurance received on

the effectiveness of the Company’s internal

control environment. The Board is also

monitoring the framework for compliance

with provision 29 of the Code ahead of the

first report against this criterion in 2027. In

addition, the Board receives updates from

theAudit Committee on internal audit, the

External Auditor, and the Company’s response

to incidents and threats, including those

relating to cyber security and safety.

The Audit Committee, on behalf of the Board,

oversees the Group’s overall risk management

framework and the effectiveness of internal

controls, and monitors Reckitt’s compliance

with the requirements of the Code in respect

of risk management and internal controls. The

Audit Committee monitored the key elements

of the Group’s internal controls framework

throughout the year and conducted an annual

review of the effectiveness of Reckitt’s

system of risk management and internal

control in respect of 2025, which covered

allmaterial controls, including financial,

operational and compliance controls. The

Audit Committee’s annual review was

supported by a report prepared by the

internal audit function on the Group’s risk

management and internal controls.

The Audit Committee Report can be found

onpages 74-81

Principal risks and risk appetite

As part of the risk management process, the

Board regularly evaluates the risks related

toachieving the Group’s objectives and the

likelihood of such risks materialising and

impacting the ability of the Group to cope

with the circumstances should they occur.

In doing so, the Board inherently considers

therisk appetite through the actions taken,

controls implemented and processes followed

to reduce the likelihood of risk events taking

place, mitigating the potential impact and

ensuring that the cost of doing so is

proportionate to the benefit gained. Each

principal and emerging risk is overseen by

theBoard or a designated Committee of

theBoard and is subject to formal deep

divereviews as appropriate at Board and

GECmeetings.

During the year, the Directors undertook

arobust assessment of the principal and

emerging risks facing the Group, including

those that could threaten the business model,

future performance, solvency and liquidity.

The Group’s principal and emerging risks and

mitigating actions are detailed on pages 48-51

Climate-related risks and environmental,

social and governance (ESG) matters

The Board oversees, considers and reviews

the Group’s ESG strategy and has oversight of

the climate-related risks and opportunities.

As part of the Board’s annual cycle of reviews,

the principal and emerging risks related to

sustainability were considered. The Board’s

focus included both ESG performance and

regulatory developments. More information on

our Sustainability Ambitions and performance

can be found on page 42. The Viability

Statement on page 52 provides further

disclosure on climate and ESG-related risk

matters. Our climate-related financial

disclosures can be found on pages 198-202.

BOARD ROLES AND RESPONSIBILITIES

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Corporate Governance Report continued

Board roles and responsibilities

To ensure the Board performs effectively,

there is a clear division of responsibilities (set

out in writing and agreed by the Board)

between the leadership of the Board and

theexecutive leadership of the Business.

These key Board roles are:

• The Chair

• The Chief Executive Officer

• The Senior Independent Director

• The Chief Financial Officer

• Non-Executive Directors

• The Designated Non-Executive Director for

Engagement with the Company’s

Workforce

• The Company Secretary

A full description of the above roles and

responsibilities can be found on our website

reckitt.com/investors/corporate-governance

Managing time commitment and

‘overboarding’

On appointment, Non-Executive Directors are

made aware of the need to, and are required

to confirm that they will, allocate sufficient

time to their role to discharge their

responsibilities effectively. They are also

required to seek agreement from the Chair

before taking on additional commitments to

ensure the additional demands will not impact

a Director’s ability to perform their role with

the Company. Directors are also required to

declare any actual or potential conflicts of

interest. Non-Executive Directors are engaged

under the terms of a letter of appointment.

Initial terms of appointment are for three

years with three months’ notice, with all

Directors standing for election or re-election

at every AGM.

The Board has reviewed the length of service

of each Director and considers that each

Non-Executive Director standing for re-election

or election at this year’s AGM isindependent.

The Board is confident that each Director

individually has the expertise and relevant

experience required to perform the role of a

Director of a listed company and to contribute

effectively to the Board and Committees

towhich they are appointed. The Company

recognises the developmental advantages

ofan external non-executive role on a

non-competitor board and Executive

Directors are permitted to seek such a role,

provided that they do not take on more than

one non-executive directorship in, nor

become the Chair of, a FTSE 100 company.

Neither Kris Licht nor Shannon Eisenhardt

holdany external directorships at the date

ofthis report.

Board support

The General Counsel & Company Secretary is

responsible for organising Board meetings, as

well as collating any papers for the Board to

review and consider. Board and Committee

papers are accessible to all Directors through

a secure and confidential electronic

document storage facility. This facility is

maintained by Reckitt’s secretariat function

and additionally holds other information which

the Chair, the CEO or the General Counsel &

Company Secretary may deem useful to the

Directors, such as press releases and

pertinent company information.

All Directors have individual access to advice

from the General Counsel & Company

Secretary and a procedure exists for Directors

to take independent professional advice at

the Company’s expense in furtherance of

their duties.

Our people and culture

By deepening our distinctive, values-led

culture, we have enabled our people, who are

the heart of Reckitt, to operate with clarity,

accountability and a relentless focus

ondelivery.

Reckitt has a long track record of building

trusted Powerbrands that lead their

categories and deliver sustained value. Our

people and culture provide the solid

foundation to this, bringing purpose, expertise

and agility to everything we do. What

distinguishes Reckitt is not only the strength

of our brands, but the culture that actively

powers their success. Our shared behaviours

and expectations shape how we work every

day, enabling our people to make faster,

better decisions that translate directly into

growth. It is a performance-oriented culture

grounded in accountability; and it is how we

focus and deliver consistently, at pace and

with integrity.

More information on our people and culture can

be found on pages 8-9 of the Strategic Report.

How the Board monitors culture

A key focus of the Board is to monitor and

support culture, and ensure alignment across

our purpose, values, Compass and behaviours.

Our culture and values at Reckitt are defined

by the Board and the GEC. We are evolving a

vibrant, inclusive and collaborative culture to

deliver on our purpose.

By embedding inclusivity, all colleagues

shouldfeel free to participate fully, bring their

authentic selves to work and realise their full

potentials. Board members are given the

opportunity to meet with employees and

theBoard received feedback from the

engagement sessions held throughout

theyear.

Employee Resource Groups are employee

networks that aim to raise the visibility of

underrepresented communities. They provide

a space for colleagues to connect and

support each other and are also represented

on the Global Inclusion Board. Pat Verduin

shared her insights with employees on

Disability Day. More details can be found

within the Board Activities section on pages

62-63.

A quarterly global livestreaming broadcast is

available to all employees and shares our

financial results, where employees are invited

to ask questions and interact directly with the

CEO and CFO.

Regular interactions with employees help the

Board monitor culture and examples of these

are detailed on pages 62-63 within the Board

Activities section.

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Our Board

The Board is collectively responsible for the overall leadership of the Group and for promoting its long-term sustainable success while focusing on its strategic direction, purpose, values and governance, with the highest

regard to the principles of the Code. There is a clear division of responsibilities between the Board, its Committees and the Management Committees.

Shareholders

Our shareholders are the ultimate owners of the Company and play an important role in the governance structure. Further information on our engagement with shareholders can be found on pages 21, 23 and 67.

Responsible for making recommendations to

the Board on suitable candidates for

appointment to the Board, its Committees and

senior management, and for regularly reviewing

and refreshing their composition to ensure that

they comprise a diverse group of individuals

with the necessary skills, knowledge and

experience to effectively discharge their

responsibilities.

Nomination Committee

Chaired by Sir Jeremy Darroch

Responsible for monitoring the integrity of

Reckitt’s Financial Statements and ensuring

effective functioning of internal audit, internal

controls and risk management. The Committee

is also responsible for managing the Company’s

relationship with its External Auditor.

Audit Committee

Chaired by Andrew Bonfield

Responsible for assisting the Board in fulfilling its

oversight responsibility by ensuring that the

Remuneration Policy and practices are

implemented fairly and responsibly, are linked to

corporate and individual performance and take

account of the generally accepted principles of

good governance. The Committee is responsible

for determining the remuneration for the Chair,

Executive Directors and senior management.

Remuneration Committee

Chaired by Fiona Dawson

Responsible for supporting the Board in respect

of the Group’s risks related to legal compliance

and ethics, product quality, consumer safety and

regulatory matters.

Compliance Committee

Chaired by Pat Verduin

Disclosure Committee

Chaired by CFO

Responsible for ensuring accuracy and

timeliness of disclosure of financial and

other public announcements.

Group Executive Committee

Chaired by CEO

Responsible for overseeing Reckitt’s management and ensuring collaboration between

functions and in-market operations. The GEC recommends and implements the strategy

and related budget as approved by the Board. It drives business and cultural

transformation, reviews business performance and approves business development plans

and major investments. It plays a critical role in talent management and development and

oversees the integration of sustainability within business operations.

Group Compliance Committee

Chaired by CEO

Provides oversight of risk across the organisation and makes

recommendations to the Compliance Committee for actions to be taken

in respect of the Group’s legal compliance and ethics, product quality,

consumer safety and regulatory matters, including compliance

strategies, policies, programmes and key activities.

Read more on page 69 Read more on page 82Read more on page 84Read more on page 74

GOVERNANCE FRAMEWORK

Corporate Governance Report continued

The Company has a clear and effective governance structure, which allows the Board, its

Committees and the executive team to make decisions effectively. The Board has established four

Committees to assist in the execution of its responsibilities. Each Committee operates under

Board-approved terms of reference which are reviewed regularly, with the last review taking place

in November 2025. There are also three supporting Management Committees: the Disclosure

Committee, the Group Executive Committee (GEC) and the Group Compliance Committee (GCC).

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Board Audit

Committee

Compliance

Committee

Nomination

Committee

Remuneration

Committee

5 4 4 2 3

meetings meetings meetings meetings meetings

Sir Jeremy Darroch

5/5 2/2 3/3

Andrew Bonfield

5/5 4/4 2/2

Elane Stock

5/5 4/4

Fiona Dawson

5/5 3/3

Kris Licht

5/5 4/4

Mahesh Madhavan

3/5 2/3

Margherita Della Valle

4/5 3/4 2/2

Marybeth Hays

5/5 4/4 4/4

Pat Verduin

3/3 2/2

Shannon Eisenhardt

5/5

Stefan Oschmann

4/5 3/4 1/1

Tamara Ingram

5/5 3/4

Mary Harris

2/2 1/1

Mehmood Khan

3/3 3/3

Where a Director is unavoidably absent from a Board or Committee meeting, they still receive and review the papers

forthe meeting and may provide verbal or written input ahead of the meeting, usually through the Chair of the Board

orthe Chair of the relevant Committee, so that their views are considered at the meeting.

1 Pat Verduin: Non-Executive Director from June 2025

2 Stefan Oschmann: Joined the Remuneration Committee in July 2025

3 Mary Harris: Non-Executive Director from February 2015 until she retired from the Board in May 2025

4 Mehmood Khan: Non-Executive Director from July 2018 until he resigned from the Board in July 2025

Corporate Governance Report continued

How we manage conflicts of interest

Directors have a duty to avoid interests, direct

or indirect, which might conflict with the

interests of the Group. Under the terms of our

Articles, such conflicts can be authorised by

the Board. Procedures are in place to manage

and, where appropriate, approve such

conflicts. Any authorisations granted by the

Board are recorded by the General Counsel &

Company Secretary in a Register of Conflicts,

together with the date on which the conflict

was authorised. Any conflicts authorised

during the year are reviewed annually by the

Nomination Committee and the Board. In

addition, each Director certifies on an annual

basis that the information contained in the

The Company indemnifies the Directors and

Officers of the Company and any Group

subsidiary to the extent permitted by law in

respect of the legal defence costs for claims

against them and third-party liabilities. The

indemnity would not provide cover for a

Director or Officer if that individual was found

to have acted fraudulently or dishonestly.

Directors’ and Officers’ liability insurance

cover was maintained throughout the year at

the Company’s expense.

How Board meetings are structured

Board meetings are conducted in an open

atmosphere conducive to challenge and

debate. Agendas are tailored to the

requirements of the Business and agreed in

advance by the Chair and CEO with the

support of the General Counsel & Company

Secretary.

The Board receives operating and financial

reports from the CEO and CFO on strategic

and business developments, as well as

financial performance and forecasts at each

meeting. Specific presentations are also made

by GEC and senior leadership members on

material matters to the Group. In addition, the

Chairs of the Audit, Compliance, Nomination

and Remuneration Committees update the

Board on the proceedings of those meetings,

including key topics and areas of concern.

At the conclusion of every scheduled Board

meeting, the Chair holds a session with the

other Non-Executive Directors, without the

Executive Directors present, providing further

opportunity for the Non-Executive Directors

to assess the performance of management

and individual Executive Directors and help

drive future agenda items.

The Board uses its meetings as a way of

discharging its responsibilities, including as set

out in section 172 of the Companies Act 2006,

to promote the success of the Company for

the benefit of its members as a whole.

Further information can be found on page 68.

Board and Committee meeting

attendance

In 2025, there were five scheduled Board

meetings.

The table opposite sets out the attendance

by Directors at scheduled Board and

Committee meetings that each Director was

eligible to attend. Directors who were not

members of individual Board Committees

were also invited to attend one or more

meetings of those Committees during

theyear.

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Corporate Governance Report continued

2025 BOARD

ACTIVITIES

Breakdown of Board activities

Meeting agendas are agreed in advance

with the Chair, CEO and General Counsel &

Company Secretary and combine a balance

of regular standing items and key areas of

focus, including strategy and transformation

updates, finance and performance, legal

and litigation updates, risk management,

people, deep dives, capital allocation,

sustainability, updates from the key areas

ofthe Business, and governance and

Committee updates.

A summary of the key topics covered in

2025 and the outcomes and decisions

areset out in the following pages.

When discussing key topics, undertaking

site or factory visits, and engaging with

ourcolleagues, the Board considered the

interests of our stakeholders including:

ourpeople and culture, our consumers

andcustomers, our supplies and partners,

our investors and society (including

communities, governments, NGOs,

industryand academia).

February

Board meeting

Approvals: Modern Slavery

and Human Trafficking

Statement

2024 full year results

announcement and Annual

Report and Accounts 2024

2025 Notice of AGM

LTIP and Sharesave plan

rules(approved in principle)

subject to shareholder

approval at the AGM on

8May 2025

Discussions:

Update on the divestment of

the Essential Home business

Investment in a new

headquarters and Research &

Development (R&D) Centre in

New Jersey

March

Announcements: 2024 full

year results

Publication of the Annual

Report and Accounts 2024

Investor roadshows carried

out by the CEO and CFO

May

AGM

Board meeting

Approvals: All resolutions presented

to shareholders at the in-person

AGM were approved

The continuation of the share

buyback programme

Revised bond issuance and new

bank facilities

Stakeholder engagement: Board

visit to the R&D Science & Innovation

Centre in Hull, UK. Further details

below left

Discussion: Review of the

Economic Crime and Corporate

Transparency Act (ECCTA)

implementation

Update on people engagement

activities

Deep dives:

The ESG and sustainability agenda

IT and cyber security update

An external presentation on the UK

and US geopolitical environments

June

Stakeholder engagement:

Chair visit to Italy. Further

details below

Approval: Decision on

External Auditor appointment

at the end of KPMG’s tenure,

following a tender process

by the Audit Committee

Chair visit to Milan

inJune

Sir Jeremy spent time at

the Milan office meeting

with the team, receiving

presentations on the

strategy for Italy and

holding an engagement

session with some of the

local team. He also

visited local stores to

see Reckitt products on

shelves.

2025

Board visit to Hull

The Board visited the

R&D Science &

Innovation Centre in Hull,

UK where members

were given a tour, spent

time with employees

and saw presentations

covering a number of

activities at the site

including in the Heritage

Centre.

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

2026

July

Board meeting

Approvals:

Half year results and interim

dividend

Status of principal and

emerging risks at half year

Announcements:

Half year results and interim

dividend

Essential Home divestment

Discussions:

External Board and

Committee performance

review conducted by Clare

Chalmers

Presentation on financial

market dynamics from

external advisors

Cyber security update

Deep dives:

Mead Johnson Nutrition

business update by the

President of Mead Johnson

Nutrition

Emerging Markets

performance and

opportunities update by the

President of Emerging

Markets

September

Overseas strategy Board

meeting

Discussions: Strategy

updates from the Chief

Category Growth Officer,

Chief Communication and

Corporate Affairs Officer,

Chief Supply Officer, Chief

R&D Officer and Chief HR

Officer

Deep dive: Artificial

intelligence: the evolution of

AI, the future of work and

how AI is being used now

and plans for the future

October

Stakeholder engagement:

Chair visit to the Nottingham,

UK factory to meet the team.

Further details below

November

Board meeting

Stakeholder engagement:

Board and employee

engagement meetings held

atour office in Slough, UK.

Further details below right

Discussions:

Board performance review

looking at the actions from

2025, and identifying areas

for improvement and

recommended actions

for2026

People engagement update

including Let’s Engage

employee survey results and

Board engagement feedback

Review of principal and

emerging risks

An external presentation on

the implementation of

ECCTA, and an update on

Provision 29 of the Code

Approvals: 2026 financial

plan and three-year financial

plan

Schedule of Matters

Reserved for the Board, roles

of Chair, CEO and SID,

Committee terms of

reference, Directors’ conflicts

of interest and compliance

with the Code

Group Treasury Policy

Share consolidation and special

dividend (approved in principle)

subject to shareholder approval

at the General Meeting held on

27 January 2026

Deep dive: ESG and

sustainability

December

Stakeholder engagement:

Chair visit to the North

America offices in New

Jersey. Further details below

NED Pat Verduin shared her

perspective on disability and

inclusion both at Reckitt and

more broadly for Disability

Day as part of a regular

employee engagement

series

Approval: Completion of the

Essential Home divestment

Chair visit to

Nottingham factory in

October

Sir Jeremy visited the

Nottingham site in

October and received a

tour of the factory and

laboratory, including

spending time with the

Strepsils team, attending

a lunch with future

leaders, presenting a

townhall and finding out

more about the supply

chain and value creation

plans.

Board engagement

atour Slough office

Several sessions with the

Board Directors were

held with a select group

of employees from

across the Business on

topics including

category growth and

sustainability, excellence

in execution,

transformation and the

next generation of

Reckitt leaders. The

Board found it insightful

and beneficial to be able

to speak directly to

teams involved in

different areas of the

Business.

Corporate Governance Report continued

Chair visit to New

Jersey

In December, Sir Jeremy

visited the New Jersey

office in North America

to meet the team and

learn more about the

local market.

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Strategic report Governance Financial statements Other information

Corporate Governance Report continued

BOARD PERFORMANCE REVIEW AND EFFECTIVENESS

The Board undertakes a formal

annual review of its own and its

Committees’ performance and

effectiveness. A formal externally

facilitated review of the Board is

conducted at least every three

years in accordance with the Code.

These reviews support continuous

improvement in boardroom dynamics and

governance, fostering an atmosphere of

accountability to empower effective decision

making to align the Company’s strategic

objectives. The three-year Board review cycle

for 2024-2026 is as follows:

2025 external Board performance review

As detailed in the 2024 Annual Report and

Accounts on pages 79-80, a tender process

was undertaken in 2024 for the external

evaluator. Clare Chalmers was appointed to

facilitate the 2025 external performance

review of the Board and its Committees. In

addition to a document review of the Board

and Committee materials, Clare observed the

July 2025 Board and Committee meetings

and held individual interviews with each

member of the Board, the External Auditor,

SVP Group Audit and Risk and a number of

the members of the Group Executive

Committee. The recommendations from the

2025 external review were shared with the

Chair ahead of presenting to the Board at the

November 2025 meeting and a summary of

the review and findings can be found below.

2025 review findings andaction plan

Risk

The Board should continue to oversee the

progress around risk management

processes, frameworks and controls and

ensure that there is a good culture of

frontline ownership of risk and mitigation.

Succession planning

The Nomination Committee should continue

to review the performance, development

and succession plans for the Board and

Group Executive Committee.

Strategy

The Board should continue to review the

balance of agenda items post-transformation

to allow greater focus on strategic growth.

Board Committees

Each Board Committee was highly rated and

confirmed as delivering effective support to

the Board.

Individual Committee actions were reviewed

and agreed by each Committee Chair at the

November Committee meetings.

Individual Director performance

Individual Director performance and

contribution were assessed through

one-to-one meetings with the Chair. The

performance of the Chair was evaluated by

the Senior Independent Director based on

individual feedback and a discussion was held

without the Chair present.

These sessions allowed reflection on

personal development and discussion of

matters relevant to boardroom culture and

process. The findings, in combination with

the individual skills, time commitment and

independence assessments, confirmed each

Director continues to contribute positively.

2024 internal performance review

Lintstock facilitated the 2024 internal review.

Progress against the agreed actions for 2025

is reported in the ‘2024 internal performance

review’ section to the right.

2025 external performance review

Clare Chalmers was appointed to undertake a

comprehensive external review of all aspects

of the Board’s effectiveness. Review findings

and actions for 2026 is reported in the ‘2025

external Board performance review’ section

on the right.

2026 internal performance review

Clare Chalmers will oversee the 2026 internal

review, with the remit and structure to be

agreed by the Chair with support from the

General Counsel & Company Secretary.

Clare Chalmers is independent and does not

perform any other services for the Company.

Clare Chalmers had the opportunity to review

this report ahead of publication.

2024 internal performance

review

Recommendation: Continued focus

on Board successionplanning

Diversity of experience will continue to

be a focus in 2025 for the Nomination

Committee as we continue with the

orderly planning of Board succession.

Action taken during 2025

During 2025, the Board has welcomed

Stefan Oschmann, Mahesh Madhavan and

Pat Verduin as we continue to enhance

theBoard. Stefan and Mahesh bring

experience as CEOs, with expertise in

leading transformation and value creation.

Pat is a highly experienced R&D leader in

healthcare and consumer goods with

arecord of transforming capabilities.

Recommendation: Developing

Board skills further in 2025

Build in additional time on Board agendas

and activities to allow for deep dives,

listening sessions and site visits.

Action taken during 2025

Additional time was built into meetings with

deep dive sessions covering cyber security,

AI and the current geopolitical environment.

There was a site visit to our Hull factory in

the United Kingdom, where Board members

held listening sessions with colleagues and

had a tour of the centre. A strategy Board

session was held in September and

included a deep dive into AI, along with

sessions on category development, supply

and R&D strategy. Further listening sessions

were held in November with colleagues at

our office in Slough (UK).

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Stakeholder Engagement

BUILDING TRUSTED RELATIONSHIPS

At Reckitt, how we engage withour diverse stakeholders isgrounded

inour purpose, valuesand commitment to actingresponsibly.

People and culture

Reckitt colleagues are entrepreneurial, focused and driven; they bring energy, expertise and accountability to

everything we do. This mindset is what makes us different, combining ownership and agility with a shared

commitment to performance and impact.

Our strategic focus on simplifying our business structure has strengthened the foundations of how we work.

Ithas enabled greater ownership across teams, faster decision making and clearer alignment with what drives

us;to make a genuine difference to people’s health and hygiene every day.

We continue to invest in an inclusive, fulfilling and high-performing workplace where everyone has the

support to perform at their best. Through continuous listening, personalised learning and a culture built on

integrity, weare ensuring that our people remain the driving force behind sustainable growth.

2025 outcomes of engagement

• Global communication and connection: The global townhall in July 2025, entitled ‘Our Strategy: One Year On’

led by the CEO and Group Executive Committee (GEC), provided colleagues with clarity on how far we have

progressed with the strategic intent set out in 2024. This built confidence that the strategy was working,

demonstrating results in performance and understanding of the priorities. Consistent messages then formed

the backbone of all the townhalls across the functions and areas. The global townhall attracted record

participation. The quality of the questions demonstrated strong interest and engagement with the programme

and positive reaction to the conversational style of the event. There was positive acknowledgement of the role

modelling collaboration and partnership from the GEC from the audience

• Accessible strategy updates: Our global intranet was relaunched in 2025 to reflect the new organisational

structure of the Business, humanising the Business through profiles on new leaders, areas and regions. This acts

as a central source for key information to help colleagues navigate the Business and has seen a steady increase

in traffic. Many of the functions and areas have introduced regular leadership discussions designed to empower

their leaders to cascade key messages to their teams and drive clarity and understanding of their strategies

• Continuous listening: We introduced a new colleague listening model combining an annual engagement survey

with quarterly pulse checks. This continuous approach creates a stronger feedback loop between colleagues,

leadership and the Board, helping to shape priorities around capability, inclusion and leadership development

• Leadership development: The majority of senior appointments this year came from within the Business,

reflecting the strength of our internal talent pipeline and the impact of MyDevelopment, our digital learning

platform that supports personalised learning and self-directed career growth

How we engage

• Internal communications tools, such as Rubi and our global intranet, connect colleagues and enable

collaboration across markets and functions

• Twice-yearly global townhalls are hosted by the CEO and GEC, supported by function-specific and market-

level townhalls to cascade messaging deeper into the organisation

• Further communications through videos, targeted messages and Rubi news content focus on bringing our

strategic priorities to life through the lens of our employees, and providing clarity on critical new processes and

messages employees need to engage with

• The ‘Leadership Link’ was introduced as a quarterly update to support line managers, ensuring key actions and

tools they need to support their teams are delivered in a simple, easy to use format

• Employee Resource Groups (ERGs) provide spaces for colleagues to connect, share views and promote

inclusion through regular engagement with senior leaders

• Informal forums, focus groups and listening sessions with leaders encourage open dialogue

• Engagement and consultation with colleagues, work councils and trade unions accompany organisational

change, in line with local guidance and legislation

• Elane Stock, the Designated Non-Executive Director for Engagement with the Company’s Workforce, meets

with colleagues and ERGs, sharing workforce perspectives and insights with the Board

• Board members visited our site in Hull (UK) and the office in Slough (UK) where employee engagement

sessions were held and focused on a number of key topics. The Chair visited Milan (Italy), New Jersey (USA)

and Nottingham (UK) to meet employees, learn more about the local market and see operations first hand.

More details can be found in the Board Activities section on pages 62-63

• The Board’s Compliance Committee reviews updates on concerns raised through Speak Up and ensures

appropriate follow-up and action

From our colleagues and partners to the

consumers and communities we serve,

people are at the heart of Reckitt. Their

insight, drive, collaboration and trust are what

enable our Business to grow and prosper.

Our purpose to protect, heal and nurture

inthe pursuit of a cleaner, healthier world

shapes how we engage with every

stakeholder: our own people, consumers and

customers, wider society and government,

suppliers and partners, and our investors.

Guided by our Compass and commitment to

“Do the right thing. Always”, we act with

integrity, accountability and care. Through

open dialogue, responsible decision making

and shared ambition, we are strengthening

the relationships that define our Business and

underpin long-term sustainable growth.

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Stakeholder Engagement continued

Our consumers and customers

We work across society, with communities, governments, NGOs, industry and academia, to address shared

challenges and create impact. Through engagement with policymakers, we help protect and strengthen our

licence to operate and reputation while contributing to the development of effective policy and regulation.

Partnerships with universities, industry groups and multilateral organisations support innovation and provide

valuable research, insight and feedback, strengthening our approach and helping to shape wider global action.

The challenges we face are complex and interconnected. By working together, and through the reach of our

brands and social impact programmes, we can amplify collective impact and drive lasting change while

supporting our commercial objectives.

2025 outcomes of engagement

• Government engagement: We continued building Reckitt’s relationship with the UK government including

hosting the Prime Minister at our Hull R&D Science & Innovation Centre (UK). We also engaged with key US

political stakeholders. Additionally, we participated in several global forums including United Nations General

Assembly and COP31. We delivered strategic engagement with the Office of the President of India and federal

ministries across South Asia, with Dettol being highlighted in Madame President’s national address. We

engaged with the British High Commission and the UK Trade Commissioner to reinforce collaboration on shared

health, trade and equitable access priorities in Africa

• Local government: We strengthened local government partnerships for public health impact, including

establishing strategic collaboration with the Makati City (Philippines) local government unit to support the

anti-dengue campaign

• Sponsorships: We sponsored the Congress Health Fair in Mexico, attended by 128 senators and 500

deputies, to raise awareness of our programmes on sexual health, anti-microbial resistance and maternal and

neonatal health

• NGO partnerships: We further developed our WWF partnership to build water catchment programmes in

South Africa and China, and landscape programmes within palm sourcing supply networks in Indonesia

How we engage

• We engage regularly with governments and policymakers, as well as multilateral institutions and forums. We

do this through formal policy consultation processes and ongoing bilateral engagement

• We engage with industry peers and trade associations across the globe relevant to our sector, on issues

including water scarcity and driving health resilience programmes and initiatives, aimed at scaling innovation

in health and hygiene solutions.

• We engage with healthcare practitioners internationally to exchange information, share best clinical practice

and sponsor research. Reckitt is part of the Sustainable Markets Initiative Health Systems Taskforce, a

public-private partnership accelerating the delivery of net zero healthcare

• We drive behavioural change at scale through our leading brands and programmes, including the Dettol

Banega Swasth India campaign

• We expanded our social entrepreneurship programme to the US. In partnership with Acumen America, Yunus

Social Innovation and Health Innovation Exchange, Reckitt Catalyst will support up to 200 founders over the

next five years, across more than 13 countries

Society (communities, governments, NGOs, industry and academia)

Our consumers and customers are central to how we create value and deliver sustainable growth. Their trust,

insight and collaboration drive purposeful innovation, improve product performance and help our brands reach

more people in more places.

As expectations evolve, from quality and transparency to sustainability, we are strengthening partnerships to

deliver positive impact. This close connection between us, our consumers and our customers underpins our

growth and our purpose: creating trusted, science-based solutions that protect, heal and nurture.

2025 outcomes of engagement

• Insight-led innovation: Consumer insights guided product development across our Powerbrands, including

Vanish Oxi Action, Durex Basic HA, Mucinex Mighty Chews and Nurofen Sustained Release, each of which

addresses specific needs for efficacy, convenience and trust

• Purpose-driven campaigns: The Nurofen See My Pain campaign continued to raise awareness of the gender

pain gap deepening brand engagement and consumer trust

• Retailer partnership: Together with Coles in Australia, we advanced our shared commitment to community

wellbeing by delivering the fourth year of our Foodbank Cold & Flu initiative. Through this collaboration, we

provided £0.5 million in essential self care products to vulnerable households, while strengthening in-store

engagement across key health categories

• Sustainability retailer logistics partnership:By leveraging our carbon data capabilities with key retail

partners in Australia, we worked with Coles and Woolworths to identify carbon hotspots across our shared

logistics network. Through this collaboration, we transitioned to higher-efficiency vehicles on priority lanes,

reducing joint emissions while improving overall network performance

How we engage

• We gather real-time consumer insight through our sales, supply chain, customer and consumer teams. Our

sensory and consumer science labs combine this insight with behavioural analytics to develop superior,

science-grounded solutions and forge emotional connections through our brands

• Customer relationships are coordinated globally, regionally and nationally through our customer service and

sales teams. Joint meetings and workshops define shared commercial and non-financial objectives alongside

strategy, action plans and growth metrics

• We collaborate with major customers on joint sustainability business plans, advancing shared goals such as

plastics and packaging reduction, and emissions avoidance. Category, shopper, sustainability, channel and

regional specialists provide ongoing operational support

• During the year, the Board received deep dive presentations from the President of Emerging Markets,

including an update on consumer trends in those regions; the President of Mead Johnson Nutrition provided

an update on its consumers and customers; and the Chief Category Growth Officer provided a deep dive on

trends across our categories and the innovations underway

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Our suppliers and partners

Maintaining long-term relationships with suppliers and partners drives innovation and supports cost

effectiveness and long-term business resilience.

Suppliers are valued partners and our relationships are founded on high standards that drive mutual success.

Our responsible sourcing programme, human rights due diligence and established contracting processes drive

our supplier and third-party engagement activity.

2025 outcomes of engagement

• Sustainability standards: We continued to roll out our Supplier Sustainability Standards, engaging key raw

material and packaging suppliers on emission reduction opportunities

• Supplier scorecards: Partnering with EcoVadis, we are assessing the sustainability credentials and

performance of key suppliers. This year, we expanded the scope of the programme, engaging and assessing

more suppliers and gaining more visibility on risks and best-in-class practices across our value chain

• Innovation partnership: We ran our Partners to Innovate Programme with key strategic suppliers to promote

sustainable innovation and improved manufacturing processes

• Supply chain visibility: We continued our relationship with Sedex and Diginex Lumen to increase visibility

ofour key suppliers, responsible sustainability practices

How we engage

• We host regional supplier capability-building events in partnership with industry peers, where local suppliers

are invited to attend and share best practice on salient topics

• We conduct regular supplier audits based on past performance and risk. Where needed, we work with

suppliers through our capability-building programme to help improve processes and raise standards

• Our centralised procurement function leads supplier relationship management to monitor supplier

performance and enable best practice sharing

• The Board receives regular briefings from the supply function on our key supplier relationships, including

inthe context of progress against our wider supply strategy

• Following his first year at Reckitt, a deep dive took place at the September Board meeting from Harald

Emberger, our Chief Supply Officer, which covered the strategy for supply and his vision for supply

inthefuture

Stakeholder Engagement continued

Our investors

Our investment community includes current shareholders and prospective investors, mainly institutional and

retail, as well as sell-side research analysts, investment and financing banks and rating agencies. Many of our

employees form part of this shareholder community.

A strong investor base and continued access to capital are critical to our long-term success. We focus on

driving an open, consistent and transparent dialogue with these stakeholders, informing shareholders of our

strategy, financial performance, growth potential and risks.

2025 outcomes of engagement

• Focus on series: During 2025 we launched the Reckitt Focus on series of events to enhance investor

education around core Reckitt. Events included in-person and webcast presentations on our Unified Global

Category Organisation, led by Chief Category Growth Officer Ryan Dullea, and our Emerging Markets area,

led by President Emerging Markets Nitish Kapoor

• Simplified operating model: Our CEO Kris Licht provided updates on the progress against our strategy,

including how our sharpened operating model is driving results and reshaping Reckitt as a world-class

consumer health and hygiene organisation

How we engage

• We communicate our financial results through management presentations to analysts and institutional

investors, and at our Annual General Meeting to all of our shareholders

• Post-results announcement, our CEO and CFO attend roadshows to meet with current shareholders and

prospective institutional investors to discuss our latest financial performance and address any questions

• Management and our investor relations team attend investor conferences throughout the year to

communicate our strategy, recent developments and our financial results

• We hold ad hoc meetings with investors and sell-side analysts as requested to address strategic, operational,

ESG and modelling queries

• We host a number of additional investor engagement events, including seminars, sell-side sales desk

presentations and credit investor updates, and this year our Chair, Sir Jeremy, undertook a roadshow to meet

with shareholders and offer an opportunity to discuss governance and strategic developments. He also took

part in a question and answer session hosted by The Investor Forum, covering a range of topics including

sustainability and portfolio strategy

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Section 172 Statement

This statement describes how the

Directors have acted, in good faith,

in a manner they consider most likely

to promote the success of the

Company for the benefit of its

members as a whole during 2025,

having regard to the interests of

stakeholders and the matters set out

in Section 172(1)(a)–(f) of the

Companies Act 2006.

Effective engagement with our shareholders,

employees and wider stakeholders is key to

Reckitt’s sustainable success. In our decision

making, we consider what will most likely

promote the long-term success of the Company

for our shareholders, while also taking into

account the interests of other stakeholders.

We recognise that our Business can only grow

and prosper by acting in the long-term interests

of our key stakeholders, namely our people, our

consumers and customers, our shareholders,

investors and partners, the communities in which

we operate, governments, NGOs, industry and

academia we engage with, and the environment.

Examples of how the Directors have oversight

and had regard for these stakeholder matters

when making decisions are included throughout

this Annual Report.

The Board considers our key stakeholders and the

matters set out under Section 172 of the Companies

Act 2006 in its discussions and decision making. The

following table sets out areas of this Annual Report

where the Board has considered matters under

section 172 during the year.

EFFECTIVE ENGAGEMENT WITH OUR STAKEHOLDERS

Section 172 (a) – (f) additional disclosures Pages

A: Likely consequence of any

decisions in the long term

Chair’s Statement and Chief Executive Officer’s Statement 2-6

Business model, strategic priorities and value chain 7-23

Value chain and performance-KPIs 14, 20

Board activities and section 172 Statement 62-63, 68

Risk management 48-51

B: Interests of our employees Performance-KPIs 20

Stakeholder engagement 65-67

Nomination Committee Report 69-73

Directors’ Remuneration Report 84-111

Directors’ Report 112-115

People and culture 8-9

C: The need to foster relationships

with suppliers, customers and

others

Chair’s Statement and Chief Executive Officer’s Statement 2-6

Business model, strategic priorities and value chain 7-23

Value chain and performance-KPIs 14, 20

Risk management 48-51

Stakeholder engagement 65-67

D: The impact of our operations on

the community and environment

Business model, strategic priorities and value chain 7-23

Performance-KPIs and sustainability performance 20, 42-47

Stakeholder engagement 65-67

Board activities and section 172 Statement 62-63, 68

Sustainability performance and Non-Financial and Sustainability Information

Statement

42-47

E: The desirability of the Company

to maintain a reputation for high

standards of business conduct

Business model and value chain 7-23

Corporate Governance Report 57-64

People and culture and Board activities 8-9, 62-63

Board activities and section 172 Statement 62-63, 68

Compliance Committee Report 82-83

F: The need to act fairly between

members of the Company

Strategic priorities and performance-KPIs 17, 20

Board activities and section 172 Statement 62-63, 68

Stakeholder engagement 65-67

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

NOMINATION

COMMITTEE REPORT

Member Scheduled meetings attended

Sir Jeremy Darroch Chair and member for the whole year 2/2

Andrew Bonfield Member for the whole year 2/2

Margherita Della Valle Member for the whole year 2/2

Key objectives for the year ahead

• Continue succession planning for the

Board and senior management roles and

keep Committee memberships under

review

• Undertake an internal Board performance

review, facilitated by Clare Chalmers

In 2025, the Committee remained focused on robust

succession planning, aligning leadership capabilities

with the Group’s strategic priorities. An externally

facilitated review of Board and Committee

effectiveness provided valuable feedback and

furtherstrengthened governance and leadership.

On behalf of the Board, I am

pleased to present the Nomination

Committee Report for the financial

year ended 31 December 2025.

Committee priorities in 2025

• Induction of Mahesh Madhavan, Stefan

Oschmann and Pat Verduin as new

Non-Executive Directors

• Transition of Remuneration Committee

Chair in May 2025 and Compliance

Committee Chair in July 2025

• Continued succession planning for the

Board and senior management roles to

ensure the Group has the right skills and

experience to deliver its strategy

• External review of the effectiveness ofthe

Board, its Committees and individual

Directors, which generated valuable

feedback and the development oftargeted

action plans

Committee membership

Members of the Committee are appointed by

the Board. Membership is reviewed at least

annually and was reviewed following the 2025

AGM. Members include the Chair and certain

independent Non-Executive Directors.

A performance review of the Committee took

place as part of the external performance

review of the Board in July. In accordance with

the principles of the Code, the Committee is

made up of a majority of independent Non-

Executive Directors. The General Counsel &

Company Secretary acted as Secretary to the

Committee during the year.

All Directors are required to seek election or

re-election each year at the AGM. Biographical

details of the Directors, including their skills

and experience, can be found on reckitt.com/

our-company/our-leadership.

Role and responsibilities

The role of the Committee, as set out in the

Committee’s terms of reference, is to ensure

that there is a formal, rigorous and transparent

procedure for the appointment of new

Directors to the Board, to lead the process for

Board appointments and ensure that plans are

in place for the orderly succession and

development of both Board and senior

management positions.

Further details on the Committee’s role and

responsibilities can be found below and in its

terms of reference, available at reckitt.com/

investors/corporate-governance.

Board composition

The Committee regularly reviews the

composition of the Board and its Committees,

considering the balance of skills, experience,

independence, knowledge, diversity and how

effectively Directors work together to achieve

Reckitt’s objectives.

Non-Executive Directors are initially appointed

for a three-year term and generally continue to

serve one or more further terms. All Directors are

nominated for appointment by the Committee,

which is subsequently approved by the Board.

As previously announced, Mahesh Madhavan

and Stefan Oschmann were appointed as

Non-Executive Directors, with effect from 1

January 2025, and Pat Verduin was appointed

as a Non-Executive Director with effect from 9

June 2025. Biographical details can be found

on our website at reckitt.com/our-company/

our-leadership/.

A Q&A with Stefan and Pat on their views and

observations since joining Reckitt is set out on

page 73.

The Committee used MWM Consulting for the

appointments of Mahesh Madhavan, Stefan

Oschmann and Pat Verduin. MWM Consulting has

no other connection with individual Directors.

Sir Jeremy Darroch

Chair of the Nomination Committee

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

As previously communicated, following the

AGM in May 2025, Mary Harris retired from the

Board and Fiona Dawson became Chair of the

Remuneration Committee. In July 2025,

Mehmood Khan stepped down from the

Board, and following his departure Pat Verduin

became Chair of the Compliance Committee.

Director tenure and independence were

reviewed as part of the external Board

performance review and it was concluded

that each Non-Executive Director remained

independent.

In accordance with the Code, and on

recommendation of the Committee, with the

exception of Margherita Della Valle and

Mahesh Madhavan, who will be retiring from

the Board at the 2026 AGM, all other existing

Directors will stand for election or re-election

at the AGM. Resolutions to this effect will be

proposed to shareholders for approval at the

forthcoming AGM.

Details of the specific contributions each Director

makes to Reckitt’s long-term success are set out

in the Notice of AGM, available at reckitt.com/

investors/annual-general-meetings.

Succession planning

The Committee regularly reviews and

monitors the Board’s structure, size and

composition, including the balance of skills,

experience, independence, knowledge

anddiversity required, and makes

recommendations to the Board of any

changes deemed necessary. Consideration is

given to the length of service of the Board as

a whole and Directors individually. In addition,

the Committee keeps the leadership needs of

the Company, including senior management

positions, under review, ensuring plans are in

place for orderly succession, so that the

Company can continue to compete

effectively in the markets in which it operates.

The Committee considers Board renewal on

an ongoing basis and makes

recommendations to the Board regarding

proposed appointments. The Committee is

also responsible for making recommendations

for the role of Senior Independent Director

and proposes the membership and the role of

Chair for each of the Board Committees.

Induction programme

New Directors receive a tailored induction

programme on appointment to the Board to

suit their individual experience and

background. The induction programme

generally includes meetings with the other

Board Directors, the General Counsel &

Company Secretary and GEC members on a

one-to-one basis, along with meeting some

of our key external advisors. The meetings are

held in person or virtually.

New Directors may also carry out market visits

and attend key Reckitt sites to enhance their

inductions into the Company.

Board Directors’ ongoing training and

development

The Chair has overall responsibility for

ensuring that all the Directors receive suitable

training to enable them to carry out their

duties. As part of their roles, Directors are also

expected to personally identify any additional

training requirements they feel would benefit

them in performing their duties. We arrange

ongoing training including legal and financial

regulatory developments relevant to the

Company and the Directors.

Training is also provided by way of briefing

papers or presentations at scheduled Board

meetings, as well as meetings with senior

executives or external sources. The Directors

may, at the Company’s expense, take

independent professional advice and are

encouraged to continually update their

professional skills and knowledge of the

Business and wider industry.

During the year, a number of deep dive and

training sessions were held including on topics

such as: artificial intelligence, cyber security,

the Code (including on provision 29 - internal

controls), an ECCTA update and a geopolitical

environment update. Materials have been

made available for Board members to view.

We also aim to provide Directors with an

opportunity to engage directly with

employees and be immersed in the Business.

GEC changes

Sheila Redzepi was welcomed as Chief

Communications and Corporate Affairs

Officer in March 2025.

Biographical details of GEC members can be

found on our website at reckitt.com/our-

company/our-leadership.

Committee effectiveness review

An external effectiveness review of the

Committee was conducted as part of the

broader Board review performed by Clare

Chalmers and further information can be

found on page 64.

The Board, having had sight of the results of

the Committee’s effectiveness review,

considers the Committee to continue to

operate effectively.

Nomination Committee Report continued

Reckitt Board

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Nomination Committee Report continued

Diverse leadership

Male: 42%

Female: 58%

Gender*Tenure*

Under 3 years: 67%

3-6 years: 17%

6-9 years: 17%

British: 25%

American: 33%

Irish: 8%

German: 8%

Indian: 8%

Danish: 8%

Italian/British: 8%

Nationality*

* These graphs are based on data as at 31 December 2025

Meetings of the Committee are held as

needed but are required to take place at

least once a year. In 2025, the Committee

held two scheduled meetings and two

additional meetings. Meetings take place

ahead of Board meetings and the Chair of

the Committee reports formally to the Board

on its proceedings. Details of the activities

undertaken across the four meetings held

are set out below.

Key activities during 2025

February

• Succession planning

• Non-Executive Director succession in relation to potential

appointments was discussed

May

• Succession planning

• The appointment of Pat Verduin as a Non-Executive Director was

discussed and then approved for recommendation to the Board

• Agreed to review the membership of each Committee and propose

any necessary changes

July

• Succession planning

• Acknowledged Mehmood Khan’s request to step down from the Board

and the Compliance Committee

• Considered the membership of the Board Committees and agreed the

changes for recommendation to the Board

November

• Succession planning

• Non-Executive Director succession planning was discussed

• Discussed the Board performance review feedback in relation to the

Committee

• Annual review and recommendation for approval to the Board of the

terms of reference of the Committee

• Annual review and recommendation for approval of the Board

Diversity and Inclusion Policy

• Annual review of potential conflicts of interest

CEO experience

Health and pharmaceuticals

Consumer goods

Transformation and strategy

Financial expertise

Management and leadership experience

UK-listed companies

Marketing and digital

Remuneration and culture experience

ESG (including climate)

Governance and compliance

Board skills as at 31 December 2025

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Nomination Committee Report continued

Representation of ethnicity at Board and senior management levels

At31December 2025

Number of

Board members

Percentage of

the Board

Number of

senior positions

on the Board

(CEO, CFO, SID

and Chair)

Number in

executive

management

Percentage of

executive

management

White British or other

White (including

minority White

groups) 11 92% 4 7 70%

Mixed/multiple

ethnic groups – – – 1 10%

Asian/Asian British 1 8% – 2 20%

Black/African/

Caribbean/Black

British – – – – –

Other ethnic group,

including Arab – – – – –

Not specified/prefer

not to say – – – – –

Representation of women at Board and senior management levels

Number of

Board members

Percentage of

the Board

Number of

senior positions

on the Board

(CEO, CFO, SID

and Chair)

Number in

executive

management

Percentage of

executive

management

Men 5 42% 3 6 60%

Women 7 58% 1 4 40%

Not specified/

prefernot to say – – – – –

Further details can be found on pages 8-9 and in our Fairer Society section on page 46.

Sir Jeremy Darroch

Chair of the Nomination Committee

Reckitt Benckiser Group plc

4 March 2026

Diversity and inclusion

At Reckitt we recognise that our people

areasource of competitive advantage.

Thefact that every one of us is unique

givesus diversity of thought and enables

creative solutions.

Our commitment to increasing inclusion

across different nationalities, ages,

backgrounds, identities, beliefs and cognitive

diversity, as well as gender, is fundamental to

a fair and equitable working environment and

to providing products and services that mean

more to our consumers around the world.

Ultimate responsibility for and sponsorship

ofthis policy rest with the GEC. Senior

management is accountable and all Reckitt

employees are responsible for ensuring that

our diversity policies and programmes are

implemented and followed.

We have in place a Board Diversity and

Inclusion Policy, which is in line with the

Financial Conduct Authority (FCA) Policy on

Diversity and Inclusion on Company Boards and

Executive Management, the Parker Review and

the FTSE Women Leaders Review. The Policy

can be found on our website at reckitt.com/

investors/corporate-governance.

The Committee and the Board are committed

to recruiting members of the Board on the

strict criteria of merit, skill and experience

andseek diversity of gender, social and

ethnicbackgrounds, as well as cognitive

andpersonal strengths. This commitment is

demonstrated through our Board composition

which comprises seven nationalities, seven

women and five men as at the date of this

report. Our Board includes ethnic minority

representation, meeting the Parker Review

recommendation and the FCA Policy on

Diversity and Inclusion on Company Boards

and Executive Management.

Diversity in senior leadership

As submitted to the UK Parker Review, 16.7%

of UK-based senior leaders (GEC and GEC-1)

reported as being from an ethnic minority.

This widens our understanding of our

consumers, who come from the broadest

possible backgrounds allowing us to be best

placed in serving their needs. For further

details relating to our workforce inclusivity,

please see pages 9 and 46.

Representation of women at Board and

senior management levels

As at 31 December 2025, 58% of our Board

members are women and we have surpassed

40% female representation as recommended

in the FTSE Women Leaders Review. In

addition, we will comply with the FCA’s Policy

on Diversity and Inclusion on Company Boards

and Executive Management, which requires

that at least one of the senior Board roles

should be held by a woman, with Shannon

Eisenhardt as CFO.

As at 31 December 2025, representation of

women within the GEC was 40%. Women

constitute 30% of GEC direct reports in

leadership roles*. We will continue to review

the representation of women in leadership

roles within the GEC as detailed in the FTSE

Women Leaders Review (and in provision 23

of the Code).

For further details relating to gender balance

within our workforce, please see page 46.

* Leadership roles include GEC, Group Leadership and

Senior Management Teams

To see the full interview, go to visit reckitt.com

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Nomination Committee Report continued

Q&A

PAT AND STEFAN JOINED THE BOARD DURING 2025

ANDPROVIDED SOME THOUGHTS AND REFLECTIONS

FOLLOWING THEIR APPOINTMENTS

What are your views on

Reckitt’s culture?

PV: I feel that the culture of any

organisation, particularly one that

operates in such a dynamic market,

needs to constantly evolve. I’ve been so

impressed with the team members I’ve

had the opportunity to meet at Reckitt.

Not only are they subject matter experts

but they show respect for one another’s

contributions and want Reckitt to

succeed doing the right things in the

right way. It’s very energising to be part

of this team.

SO: I am impressed by the combination

of performance and clear value

orientation in Reckitt’s culture.

A corporate culture is strongly influenced

by the CEO and his direct team. Kris and

his team are doing an excellent job in

living these principles.

Pat Verduin

Non-Executive Director

What have been your key highlights

and challenges in your first year?

PV: Highlights and challenges tend to go

hand in hand. Challenges tend to bring

out the very best in people and teams.

I’ve been amazed at the goals and

standards of performance the Reckitt

team sets for itself as well as high-level

energy and collaboration used to achieve

those goals. Challenging markets, rising

external stakeholder expectations and

organisation transformation are all

happening at once. The Reckitt team

takes on all of these and commits to

success with conviction and integrity.

It’squite impressive.

SO: I spent a lot of time familiarising

myself with Reckitt’s business

organisation and I am happy that I’ve

made significant progress in this.

Highlights were experiencing the unique

mixture of challenge and support within

the Board of Directors, as well as the

process to divest Essential Home

toAdvent.

What has stood out to you most about

the way the Board operates?

PV: I’ve been impressed with two

differentiating facets to Reckitt’s Board.

First is the honest and open discussions

that are held on all topics. Differing

points of view are welcomed and

debated which enables the best

decisions to be made. Second is the

focus on building a trajectory for growth

well into the future. It’s easy to get mired

in past performance and more

immediate challenges but this Board

spends a great deal of time planning for

the future - whether that be ensuring

strong financial performance, creating

innovative solutions for our consumers or

building the right organisational culture.

SO: My experience within the Reckitt

Board is that the Board is good at finding

the right balance between challenge and

support on the one hand and strategy

and operations on the other. I appreciate

the open discussion and transparency

and the absence of grandstanding.

Stefan Oschmann

Non-Executive Director

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

AUDIT

COMMITTEE REPORT

Member Scheduled meetings attended

Andrew Bonfield Chair and member for the whole year 4/4

Margherita Della Valle Member for the whole year 3/4

Elane Stock Member for the whole year 4/4

Tamara Ingram Member for the whole year 3/4

Marybeth Hays Member for the whole year 4/4

Committee priorities in 2026

• Maintain oversight of Reckitt’s

riskmanagement and internal control

procedures, including monitoring key

areas in the context of risk and

controlinpreparation for provision

29ofthe Code

• Oversee the finance function

transformation programme

• Review cyber security risks andcontrols

The focus this year remained on oversight of

Reckitt’s internal controls and risk management

framework in the context of the updated

Corporate Governance Code.

On behalf of the Board, I am

pleased to present the Audit

Committee Report for the financial

year ended 31 December 2025.

This report details how the Committee has

discharged its role, duties and performance

during the year including in relation to internal

control, financial and other reporting, risk

management, the internal audit function and

our relationship and interaction with the

External Auditor.

Andrew Bonfield

Chair of the Audit Committee

Committee membership and experience

Name Recent and relevant financial experience

Sectoral experience relevant

toReckitt’s operations

Andrew Bonfield (Chair) • Financial expert

• Chartered Accountant

• Currently CFO of a global US Fortune

100company

• Multiple CFO roles at other large

companies, including in the consumer

goods sector

• Consumer goods

• Pharmaceuticals/healthcare

Margherita Della Valle • Financial expert

• Holds a master’s degree in economics

• Previously held Group CFO and senior

finance roles

• Group CEO of FTSE 50 company

• Consumer goods

• Technology

Elane Stock • Holds master’s degrees in finance

• Previously a member of the audit

committee of two US-listed entities

• Consumer goods

• Emerging markets

Tamara Ingram • Member of the audit committee of a

US-listed company

• Consumer goods

• Digital strategy

Marybeth Hays • Member of the audit committee of a

US-listed company

• Consumer goods

• Healthcare

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

All Committee members are independent

Non-Executive Directors who have financial,

economics and/or business management

expertise in large companies.

Committee members are expected in

particular to have an understanding of:

• the Group’s operations, policies and internal

control environment;

• the principles of, and recent developments

in, financial reporting;

• relevant legislation, regulatory requirements

and ethical codes of practice; and

• the role of internal and external audit and

risk management.

The Board is satisfied that, in compliance with

the Code, Committee members as a whole

have competence relevant to the Company’s

sector (consumer goods).

Committee appointments are generally made

for a three-year period. Members of the

Committee are appointed by the Board on the

recommendation of the Nomination

Committee.

On joining the Committee and during their

tenure, members receive additional training

tailored to their individual requirements.

Management provided regular briefings to the

Committee on matters covering governance

and legislative developments, accounting

policies and practices, and tax and treasury.

Committee members also meet with

management covering internal audit, risk

management, legal, tax, treasury and financial

matters, as well as meetings with the External

Auditor.

During the year, the Deputy Company

Secretary acted as Secretary to the

Committee.

Meetings

During 2025, the Committee held four

scheduled meetings at times aligned to the

Company’s reporting cycle. In addition, one

non-scheduled meeting was held in June in

relation to the Group’s external audit tender

process and recommendation to the Board.

Committee meetings usually take place ahead

of Board meetings and the Committee Chair

provides an update to the Board on the key

issues discussed at each meeting. Committee

papers are provided to all Directors in

advance of each meeting, including a copy of

the Committee minutes.

Meetings are attended by senior representatives

of the External Auditor and by the CFO, SVP

Group Controller & Head of Tax and SVP

Group Audit and Risk. Other Board Directors

are invited to attend all meetings and the CEO

attends and observes most meetings. Other

members of management attend when

deemed appropriate by the Committee.

Time is allocated at the end of each meeting

for private discussion with the CFO, the SVP

Group Audit and Risk and the External Auditor,

without other invitees being present, as well

as a private session of the Committee

members.

Committee effectiveness review

An external review of the Committee was

conducted as part of the Board’s annual

performance review. All areas received

positive ratings.

The Board, having had sight of the results of

the Committee’s review, considers the

Committee to be operating effectively.

Audit Committee Report continued

Market leading Dettol and Lysol products

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Fair, balanced and understandable

The Committee reviewed the 2025 Annual

Report and Financial Statements to confirm

that it is fair, balanced and understandable

and provides sufficient information for

shareholders to assess the Group’s position,

performance, business model and strategy.

The Committee relies upon the following

assurance framework in making its assessment

of fair, balanced and understandable:

• All sections of the 2025 Annual Report and

Financial Statements were prepared in

accordance with the standard operating

procedures (SOPs) as approved by the

Disclosure Committee

• A detailed review of the 2025 Annual Report

and Financial Statements was undertaken by

senior management and the Disclosure

Committee to ensure consistency in

messaging and appropriate balance

• A comprehensive review by the Directors

and the senior management team of the

form, content and consistency of narrative,

the disclosures contained in the Financial

Statements and the underlying processes

and controls supporting the preparation of

the 2025 Annual Report and Financial

Statements

• A comprehensive verification process,

supporting the significant facts, figures

and assertions included in the 2025 Annual

Report and Financial Statements

The Committee and the Board received

confirmation from management that the

2025 Annual Report and Financial Statements

had been prepared in accordance with the

assurance framework and that appropriate

verification had been undertaken.

In addition, the Committee also reviewed

KPMG’s audit findings report, draft audit

opinion and draft management

representation letter.

Following the Committee’s review, the

Committee was satisfied that the 2025

Annual Report and Financial Statements,

taken as a whole, met its objectives and

accordingly recommended to the Board that

the 2025 Annual Report and Financial

Statements be approved and that the Board

make its statement on page 116.

Role and responsibilities

The Committee is part of the Group’s

governance framework and supports the

Board in fulfilling its oversight responsibilities in

ensuring the integrity of the Group’s financial

reporting, internal controls and overall risk

management process, and relationship with

the Company’s External Auditor.

Financial reporting

• Monitor the integrity of the Financial

Statements of the Company including

interim and annual Financial Statements

• Review the appropriateness of significant

accounting policies and practices

• Review significant financial judgements

and estimates, taking into account the

External Auditor’s view on the financial

judgements and estimates

• Advise the Board on whether, taken as a

whole, the Annual Report is fair, balanced

and understandable and provides the

information necessary for shareholders to

assess the Company’s performance,

business model and strategy

Risk management systems and

internalcontrols

• Review and monitor the effectiveness of

the management of risk and overall system

of internal control

• Review the effectiveness of the

Company’s governance framework to

identify, assess and manage material

internal controls

• Review and recommend the annual

declaration of risk management and

internal controls statement to the Board

for inclusion in the Company’s Annual

Report

• Review the framework and analysis to

support both the going concern and the

long-term Viability Statement

Whistle-blowing, fraud and compliance

In conjunction with the Compliance

Committee, review the Company’s

arrangements for its workforce to raise

concerns about possible wrongdoings

infinancial reporting and other matters;

itsprocedures for detecting fraud; and

itssystems and controls for ethical behaviours

and the prevention of fraud, tax evasion,

bribery and any other financial crime.

External audit

• Make recommendations to the Board on

the appointment, removal, remuneration

and terms of engagement of the External

Auditor, in line with the FRC Audit

Committees and the External Audit:

Minimum Standard

• Review and assess the External Auditor’s

independence and objectivity taking into

account relevant UK law and professional

and regulatory requirements

• Develop, recommend and implement the

Group’s policy in relation to the provision

of non-audit services

• Review and approve the annual audit

planand assess the effectiveness of

theaudit process

Internal audit

• Review and approve the internal audit plan

and consider the effectiveness of the

internal audit process, including the

relevance of audit coverage, quality of

audit reports and the timeliness of

management actions

• Review and monitor the effectiveness of

the internal audit function, including its

independence, scope, skills, and

resourcing, to ensure it remains

appropriately positioned to perform its

role effectively

There were no significant changes to the

Committee’s role and responsibilities during

the year.

The Committee’s role and responsibilities are

set out in its terms of reference, which are

available at reckitt.com/investors/corporate-

governance.

Audit Committee Report continued

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Audit Committee Report continued

• Reviewed the 2024 Annual

Report and Financial

Statements, the going concern

basis of preparation and the

Viability Statement, and

recommended them for

approval by the Board

• Reviewed the KPMG

management representation

letter

• Reviewed the final dividend

proposal

• Received an update on KPMG’s

2024 audit findings report,

observations on Reckitt’s

internal controls for the 2024

financial year and a report on

the 2024 Annual Report and

Financial Statements

• Annual review of risk

management and internal

controls including review of

risks across Group functions

and of the integrated risk

management framework

• Received an update from the

Internal Auditor on progress

against the 2024 audit plan and

audits planned for 2025 and

reviewed the Internal Audit

Charter

• Received an update on the

Corporate Controller’s Report

covering key accounting and

reporting matters

• Received an update on Speak

Up reports

• Received an update on

non-financial reporting

disclosures and regulation

• Received an update on KPMG’s

strategy for the 2025 audit

• Reviewed the audit quality

delivery and assessment of

External Auditor effectiveness

• Approved KPMG’s 2025 audit

fees and terms of engagement

• Received an update on

progress with the 2025

audittender

• Received an update on the key

internal audit findings and any

significant matters, and status

of the internal audit plan

• Received an update on the

Corporate Controller’s Report

covering key accounting and

reporting matters

• Received an update on the

Internal Controls Programme

• Reviewed the whistle-blowing

procedures

• Received an update on Speak

Up reports

• Received an update on

non-financial reporting

disclosures and regulation

• Received presentations from

external audit firm candidates

• Management provided

feedback on presentations

and reviewed the presentation

scorecard

• Agreed a preferred External

Audit Partner for

recommendation to the Board

• Reviewed the 2025 half year

results announcement,

including the going concern

basis of preparation and

recommended them for

approval by the Board

• Received KPMG’s half year

review report findings to 30

June 2025 and management

representation letter

• Received KPMG’s assessment

of its objectivity and

independence

• Received an update on the key

internal audit findings, any

significant matters, the status

of the internal audit plan and

the responsiveness of

management

• Reviewed the Group’s funding

position and a proposal related

to a new revolving credit

facility

• Received an update on the

Corporate Controller’s Report

covering key accounting and

reporting matters

• Received an update on the

Internal Controls Programme

• Received an update on KPMG’s

internal controls review and

audit strategy

• Received an update on the

2025 Internal Audit Plan and

actions

• Reviewed the 2026 Internal

Audit Plan

• Received an update on the

annual tax review

• Reviewed and approved the

updates to the Group Treasury

Policy

• Received an update on the

Corporate Controller’s Report

covering key accounting and

reporting matters

• Received an update on the

Internal Controls Programme

• Received an update on

progress with compliance

against provision 29 of the UK

Corporate Governance Code

• Reviewed and approved the

Committee’s 2026 standing

agenda and terms of reference

• Discussed the performance

review findings of the

Committee

• Received an update on Speak

Up reports

February May June July November

Key activities during the year

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Audit Committee Report continued

Significant and key financial

reportingmatters

The Committee is responsible for reviewing

and approving the appropriateness of the

interim and annual Financial Statements and

related announcements, including:

• recommending that, in the Committee’s

view, the Financial Statements are fair,

balanced and understandable. In addition to

the detailed preparation and verification

procedures in place for the 2025 Annual

Report and Financial Statements,

management continued its focus on

narrative reporting with clear written and

visual messaging to communicate the

Group’s strategy;

• reviewing the appropriateness of the

accounting policies, judgements and

estimates used as set out from pages

137-177 and concluding that the judgements

and assumptions used are reasonable; and

• reviewing the Group’s policy relating to, and

disclosure of, alternative performance

measures (APMs).

Areas of significant financial judgement

The Committee focuses on maintaining the

integrity and quality of the financial reporting

considering the significant accounting

judgements made by management and the

findings of the External Auditor. The

Committee assesses whether suitable

accounting policies have been adopted and

whether management has made appropriate

estimates and judgements through reviewing

and challenging accounting papers prepared

by management. The areas of significant

financial judgement in relation to the 2025

Group Financial Statements considered by the

Committee, together with a summary of the

actions taken, were as follows:

Disposal of Essential Home

In November 2025 and March 2026, the

Committee reviewed the accounting for

thedisposal of the Essential Home business

following the announcement to divest in

July2025.

The key judgements reviewed by the

Committee were the fair value estimates of

consideration received including the 30%

equity interest and the vendor loan note and

whether the disposal was a discontinued

operation. The valuations were performed by

external valuation experts from EY and

reviewed in detail by management. The

Committee confirmed the key judgements

and estimates made by management and

reviewed the disclosures included in Note 29

and considered them appropriate.

Recoverability of goodwill and other

intangible assets

Under International Financial Reporting

Standards (IFRS), goodwill and indefinite life

assets must be tested for impairment on at

least an annual basis. Impairment testing is

inherently judgemental and requires

management to make multiple estimates on

future performance, for example around

future price and volume growth, future

margins, terminal growth rates and discount

rates. The Group’s impairment testing utilised

cash flow projections included within

one-year budgets and five-year strategic

plans. Cash flows beyond the five-year period

were projected using terminal growth rates.

As a result of impairment testing performed in

2025, management determined that an

impairment charge of £175 million relating to

its Biofreeze CGU was required at 31

December 2025 (2024: impairment charge of

£142 million).

In November 2025 and March 2026, the

Committee reviewed the detailed results of

the impairment testing for the Group’s CGUs,

with a particular focus on Mead Johnson

Nutrition (MJN) and Biofreeze CGUs.

TheCommittee challenged the key

assumptions which underpinned the Biofreeze

recoverable amounts, including anticipated

category growth, market share improvement,

the commercial success of new product

launches and international market expansion.

The Committee confirmed the key

judgements and estimates made by

management including market expansion and

discount rate and reviewed the sensitivity of

the impairment model to changes in key

assumptions.

In March 2026, the Committee reviewed the

detailed results of the impairment testing in

relation to MJN CGU and challenged the key

assumptions which underpinned the MJN

recoverable amount at 31 December 2025.

This included the effect of changes to the

regulatory environment, net revenue growth

rates, the commercial success of new product

launches, the expansion of speciality nutrition

and the anticipated capital expenditure

programme to upgrade facilities. The evolving

regulatory environment has increased the

judgemental nature of estimating the future

cash flows in relation to capital expenditure,

thereby resulting in increased scrutiny and

focus by the Committee and challenge to

management.

The Committee confirmed the key

judgements and estimates made by

management and reviewed the sensitivities of

the impairment model to reasonable changes

in key assumptions.

The Committee reviewed management’s

disclosures in relation to goodwill, other

intangible assets and related impairment

reviews included within Note 9 and

considered them appropriate.

Tax provisioning

From time to time, the Group may be involved

in disputes in relation to ongoing tax matters

in a number of jurisdictions around the world

where the approach of the local authorities is

particularly difficult to predict. The amount of

uncertain tax position liabilities recorded in

relation to these investigations is an area

where management and tax judgement are

important. The Committee reviewed the key

judgements and conclusions made with

management and considered the level of

recognised uncertain tax position liabilities to

be appropriate.

As required under IFRS, management has

included disclosure in the Financial Statements

outlining the amount of uncertain tax position

liabilities, the methodology by which they

have been recognised and the sources of

estimation uncertainty in relation to these

uncertain tax position liabilities or the

rationale for why sensitivity disclosure is not

meaningful and has not been provided in the

Financial Statements. The Committee has

reviewed these disclosures, included within

Notes 1 and 22, and considers them

appropriate.

Trade spend accruals

Trade spend is a significant cost for the Group,

with the principal accounting judgements

relating to trade accruals, specifically the

timing of recognition and the determination of

management’s best estimate of the amount of

trade spend which will ultimately be incurred.

The Audit Committee focused on the level of

trade spend accruals at the year end to ensure

they are sufficient and appropriate. In addition,

the Committee evaluated the accuracy of

management’s estimation of trade spend

accruals through reviewing the subsequent

utilisation of trade spend accruals which were

originally recorded in the 2024 Financial

Statements.

Legal liability provisioning

At 31 December 2025, a provision of £108

million (2024: £112 million) was held on the

Group’s Balance Sheet in relation to regulatory,

civil and criminal investigations as well as

litigation proceedings.

The Committee has reviewed the status of

potential legal and constructive liabilities

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Audit Committee Report continued

during the year, and at the year end, including

the South Korea Humidifier Sanitiser (HS) issue,

Necrotizing Enterocolitis (NEC), Phenylephrine

(PE), UK Securities Action, and other significant

matters.

The Committee challenged management on

the judgements made in determining the level

of provisions recognised and was satisfied

with the level of provisioning and associated

disclosure for the HS issue, NEC, PE, UK

Securities Action and other significant matters

(see Note 20) and on its exercise of

judgements described in the disclosure.

Other key financial reporting matters

Other key matters reviewed and evaluated in

relation to the 2025 Group Financial

Statements considered by the Committee,

together with a summary of the actions taken,

are set out below.

Going concern and Viability Statement

A viability review was undertaken by

management, encompassing its going

concern review which included the impact of

the disposal of the Essential Home business.

The Committee reviewed and challenged the

key assumptions used by management in its

viability review and going concern

assessment, as well as the scenarios applied

and risks considered.

Based on its review, the Committee considers

that the application of the going concern

basis for the preparation of the Financial

Statements was appropriate and confirmed

the suitability of the Viability Statement

covering a three-year period, as set out on

page 52. The three-year period for the

viability review is the period of the Group’s

long-term forecasting process and covers the

various business cycles.

Internal audit

Role of Internal Auditor

The Committee is responsible for reviewing

and monitoring the effectiveness of the

internal audit function. The SVP Group Audit

and Risk is accountable to the Chair of the

Committee, although for administrative

matters reports to the CFO. The function

operates independently of the Business, with

no responsibility for operational management.

The independence of the SVP Group Audit

and Risk and the internal audit function is

considered as part of the review of the

internal audit function. The SVP Group Audit

and Risk was appointed at the end of March

2025 and has attended Committee meetings

and provided updates in relation to internal

audit and risk.

The function is responsible for providing

independent and objective assurance on the

adequacy and effectiveness of Reckitt’s risk

management and internal control systems. Its

mandate is set out in a written charter,

approved by the Committee, and it uses a

formal internal audit methodology consistent

with the Institute of Internal Auditors’

internationally recognised standards.

The Committee reviews and approves the

internal audit plan and assesses the adequacy

of the function’s budget and resources. The

function brings in specialist skills from external

service providers, as necessary.

The risk-based audit plan focuses on areas

deemed critical to achieving our business

objectives and covers Reckitt’s commercial

businesses, manufacturing facilities,

information systems, programmes and

higher-risk areas and processes. Following

each audit, control weaknesses are reported

to senior management, together with

recommendations and updates. Resulting

management actions are tracked until they

are satisfactorily closed. Audits that identified

significant weaknesses in the control

environment and where rated unacceptable

may receive a follow-up audit within 12 to 18

months, as appropriate.

At each Committee meeting the internal audit

function presents an update which includes

an assessment of the control environment

together with any material issues, the

performance of the internal audit function,

and any other topics as required. A private

session with the Committee is also held at

every meeting.

Risk management

The Committee supports the Board in fulfilling

its oversight responsibilities in ensuring the

integrity of the Group’s financial reporting

(including the Annual Report and Financial

Statements), system of risk management and

internal control, and the relationship with the

External Auditor. The Committee makes

recommendations to the Board in relation to

approval of the Annual Report and Financial

Statements.

The Committee regularly monitors our system

of risk management and internal control

(including internal financial controls). The

finance function, headed by the CFO, has

implemented policies, processes and controls

to enable the Company to review and comply

with changes in accounting standards and

relevant financial regulations. These policies,

processes and controls are kept under review

on an ongoing basis to ensure both internal

and external developments are reviewed and

acted upon.

In monitoring the integrity of financial

reporting and any other risks falling within its

remit, the Committee receives regular reports

from the SVP Group Controller & Head of Tax,

Chief Ethics and Compliance Officer and SVP

Group Treasurer on material developments in

the regulatory, legislative and fiscal landscape

in which the Group operates. It also receives

reports on IT and cyber security risks and

controls and on the Group’s whistle-blowing

arrangements.

The Committee reported to the Board in

March 2026 that it considers the internal

control framework to be functioning

appropriately, to enable the Board to meet its

obligations under section 4 of the Code, to

maintain sound risk management and internal

control systems, and to report to shareholders

on these in the Annual Report (see page 116).

The basis for the preparation of the Group

Financial Statements is set out on page 137

under Accounting Policies.

The External Auditor’s Report, setting out its

work and reporting responsibilities, can be

found on pages 117-132. The terms, areas of

responsibility and scope of the External

Auditor’s work are agreed by the Committee

and set out in the External Auditor’s

engagement letter.

More information on the Group’s principal and

emerging risks and strategy for growth and

achieving targeted goals is detailed in the

Strategic Report, which can be found on

pages 48-51.

The Viability Statement can be found on

page52.

The Statement of Directors’ Responsibilities

on page 116 details the Directors’

responsibilities for the Financial Statements,

for disclosing relevant audit information to the

External Auditor and for ensuring that the

Annual Report is fair, balanced and

understandable.

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Audit Committee Report continued

Internal controls framework

Internal control processes are implemented

through clearly defined roles and

responsibilities, supported by clear policies

and procedures, and delegated to the GEC

and senior management. Reckitt operates a

‘three lines of defence’ model in monitoring

internal control systems and managing risk:

1. Management in the first line ensures that

controls, policies and procedures are

followed indealing with risks in day-to-day

activities. Such risks are mitigated at source

with controlsembedded into relevant

systems andprocesses. Supervisory

controls, either atmanagement level or

through delegation, ensure appropriate

checks and verifications take place, with any

failures dealt with promptly. Throughout

Reckitt, a key responsibility for any line

manager is to ensure the achievement of

business objectives with appropriate risk

management and internal control systems.

2. Each function and business has its own

management which acts as a second line of

oversight. This second line sets the

local-level policies and procedures, specific

to its own business environment, subject to

Group policy and authorisation. The second

line further actsin an oversight capacity

over the implementation of controls in the

first line. Thefinancial performance of each

business ismonitored against pre-approved

budgets and forecasts ultimately overseen

by executive management and the Board.

As part of the second line, the corporate

control team identifies material financial

risks and ensures that these are mitigated

by appropriate internal controls, set out

through an established global financial

control framework.

The effectiveness of the global financial

control framework is reviewed annually.

Further, the Group’s compliance controls

include the operation of an independent

andanonymous ‘Speak Up’ whistle-blowing

hotline, annual management reviews and

theprovision of training specific to

individual needs within the Business.

3. The third line of defence is provided by

theinternal audit function which provides

independent and objective assurance to

management and the Committee on the

adequacy and effectiveness of risk

management systems and internal controls

operated by the first and second lines of

defence. Internal audit also facilitates the

riskmanagement process.

Reckitt’s internal control framework provides

assurance that business objectives are

achieved, that business is conducted in an

orderly manner and in compliance with local

laws, that records are accurate, reliable and

free from material misstatement, and that

risks are understood and managed.

The corporate control team is accountable

formanaging global financial control policies

and frameworks and for monitoring the

effectiveness of the Group’s internal financial

control environment. As part of this, the

corporate control team is responsible for

reporting and monitoring controls at local,

area and global levels, working with markets

to improve risk and controls capability and

tosupport the development of remediation

plans and corrective actions for financial

control weaknesses.

Over recent years, the Company has

established a multi-year controls

transformation programme. Alongside

meeting requirements of the Code, the

programme has aimed to embed a control-

focused culture to help strengthen internal

controls across the Group. The transformation

programme involved three key elements: (i)

redefining the global financial controls

framework, to ensure focus on the most

material risks faced by the Company; (ii)

remediating controls previously found to be

lacking; and (iii) a comprehensive testing

programme to validate that remediation

activities have been effective, and to support

the programme’s conclusions.

As a result of the above activities, and

supported by the 2025 testing results, the

corporate control team has concluded

thatthe framework is operating effectively.

Asaresult, management anticipates that the

controls transformation programme will

beconcluded in 2026.

At each meeting, the Committee has

reviewed a report outlining the status of

thecontrols transformation programme, the

results of testing remediation progress and

other notable controls activity since the

previous meeting.

Cyber security and information

technology controls

In common with all businesses, Reckitt faces

therisk of disruption from cyber attack or

otherfailure of information technology systems

that would impact our ability to operate the

Business. Reckitt’s cyber security function

operates technologies and processes to protect

Reckitt’s systems and data, and to detect,

respond and recover from such attacks.

External consultants are also engaged to

assess our maturity against the US National

Institute of Standards and Technology (NIST)

Cybersecurity Framework, which supports

prioritisation of our ongoing programme to

improve cyber security defences in the face

of an evolving threat landscape. Information

technology controls for access management,

change management, IT operations

management and third-party operations for

key systems have been implemented. The

monitoring of these controls is integral to

Reckitt’s internal controls framework and

supports the identification of any system

andprocess weaknesses so that corrective

actions can be implemented.

Internal Auditor effectiveness review

The Committee monitors the effectiveness of

the internal audit function throughout the year

through the internal audit attendance at

Committee meetings, review of audit plans

and reports and review of work presented.

As part of this oversight, the Committee

considered a range of factors, including the

quality and scope of audit work, the skills,

experience and resourcing of the internal

audit team, the effectiveness of

communication and reporting, and the

independence and objectivity of the function.

Based on this ongoing review, the Committee

is satisfied that the quality of the internal audit

function remains high and that it continues to

operate with appropriate independence and

objectivity.

The Committee has reviewed the

effectiveness of the function and remains

satisfied that the resourcing, quality,

experience and expertise of the function are

appropriate for the Company and that the

function was objective and performed its role

effectively.

An external quality assessment of the internal

audit function is currently underway in

accordance with professional standards, with

conclusions expected in the first quarter of

2026. The Committee will consider the outcome

of the assessment once it has been completed.

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Audit Committee Report continued

External Auditor

The Committee is responsible for maintaining

the relationship with the External Auditor on

behalf of the Board. The Company’s External

Auditor is KPMG LLP (KPMG).

For the year ended 31 December 2025, the

Company has complied with the Competition

and Markets Authority Order: The Statutory

Services for Large Companies Market

Investigation (Mandatory use of Competitive

Tender Processes and Audit Committee

Responsibilities) Order 2014.

The Committee considers and makes a

recommendation to the Board in relation to

the appointment, re-appointment and

removal of the External Auditor, taking into

account independence, effectiveness, lead

audit partner rotation and any other relevant

factors, and oversees the tendering of the

external audit contract.

The Committee approves the External

Auditor’s terms of engagement and

remuneration and reviews the strategy and

scope of the audit and the work plan.

The Committee also monitors the rotation

ofthe lead audit partner every five years in

accordance with the FRC’s Ethical Standard.

Thecurrent lead audit partner, Zulfikar Walji, has

completed his first year as lead audit partner.

Tender process

In 2024, the Committee began a tendering

process for both the Group and subsidiaries

Financial Statements audit to enable the

selection of an Auditor. The Committee

committed to a fair, open and transparent

process and reviewed and approved the

process, timetable and information

requirements, which followed best practice

corporate governance requirements, including

all relevant FRC guidance on audit tendering.

Three of the big four audit firms and two

challenger firms were invited to participate

inthe tender. PwC, Deloitte and KPMG were

able and willing to tender for the audit.

TheCommittee reviewed and approved the

selection criteria which covered FRC Audit

Quality Reviews, expertise of the proposed

global audit teams, audit methodology and

use of audit technologies. The process

focused on the quality criteria, in line with the

FRC guidance.

The firms met with senior finance and

business management across Reckitt

functions over a period of three months and

the firms were provided with access to an

online data room of relevant information.

The three firms provided written proposals

and gave presentations to, and answered

questions from, the Audit Committee on their

audit approach, quality and the team. The

presentation team included specialist partners

and their audit transition teams. The Committee

discussed the tender process with management

and reviewed management’s qualitative and

quantitative assessment of the firms based on

the selection criteria. Following that discussion,

the Committee recommended, and the Board

endorsed, the appointment of PwC as the

next External Auditor. Recognising the good

progress being made on Reckitt’s transformation

and to ensure continued focus thereon, it has

been decided that KPMG will remain External

Auditor for the 2026 reporting cycle with a

transition to PwC taking place in 2027.

A resolution will be put to shareholders at the

2027 AGM to approve this appointment. It is

intended that KPMG will continue as the

Group’s Auditor for the year ending 31

December 2026 and will cease to hold office

at the conclusion of the Company’s 2027 AGM.

The recommendation to appoint PwC was

free from influence by a third party and no

contractual term of the kind mentioned in

Article 16(6) of the Audit Regulation has been

imposed.

External Auditor effectiveness review

The annual evaluation of the External Auditor

was carried out in early 2025 and the results

were reported to the Committee in May.

Theassessment of the External Auditor was

conducted using a survey circulated to the

Board, GEC, finance and other functional

leadership and local finance management. The

survey covered the four competency areas in

the FRC’s Guidance on Audit Quality: practice

aid for Audit Committees (published in

December 2019): judgement; quality control;

skills and knowledge; and mindset and culture.

Besides the annual evaluation of the External

Auditor, the Committee continually reviews

the External Auditor’s effectiveness through

means such as the monitoring of its progress

against the agreed audit plan and scope.

KPMG reports to the Committee annually with

an audit quality scorecard, providing a holistic

view of, and its investment in, audit quality

and how it measures its audit quality progress.

External Auditor fees and non-audit

services

The Committee reviews the nature and level of

non-audit services undertaken by the External

Auditor during the year to satisfy itself that

there is no impact on its independence. The

Committee is required to approve all non-

audit services. The Board recognises that in

certain circumstances the nature of the

service required may make it timelier and

more cost effective to appoint a party that

already has a good understanding of Reckitt.

The total fees paid to KPMG for the year

ended 31 December 2025 were £28.5 million,

of which £8.5 million related to non-audit and

audit-related work (to which KPMG was

appointed principally for the above reasons).

The Group’s internal policy on non-audit fees

(effective 1 January 2017) states that, on an

annual basis, non-audit fees should not

exceed 50% of the Group’s external audit

andaudit-related fees for the year.

TheBoardconfirms that, for the year ended

31December 2025, non-audit and audit-

related fees were 43% of the audit fees.

Details of services provided by the External

Auditor are set out in Note 4 on page 146.

Independence and appointment

Reckitt has a formal policy in place to

safeguard the External Auditor’s

independence.

The Group has a policy that restricts the

recruitment or secondment of individuals

employed by the External Auditor into

positions that provide financial reporting

oversight where they could exercise influence

over the financial or regulatory statements of

the Group or the level of audit and non-audit

fees. Other than the provision of advisory

services to a Director in their personal

capacity, KPMG had no connection with the

Directors during the financial year.

The External Auditor is a key stakeholder in

helping the Committee fulfil its oversight role

for the Board. The Committee remains

satisfied with the External Auditor’s

independence and effectiveness. The

Committee and Board’s endorsement of

KPMG LLP as Auditor for the financial year

ending 31 December 2026 was free from

third-party influence and there was no

contractual term of the kind mentioned under

Regulation (EU) No 537/2014 imposed on the

Company.

In accordance with section 489 of CA 2006,

resolutions to propose the re-appointment of

KPMG LLP as the Company’s External Auditor

and to authorise the Committee to fix its

remuneration will be put to shareholders at

the AGM on 21 May 2026.

Andrew Bonfield

Chair of the Audit Committee

Reckitt Benckiser Group plc

4 March 2026

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

COMPLIANCE

COMMITTEE REPORT

Member Meetings attended

Pat Verduin Chair and member from July 2025 2/2

Kris Licht Member for the whole year 4/4

Marybeth Hays Member for the whole year 4/4

Stefan Oschmann Member for the whole year 3/4

Mehmood Khan (Chair) Chair and member until July 2025 3/3

Key objectives for the year ahead

• Review the remit and activities of the

Committee within the broader Reckitt

governance framework

• Monitor and prepare for future

developments in product regulation,

product quality and safety, and legal and

compliance requirements, and review

internal processes, policies and

procedures to ensure compliance

The Committee receives briefings from the key

functional teams to enable it to discharge its

oversight responsibilities and works with the

Audit Committee as needed.

On behalf of the Board, I am

pleased to present the Compliance

Committee Report for the financial

year ended 31 December 2025.

This report details how the Committee has

discharged its roles and responsibilities during

the year.

Committee priorities for 2026

• Continually review and update the Board on

Reckitt’s quality, safety, compliance and

regulatory responsibilities

• Monitor and review the processes for risk

assessment of key principal risks including

in relation to product regulation, product

quality and safety and legal and compliance

• Keep abreast of market conditions and

maintenance of products in the current

global political and economic landscapes

Committee membership

Members of the Committee are appointed

bythe Board on the recommendation of the

Nomination Committee, which reviews

membership in terms of skills, knowledge

andexperience.

Mehmood Khan stepped down as Chair of the

Committee in July when he resigned from the

Board. I would like to take this opportunity

tothank Mehmood for his valuable input to

the Committee.

I joined the Committee inJuly and took over

as Chair of the Committee following

Mehmood’s departure. Kris Licht and Marybeth

Hays remained as members during the year

and Stefan Oschmann joined the Committee

in February 2025.

On joining the Committee and during their

tenure, members receive an induction tailored

to their individual requirements. This includes

meetings with internal management

responsible for Compliance Committee

matters. All members of the Committee

receive regular briefings from senior

executives on matters covering governance,

regulatory and legislative developments,

product safety and ethics-related matters,

along with updates on Reckitt’s practices and

policies in these areas.

During the year, the Deputy Company Secretary

acted as Secretary to the Committee.

Meetings

In 2025, the Committee held four meetings.

Meetings usually take place ahead of Board

meetings and the Chair of the Committee

reports formally to the Board on the

Committee’s activities. The CFO, Chief R&D

Officer, General Counsel & Company Secretary,

Chief Supply Officer, Chief Ethics and

Compliance Officer, SVP Regulatory Affairs &

Global Safety Assurance, and SVP Head of

Global Quality regularly attend meetings. Other

Board Directors are invited to attend all

meetings, and other senior management attend

when deemed appropriate by the Committee.

Areas of focus Further detail Pages

Legal compliance and ethics Risk management 48-51

Section 172 Statement 68

Audit Committee Report 74-81

Product safety and quality Business model 7-23

Stakeholder engagement 65-67

R&D and regulatory compliance Risk management 48-51

Pat Verduin

Chair of the Compliance Committee

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

All Board members are provided with copies of

Committee papers andminutes.

In addition to reviewing matters at Committee

meetings, the Committee Chair held regular

meetings with our CEO, Chief R&D Officer, Chief

Supply Officer and Chief Ethics and Compliance

Officer, to review progress against the strategy

and to represent the Board in supporting the

compliance efforts in these critical areas.

Committee effectiveness review

This year, an external effectiveness review

ofthe Committee was conducted as part

ofthe Board’s overall effectiveness review

(see page 64). The Committee is a key

component of the governance framework

which provides oversight and review of

product regulation, product quality and safety,

legal and compliance risks, policies,

programmes and activities and provides the

Board with insight into the challenges

management faces in these areas and the

mitigations in place.

Compliance Committee Report continued

Key activities during 2025

• Reviewed cases received and

investigated as part of the Speak Up

system

• Continued monitoring the requirements

for implementation of the EU Green

Deal

• Received updates on the impacts of

key product safety and regulation risks

• Reviewed enhancements to third-party

compliance processes

• Considered the ongoing work to

simplify Group policies

• Undertook a deep dive on the

Ingredient Steering Group

• Reviewed the Committee’s terms

ofreference

• Received an employee safety

presentation

The Board, having had sight of the results of the

Committee’s performance review, considers the

Committee to be operating effectively.

Role of the Committee

The Committee is part of the Group’s

governance framework and supports the Board

in fulfilling its oversight responsibilities in

ensuring the integrity of the Group’s product

regulation, product quality and safety, legal and

compliance policies, programmes and activities.

Its role and responsibilities are set out in its

terms of reference, which can be found at

reckitt.com/investors/corporate-governance,

and are reviewed by the Committee annually.

The Committee’s terms of reference were

approved by the Board in November 2025.

The Audit Committee has a monitoring function

in respect of risk management and internal

control systems, which also includes the

assurance framework established by

management to identify and monitor risks

identified by the Compliance Committee. The

Committee liaises with the Audit Committee and

Marybeth Hays is a member of both Committees.

Responsibilities of the Committee

The Committee reviews the following areas

throughout the year as part of its remit and

responsibilities, in accordance with its terms

ofreference and in the context of the Group’s

principal risks:

• Overseeing, assessing, monitoring and

recommending policies, processes and

procedures relating to health and safety,

andproduct quality, and compliance

matters (including anti-bribery, competition

law, dataprivacy, trade sanctions, anti-

money laundering, regulatory and quality

risk assurance and restrictive trade

practices and ethical conduct), ensuring

they align with the Company’s culture,

purpose and values

• In conjunction with the Audit Committee,

reviewing the Company’s whistle-blowing

arrangements, including the adequacy and

security for the workforce to raise concerns

about the possible wrongdoings in financial

reporting or other matters

• Receiving and reviewing reports regarding

investigations of allegations raised through

the Speak Up system

• Monitoring and reviewing processes for

riskassessment for product quality and

compliance matters and ethical conduct

• Reviewing mitigating actions for product

quality and compliance risks and receiving

reports on the progress of risk mitigation

• Receiving reports from management in

respect of ethics and compliance and

investigating and taking action in relation to

issues raised or reported

Pat Verduin

Chair of the Compliance Committee

Reckitt Benckiser Group plc

4 March 2026

Hull factory, UK

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

DIRECTORS’

REMUNERATION REPORT

On behalf of the Board, I am

pleased to present the Directors’

Remuneration Report for

thefinancial year ended

31December2025.

Having joined the Remuneration Committee in

2024, I was delighted to be appointed as Chair

following the 2025 AGM. I would like to extend

the Board’s and my thanks to Mary Harris, who

was Chair of the Committee up to the AGM,

for her excellent stewardship in the role.

We were extremely pleased with the level of

shareholder support for our new Directors’

Remuneration Policy and our 2024 Annual

Report on Remuneration at our AGM in May

2025, which received votes in favour of 94%

and 96% respectively. I would like to thank

shareholders for their time taken in providing

feedback to the Committee as we developed

the Policy.

Performance for the year under review

and strategic context

2025 was a year of strong strategic and financial

delivery, ahead of expectations. We are

delivering against our refreshed strategy,

announced in July 2024, and progressing on our

objective to be a world-class consumer health

and hygiene company. Reckitt’s new operating

structure has sharpened focus, delivering

improved execution with continued market

share gains and volume momentum. The

divestment of Essential Home marked an

important step in the delivery of our strategy

and delivered a strong outcome for the Group

and our shareholders. We achieved like-for-like

net revenue (LFL NR) growth of +5.0%, a

step-up from 2024, led by Core Reckitt at +5.2%

LFL NR growth. Our adjusted operating profit

grew by +5.3% (at constant FX), contributing to

a further year of EPS growth. Share price

performance was also strong, creating over

£9.5 billion of shareholder value, including a

progressive dividend increase of 5% and our

continued share buyback programme which

returned £0.9 billion to our investors. The special

dividend following the completion of the

Essential Home divestment delivered a further

£1.6 billion to shareholders. Overall, the financial

performance delivered in 2025 demonstrates

the progress we are making with our strategy.

We are confident that continued execution will

deliver further growth and value creation.

Contents of Directors’ Remuneration Report

84 Letter from the Chair

87 Remuneration at a glance

• Remuneration outcomes for 2025

• Remuneration at Reckitt

• Summary of our Remuneration Policy

90 Remuneration Committee governance

91 Annual Report on Remuneration

105 Additional remuneration disclosures

Fiona Dawson, CBE

Chair of the Remuneration Committee

Member Scheduled meetings attended

Fiona Dawson (Chair) Member for the whole year and Chair since May 2025 3/3

Sir Jeremy Darroch Member for the whole year 3/3

Mahesh Madhavan Member since February 2025 2/3

Stefan Oschmann Member since July 2025 1/1

Mary Harris Chair and member until May 2025 1/1

Central to our remuneration philosophy are the

principlesof pay-for-performance and shareholder,

aswell as strategic, alignment.

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

2025 annual bonus

Reckitt operates an annual bonus plan that is strongly aligned to performance, measured against

targets of net revenue and adjusted profit before income tax, with a downward modifier based

on net working capital (NWC). Net revenue performance for the year was in line with our

guidance range. Against our stretching target range this was between threshold and maximum

and resulted in a multiplier for LFL NR of 1.12x. Our Fuel for Growth programme is delivering fixed

cost

reductions, fuelling investments and enhancing our capabilities across functions, and

helped us achieve our goal of growing adjusted operating profit ahead of net revenue. Profit

before tax performance resulted in a multiplier of 1.55x for this measure. Net working capital

performance achieved the maximum target resulting in a multiplier of 1.0x.

Every year the Remuneration Committee carries out an assessment of performance in the round

before finalising the formulaic outcome from the annual bonus and long-term incentive. As set

out in the 2024 Directors’ Remuneration Report, the assessment of the 2025 annual bonus

specifically included consideration of performance in relation to the execution and delivery of

the refreshed strategy. This is a multi-year strategic programme and considerable progress has

been made during 2025. The Committee considered the following as part of its assessment:

• Corporate restructuring – the embedding of our simplified operating model which gives us

the foundations to unlock sustainable, long-term growth

• Essential Home - the successful divestment of Essential Home, delivering a very strong

outcome for shareholders and enabling a focus on our core portfolio of high-growth, high-

margin Powerbrands

• Mead Johnson Nutrition – the strong performance and resilience of MJN positioning the

business for sustained future performance

£9.5bn Shareholder value generated

Market capitalisation as

at 1 January 2025 (£bn)

Share value as at

31December 2025 (£bn)

423230 3634 38 40

0.91.47.233.2

33.2

Market capitalisation Increase in market capitalisation Dividends paid in 2025 Share buybacks

The Committee also considered the very strong shareholder experience this year, which saw the

creation of £9.5 billion of shareholder value as well as the further £1.6 billion of cash delivered to

shareholders through the special dividend paid in February 2026 following the successful

completion of the Essential Home divestment.

Based on the assessment of performance in the round, in particular the very successful

execution and delivery of the refreshed strategy, and following consultation with investors

representing over 50% of our shareholder base, an adjustment of +7% of the maximum

opportunity was applied to the bonus outcome.

In this context, the Committee believes that the resultant bonus outcome, equivalent to 56% of

maximum is aligned to the overall performance of the Business and the management team, and

is aligned to the shareholder and wider stakeholder experience.

One-third of bonus payments to Executive Directors are deferred into Reckitt shares for three

years in line with the Policy.

2023–2025 LTIP

As a result of consistent performance over the three-year period, NR growth was at 2.8%p.a.

and resulted in vesting of 41% of this element. Return on capital employed (ROCE) performance

was strong at 15.6%, towards the upper end of the target range, with vesting of 84% of this

element. TSR performance was between median and upper quartile with Reckitt ranked 8.13

against our peer group of 20 companies, resulting in a vesting of 60% for the TSR element. We

have exceeded both our Sustainability targets, achieving a 73% reduction in Scope 1 and 2

greenhouse gas emissions in 2025, beyond our 2030 65% science-based target by several years,

and delivering 37.9% of our net revenue from more sustainable products, as defined by our

Sustainable Innovation Calculator. Both these elements of the LTIP exceeded the maximum

target range and resulted in full vesting under these measures. As set out on page 95, the

overall outcome is that 63% of the award vests.

The Committee reviewed the formulaic LTIP outcome in the round and determined that it is

appropriate in the context of the overall performance of the Group over the performance period

and is aligned to the shareholder and wider stakeholder experience over this period.

In line with our Policy, there is a further two-year holding period attached to vested LTIP awards.

Implementation in 2026

Base salary

The CFO will receive a salary increase of 4%, in line with the increase awarded to the wider UK

workforce.

As noted in the 2024 Directors’ Remuneration Report, the Committee was mindful that the

CEO’s salary had fallen materially below the lower quartile of the FTSE 30 (excluding financial

services) and therefore reviewed the positioning for 2026. Kris, alongside the rest of Reckitt’s

management team, is highly sought after given our recent performance and execution of the

strategy to be a world-class consumer health and hygiene company. Since his appointment as

CEO, Kris’ performance has been exceptional, and he is critical to the execution of the strategy.

Kris was hired on a salary at the lower end of the salary range, did not receive a salary increase

for 2024, and received a salary increase in line with the UK wider workforce for 2025.

Taking all of this into account, whilst we remain committed to ensuring the overall package is

weighted to the performance-based elements, the Committee has decided to make an

adjustment to the CEO’s salary to ensure that it is commensurate to the scope of the role, his

experience, and the performance of the individual and the Group. Acknowledging general

shareholder views, the Committee has decided to phase the salary adjustment over two years

rather than making a more material, one-off adjustment this year.

Directors’ Remuneration Report continued

1 Adjusted and other non-GAAP measures, definitions and terms are defined on page 203

£bn

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Directors’ Remuneration Report continued

Following consultation with investors representing over 50% of our shareholder base, the

Committee awarded the CEO a salary increase of 8% for 2026, representing a 4% increase in line

with the wider UK workforce and an additional 4% adjustment.

This is consistent with the approach we take below Board. Our salary ranges are based around

market median. On promotion, employees are typically appointed with an initial salary at the

lower end of the salary range. Increases are then made to progress through the range based

on performance and experience gained in the role.

Following this increase, the salary for KrisLicht remains below the current lower decile of the

FTSE 30 (excluding financial services) and the Committee therefore intends to make another

adjustment next year, subject to continued performance.

FTSE 30 (excl. FS) CEO salary

Upper quartile £1,498k

Median £1,415k

Lower quartile £1,357k

Lower decile £1,273k

Reckitt (2025) £1,144k

Reckitt (2026) £1,236k

The Committee also considered the levered impact that the increased salary will have on the

total remuneration package. As LTIP awards are made as a fixed number of performance shares

and performance options, this adjustment does not impact LTIP award levels. This means that

the overall package remains below our desired positioning against the FTSE 30 (excluding

financial services). The total package also remains conservatively positioned versus our global

FMCG peer group where we compete for the best global talent with the largest global

companies. This will be kept under review.

Annual bonus

There are no changes to the bonus opportunities, performance measures and weightings for

theCEO and CFO. As with every year, the Committee will continue tocarry out an assessment

of wider performance in the round before finalising thebonus outcome. As the execution

anddelivery of the refreshed strategy isamulti-year programme, similarly to the 2025 annual

bonus, the assessment for 2026 will include consideration of progress made inimplementing the

refreshed strategic priorities and transformation and the Committee may make an upwards

ordownwards adjustment to reflect this.

LTIP

There are no changes to the 2026 LTIP awards, including award levels, performance measures

and weightings. Further details are set out later in this report. To reflect the divestment of

Essential Home, which was completed in December 2025, adjustments have been made to

thetargets for the in-flight 2024–2026 and 2025–2027 LTIP awards to reflect the modified

business structure.

Themethodology for these adjustments aligns with the approach taken for previous divestments

and with generally accepted shareholder principles where there has beenmaterial portfolio

management. Theadjustments ensure that performance ismeasured on a like-for-like basis and

that thetargets maintain the same level of stretch as when originally set. Full details of the

adjustments for each award cycle, as well asthe original targets, are set out later inthisreport.

NED fees

During the year, the fees for the Chair andNon-Executive Directors (NEDs) were reviewed,

taking into account the time commitment required to meet the scope andresponsibilities of the

roles, the increases given to the wider workforce and market practice. Following this review, the

fee for theChair was increased to £760,000, effective from 1 January 2026, positioning the fee

around the median of the FTSE 30 (excluding financial services). The basic NED fee was

increased by c.3.5% to £119,000. The additional fees for membership of Board Committees are

unchanged. For 2026, an additional fee of £22,500 has been introduced for membership of the

Nomination Committee, to align with the additional membership fees for the other Board

Committees. 25% of the fees for the Chair and NEDs continues to be paid in shares.

Context for remuneration of the wider workforce

Reckitt is committed to fair and consistent reward policies for its employees, aligned with our

Compass, remuneration philosophy and culture. The Remuneration Committee reviews various

aspects of workforce remuneration and related policies regularly.

As noted in the 2024 Directors Remuneration Report, the wider Reward and HR team, with the

Remuneration Committee, undertook a review of multiple elements of reward including salary

structures, performance management, bonus design, LTIP and benefits. Throughout 2025, we

have begun to see the impact of these changes which were designed to strengthen our

performance culture whilst ensuring our colleagues remain purpose-led and values-driven.

The updated elements of reward operate alongside several other initiatives we already have in

place for employees, further detail of which is provided later in this report. In particular, in 2025

Reckitt continued to be an Accredited Living Wage employer and we allow employees to share

in the Company’s success through our all-employee share plans. These plans are offered to over

89% of our employees, where local legislation permits, and as of the 2025 year end over 11,500

employees were participating in one of our share plans, fostering our culture of ownership and

shareholder alignment.

Conclusion

On behalf of the Committee, I thank shareholders for their continued engagement during the

year. I hope this report provides a clear explanation of our remuneration decisions and I look

forward to your support at the AGM on 21 May 2026.

Fiona Dawson

Chair of the Remuneration Committee ReckittBenckiser Group plc

4 March 2026

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

REMUNERATION AT A GLANCE

Variable pay outcomes

APP value

Kris Licht

£1.66mn

LTIP value

Bonus paid in cash Bonus paid in shares

Shannon Eisenhardt

Kris Licht

£0.92mn£1.83mn

£0.55mn£1.10mn

56% of max

63% vesting

Directors’ Remuneration Report continued

Remuneration outcomes for 2025

Shannon Eisenhardt

£1.18mn

2025 single figure

Fixed remuneration Annual bonus (cash) Annual bonus (shares) LTIP

Shannon Eisenhardt

Kris Licht

£3.87mn

£5.80mn

0 1 2 73 4 5 6

£mn

Performance shares Performance options

£0.02mn

Shareholding at 31 December 2025

0 50,000 100,000 150,000 200,000

Shannon

Eisenhardt

Kris Licht

Shareholding

requirement

Current

shareholding

Shareholding

requirement

Current

shareholding

No. of shares

£1.69mn

£6.30mn

Value based on the average closing share price in Q4 2025 of £58.73

See pages 91-95 for more details

See page 96 for more details See page 97 for more details

See pages 95-96 for more details

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Directors’ Remuneration Report continued

Remuneration at Reckitt

Reckitt aims for leading global performance.

Our strategy focuses on growth and long-

term sustainable value creation, and our

remuneration principles are aligned to this.

Our management team is multinational, and

we compete for talent globally. Central to our

remuneration philosophy are the principles of

pay-for-performance, shareholder alignment,

strategic alignment and rewarding the right

behaviour. Combined with our Compass and

business model, these principles support our

long-established high-performance and share

ownership culture, driving accelerated growth

and supporting long-term value creation.

To reinforce our philosophy, the majority

oftheExecutive Directors’ remuneration

packages consist of variable at-risk pay, linked

to challenging targets that align with our

strategy and are largely delivered in Reckitt

shares. Additionally, we have shareholding

requirements for Executives amongst the

highest in the UK market. This approach is

cascaded throughout our senior leadership.

Reckitt’s Compass

Own

Deliver

CreateCare

Do the

right thing.

Always.

See page 17 for more details of our Company strategy

Pay for

performance

Strategic

alignment

Shareholder

alignment

Reckitt’s strategy

Portfolio value creation Product superiority

Winning in market Fixed cost optimisation

Reward the right

behaviour

Remuneration philosophy

The tables below illustrate the remuneration principles at Reckitt, which are driven by our

Compass, strategy and the remuneration philosophy.

1 Recruit, retain and develop the best

global talent

• Engage highly performance-driven individuals

• Deliver globally competitive pay practice

across our industry peer group

2 Ensure high-performance culture

• Drive sustainable outperformance and

shareholder value

• A high proportion of variable pay with

stretching performance targets

3 Culture of ownership

• Market-leading share ownership

• Align the interests of management and

shareholders

In-employment shareholding requirement

Number

of shares

Value

of shares (£)

% of 2025

annual salary

CEO 200,000 11,746,000 1,027%

CFO 100,000 5,873,000 709%

Post-employment shareholding requirement

Number

of shares

Value

of shares (£)

% of 2025

annual salary

CEO 100,000 5,873,000 513%

CFO 50,000 2,936,500 354%

Based on the average closing share price in Q4 2025 of £58.73

Reflecting 50% of the in-employment shareholding requirement

4 Ensure alignment with strategy across

the Business

• Alignment of performance metrics with

strategic priorities

• Alignment across the Business of metrics

and ownership

Summary of our Remuneration Policy

Year 1 Year 2 Year 3 Year 4 Year 5 Up to Year 10

Fixed pay

Annual bonus

(APP)

LTIP

Shareholding

requirements

Fixed

pay

APP

(cash)

17%

LTI P

67%

APP

(shares)

Variable

pay

93%

Salary 6%

Pension 1%

Maximum CEO pay under the Remuneration Policy

Note: Value of the CEO’s maximum 2026 package. This illustrates

fixed remuneration plus full payout of the annual bonus (APP) and

full vesting of the LTIP awards including 50% share price growth

Two-thirds paid in cash; one-third in Reckitt

shares deferred for three years

No further performance conditions

Performance shares and performance shareoptions

Three-year performance period

Period of eight years from appointment to achieve requirements

Two-year shareholding requirement post-departure

Two-year holding period

No further performance conditions

10-year life for options from grant

Salary, benefits

and pension

One-year

performance

period

1 Adjusted and other non-GAAP measures, definitions and terms are defined on page 203

Reckitt Annual Report and Accounts 2025

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Directors’ Remuneration Report continued

Summary of our Remuneration Policy

The table below summarises the current Directors’ Remuneration Policy, approved at the AGM in May 2025, which can be found on pages 103-109 of the 2024 Annual Report and is also available on

our website in the Corporate Governance section.

Element Key features of operation of proposed Policy How we will implement for 2026 Link to strategy

Salary, benefits and pension • Salary increases and pension

contribution set in context of wider

workforce

• Salaries and benefits set competitively

against peers

• For the CEO an 8% salary increase. A 4% salary increase for the

CFO, in line with wider UK workforce

• Pension contribution, or equivalent cash allowance, currently 10%

of salary, in line with the wider workforce in the UK

• To enable the total package to support

recruitment and retention

Annual bonus (APP) • Target bonus of 120% of salary for CEO

and 100% for CFO

• One-third deferred into awards over

Reckitt shares for three years

• Malus and clawback provisions apply

• Award opportunities unchanged

• Targets set for net revenue and adjusted profit before income tax

• NWC target to act as a downward modifier

• Threshold performance results in zero payout, with maximum of

3.57x target for truly exceptional performance on all three

metrics

• Remuneration Committee assessment of performance in the

round, including consideration of progress made in implementing

the refreshed strategic priorities and transformation

• To drive strong performance, with significant

reward for overachievement of annual targets

linked to Reckitt’s strategic priorities

• Use of deferral for longer-term shareholder

alignment

LTIP

Performance shares and

performance share options

• Three-year performance period and

two-year holding period

• Malus and clawback provisions apply

• Options have approximately seven

years to exercise post-vesting

• Award levels unchanged:

– CEO: 87,500 performance shares and 175,000 performance

options

– CFO: 42,500 performance shares and 85,000 performance

options

• Targets set for LFL net revenue growth (40% weighting); ROCE

(25% weighting); relative TSR (25% weighting); sustainability (10%

weighting)

• Performance conditions are applied to both performance share

options and performance shares

• Remuneration Committee assessment of performance in the

round

• To incentivise and reward long-term

performance and align the interests of

Executive Directors with those of

shareholders

• Two-year holding period for longer-term

shareholder alignment

Shareholding requirements • Period of eight years from appointment

to achieve

• Two-year shareholding requirement

post-departure

In-employment shareholding requirement:

• CEO: 200,000 shares

• CFO: 100,000 shares

Post-employment shareholding requirement equal to the lower of

50% of the in-employment requirement or their actual shareholding

on departure

• Promotes long-term alignment with

shareholders

• Promotes focus on management of corporate

risks

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Directors’ Remuneration Report continued

Remuneration Committee governance

Committee membership and meeting attendance

During the year the Committee held three scheduled meetings. The attendance of members at

meetings is set out in the table on page 84. In addition, one non-scheduled meeting was held in

December 2025.

The Chief Human Resources Officer was Secretary to the Committee throughout the year.

Meetings were also attended by the CEO, CFO and SVP Reward by invitation. Deloitte was the

appointed advisor to the Committee throughout the year. Members of the Remuneration

Committee and any person attending its meetings do not participate in any discussion or

decision on their own remuneration.

The Committee’s role and key activities during the year

The Committee’s purpose is to assist the Board of Directors in fulfilling its oversight

responsibility by ensuring that the Remuneration Policy and practices reward fairly and

responsibly, are designed to support the strategy and long-term success of the Company

andtake account of the generally accepted principles of good governance.

Malus and clawback

The Committee has the discretion to apply malus and/or clawback in relation to awards under

the annual bonus, Deferred Bonus Plan or the LTIP inthe circumstances set out in the relevant

plan rules and award documentation, which currentlyincludes:

• A material misstatement of the Company’s financial results

• Gross misconduct by a participant (or serious misconduct in relation to malus). This includes

reputational damage as a result of the misconduct

• An erroneous calculation in assessing the number of shares subject to an award or the payout/

vesting outcome

• Corporate failure of the Company

In these circumstances, the Committee may adjust the amount of cash bonus payable and/or

operate clawback of the annual bonus for up to three previous years. Deferred bonus awards

are subject to malus and clawback until the third anniversary of grant and the clawback period

applicable to LTIP awards ends on the fifth anniversary of the date of grant. The Committee

considers these time horizons appropriate as they align with our annual bonus deferral period

and the combined performance and holding period under the LTIP and provide sufficient time

for any potential circumstances to arise.

In line with the new UK Corporate Governance Code requirements, the Committee also confirms

that there was no application of malus and clawback provisions in the reporting period.

The key activities and decisions made by the Committee during the year are set out

below:

Directors’ Remuneration Policy

• Concluded shareholder consultation and finalised the 2025 Directors’ Remuneration Policy

for shareholder approval at the 2025 AGM and subsequently reviewed 2025 AGM voting

Remuneration for the Board and GEC

• Determined 2026 remuneration packages for the Executive Directors and GEC members

• Determined 2026 fee for the Chair of the Board

Wider workforce

• Reviewed current shareholdings and share ownership requirements for senior

employees with share ownership requirements

• Reviewed wider workforce initiatives and implementation of changes to remuneration

structures

Performance outcomes and target setting

• Reviewed and approved performance outcomes for the 2024 annual bonus and

2022–2024 LTIP, taking into account the wider performance of the Company and

Executive Directors

• Approved 2025 LTIP performance targets

• Approved adjustments to the 2024–2026 and 2025–2027 LTIP targets to reflect the

divestment of Essential Home

• Approved 2026 annual bonus measures and targets and 2026 LTIP award and

performance measures

• Regularly reviewed performance for in-flight bonus and LTIP awards during the year

Share plans

• Approved changes to the executive share plan rules in preparation for shareholder

approval at the 2025 AGM

• Approved changes to the all-employee share plan rules

• Reviewed the impact of the Essential Home divestment for share plan participants

transferring to the new company

• Approved the treatment of dividend equivalents and share consolidation for all share

plan participants

Internal and external governance

• Reviewed market trends, shareholder guidelines and corporate governance updates

• Reviewed Remuneration Committee terms of reference

• Reviewed Remuneration Committee effectiveness

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Directors’ Remuneration Report continued

Annual Report on Remuneration

The remainder of this report sets out how we have implemented our Remuneration Policy in

2025, and how we intend to implement the Policy in 2026.

Assessment of incentive outcomes

The Committee thoroughly evaluates the performance of both the Company and the Executive

Directors in the round to assess whether the formulaic level of annual bonus payout and

long-term incentive vesting are appropriate and justified. The Committee has formalised its

approach to this assessment and the framework which is applied is illustrated below.

Specifically for 2025, as set out in the 2024 Directors’ Remuneration Report, the Committee’s

assessment of performance in the round also included consideration of performance in relation

to the execution and delivery of the refreshed strategy, including the shareholder and wider

stakeholder experience. Based on this additional assessment, the Committee considered a

potential downwards or upwards adjustment to the formulaic outcome.

Annual bonus in respect of 2025 performance

Executive Director 2025 bonus opportunity

In line with the Remuneration Policy, the CEO and the CFO target bonus opportunities are 120%

of salary and 100% of salary, respectively. The bonus outcome and payout are calculated as

follows:

• For each performance measure a target range is set

• A performance multiplier is calculated for each measure, calculated by the extent to which

the performance for that measure is achieved. These multipliers can be up to 1.89x for

outperformance of the stretching range set by the Committee. Net working capital is a

downward modifier only and the multiplier is capped at 1.00x target

• Three individual multipliers are then multiplied together

Net revenue

multiplier

(upto 1.89x)

Adjusted

profitbefore

tax multiplier

(up to 1.89x)

NWC modifier

(up to 1.00x)

Performance

multiplier

(Threshold = 0x;

target = 1.0x;

max = 3.57x)

• The total performance multiplier can range from zero for performance at threshold or below,

to 3.57 for truly exceptional performance. The 3.57 multiplier will only be awarded if maximum

performance is achieved on all metrics (i.e. 1.89 x 1.89 x 1.00)

• This total performance multiplier is then applied to the target bonus opportunity to calculate

the overall formulaic bonus outcome. This is different to usual UK market practice whereby

performance measures are assessed independently and payment under one metric may result

in payout regardless of performance in other metrics. In Reckitt, the three measures combine

to give the resultant payout

Cash Shares

Base salary

Target bonus

Performance

multiplier

Final bonus

outcome

2/3

1/3

What is the formulaic outcome?

Committee to consider year-on-year change, whether this reflects performance trend and impact

onthesingle figure outcome.

Consider the quality of earnings

Committee to review the results to ensure they reflect the underlying performance and also

consideranyexceptional items.

Compare outcome against the shareholder experience

Committee to consider absolute and relative shareholder return over the relevant periods, the dividend

payment(s) and the likely shareholder response to results based on broker feedback.

Compare outcome with overall Company performance

For example, market share, competitor benchmarking, sustainability, people and culture, strategic progress,

wider stakeholder experience and analyst feedback.

Consider any events and other input

For example, reputation/risk related, any change of accounting standards, etc. Draw on input from the

Compliance Committee, Audit Committee and management functions and consider the impact of any

external head or tailwinds.

Compare with historical use of discretion

In addition, consider whether bonus and LTIP outcomes are consistent.

Final APP and LTIP outcomes

Committee to agree whether adjustments are required to formulaic results and determine

thefinaloutcomes for APP payouts and LTIP vesting.

Reckitt Annual Report and Accounts 2025

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Directors’ Remuneration Report continued

• The effect of the multiplicative approach means that a high-performance multiplier can only

be achieved for outperformance on both top-line and bottom-line performance, with

excellent management of working capital

• Similarly, underperformance in one of the performance metrics will reduce the overall bonus

payout, even in the case of outperformance of the rest

• For example, if we grow NR above the stretching requirement for maximum performance and

maintain an excellent level of NWC, but fail to meet the profit threshold, the bonus payout will

be zero (i.e. 1.89 x 0 x 1.00)

• One-third of any APP is deferred into an award over Reckitt shares, to strengthen alignment

with shareholders

2025 performance targets

The Remuneration Committee set targets for the Executive Directors prior to the 2025 financial

year. These were based on net revenue and adjusted profit before income tax, both measured in

GBP at a constant FX. NWC is also used as a downward modifier on both measures. All targets

were based on the business plan at the time, with reference also being made to external

expectations of performance and market practice of companies in a similar stage of the

business cycle to Reckitt. In setting the targets, the Committee also had regard to competitor

performance.

2025 financial performance against APP targets

LFL NR performance for the year resulted in £14.58 billion (on a constant FX basis) which is

between threshold and maximum performance, measured against our stretching target range.

We achieved £3.32 billion adjusted profit before income tax (on a constant FX basis), driven by

year-on-year margin expansion which resulted in EPS growth of 1.1%. Our profit before tax

performance was at the top end of the target range.

Average net working capital (NWC) was -7.6%, the maximum of target range, resulting in the

maximum multiplier. The NWC metric for APP purposes is an operating NWC and is calculated as

a 12-month average.

The chart below illustrates performance compared to the targets:

Performance measure

Threshold

(zero bonus) Achieved

Maximum

(3.57x target) Multiplier

Net revenue (NR)

(constant FX)

<£14.15bn

£14.90bn

1.12

Adjusted profit

beforeincome tax

(constant FX)

<£3.12bn £3.35bn

1.55

Average net working

capital (NWC)

-6.1% -7.6%

1.00

Total 1.74

£3.32bn

-7.6%

£14.58bn

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Directors’ Remuneration Report continued

Overall Group performance taken into consideration

As it does every year, the Committee thoroughly evaluated the performance of both the Group and the Executive Directors in the round to assess whether the level of annual bonus payout is both

appropriate and justified. The framework that the Committee applies is set out on page 91 and more details including progress on delivery of the strategy, wider people, culture and sustainability is

provided below:

Strategic delivery

Portfolio value creation

• New organisational structure in place

since 1 January 2025 with focused

operating model delivering results

• Completed the divestment of Essential

Home, a major step forward in our strategy,

moving Reckitt towards becoming a

simpler, more effective world-class

consumer health and hygiene company

• Our geographic footprint and focus on 11

Powerbrands are driving long-term value

for shareholders

Financial performance

• Focus on Core Reckitt and our portfolio of

Powerbrands driving 2025 LFL net

revenue growth in Core Reckitt ahead of

our 4%-5% medium-term target

• Net revenue growth and efficiency

improvements driving 2025 adjusted

profit before tax up 5.2% and delivering

on ambition to grow EPS

Our winning playbook in action

• Continuing to build our iconic brands and

drive their value creation principles: enduring

competitive advantage, attractive earnings

models and long-term runways for growth

• Focusing on consumer obsession and

superior innovations deliver sustainable

growth through premiumisation, category

creation and household penetration

Executional excellence

• Digitising our go-to-market capabilities to

enhance our distribution, penetration and

efficiency; e-commerce expertise in

China, distribution expansion in India,

omnichannel growth in North America

• Investing in our future, expanding capex

to 4.3% of net revenue as we enhance our

global manufacturing and R&D facilities

Fixed cost

optimisation

• Continued strong progress with our Fuel

for Growth programme: simplification of

our operating model and reduction of

management layers, our unified go-to-

market approach, the right sizing of

historic investments and early-stage

benefits of AI utilisation across functions

• Delivered 150bps of fixed cost savings

inFY 2025 to 19.4% of net revenue

• Reinvesting back into our brands;

increasing marketing investment by 8.1%

with Brand Equity Investment 14.6% of net

revenue, while growing adjusted

operating profit margin to 24.9%

Delivering returns to shareholders

• Committed to returning surplus cash to

ourshareholders through our dividend

andshare buyback programme

• Increased our dividend by 5%

• Returned £2.3 billion in cash to

shareholders in 2025, with excess capital

from the divestment of Essential Home

returned to shareholders in early 2026

(special dividend of £1.6 billion)

Sustainability

Purpose-led brands

• 37.9% net revenue from more sustainable

products, improved from 34.9% in 2024

• 9% reduction in product carbon footprint

vs 2015

• 11.8% recycled content in our plastic

packaging and 17.7% reduction in virgin

plastic packaging vs 2020

• 36% reduction in product chemical

footprint vs 2020, improved from 28%

reduction in 2024

Healthier planet

• 73% reduction in Scope 1 and 2 GHG

emissions vs 2015. We continue to

surpass our science-based target of 65%

reduction by 2030

• 97% of our electricity comes from

renewable sources

• Three sites (Hosur, Mysore and Sitarganj)

are water positive (out of 16 sites in

water-stressed locations)

Fairer society

• 52% of all managers are women against

our ambition for gender balance across

all management levels by 2030

• We continue to uphold responsible

employment standards and in 2025 we

were accredited to the Global Living

Wage Certification

Wider stakeholder experience

Suppliers and external partners

• Continued our partnership with the Fair

Rubber Association and Earthworm

Foundation to build a more resilient

supply chain for Durex by improving latex

farmer livelihoods and restoring

ecosystems

• Progressed our biodiversity landscape

programmes, measuring our biodiversity

impact in selected landscapes in

Indonesia and Malaysia in partnership with

Nature-based Insights, Earthworm and

WWF

• In partnership with WWF we are

progressing water stewardship

programmes in Mexico, Pakistan and

South Africa, and palm landscape

programmes in Indonesia

• Conducted a Human Rights Impact

Assessment in Germany focusing on

logistics corridors and the pharmaceutical

supply chain

• Deployed EcoVadis to enable Supplier

performance assessment, identifying

risks and driving improvements in the

supply chain across the four EcoVadis

pillars: labour & human rights, ethics,

environment and sustainable

procurement

1 Adjusted and other non-GAAP measures, definitions and terms are defined on page 203

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Directors’ Remuneration Report continued

Customers and communities

North America

• Focusing on flawless seasonal execution

highlighted by the Walgreens Seasonal

Strategy, co-created forecast plan to

deliver 99.8% service, including

partnering with Walmart to deliver the

largest URT Activation, delivered 17K

displays over 3-day period at 100%

on-time delivery

• Building a sustained presence on-shelf

through collaborative improvements

driving our availability above 98% with

Walmart across the portfolio to drive

improved year-on-year growth

• Accelerating our expansion in

e-commerce where growth continues to

build in a double-digit rate for a third year

in a row

• Recognised by customers in Grocery

(Publix), Club (BJ’s) and Professional

(Cencora) business as their most

improved or partner of choice in 2025

• Further recognised by our Canadian

customers where we advanced to #2 in

the Advantage Survey and secured the #1

position for on-time and in-full delivery

performance

Europe

• Successfully delivered against our

customer engagement roadmap,

providing strong and sustained service

levels, consistently above 97.5% from H2,

ahead of our key competitors

• Performance recognised by our

customers with a special recognition

award from Tesco, the Tesco Value

Award, (where service has increased by

+15% Y-O-Y), and nominated by Boots as

one of their suppliers of the year

• Progressed our partnership with Amazon

including our first Supply Top 2 Top,

where we launched our Customer

Engagement Strategy

Emerging Markets

• Supporting our largest markets in Brazil

where we were recognised by our

customers, moving to #1 in Nutrition supply

and #3 for Customer Service as

highlighted in the Advantage Survey,

delivered by reaching the TOP rank in

service KPIs

• Creating sustainable solutions, reaching

the #1 Sustainability/ESG Supplier for RD

Group (the most important Pharma Chain)

behind Electrical Vehicle project +125%

Green Deliveries vs 2024

People and culture

Talent and performance

We refreshed our Talent and Performance

Philosophy & Guiding Principles,

implementing a new approach focusing on

the what and the how of achievement

through individual objectives and

measurement, including multi-rater

feedback.

We launched Global Functional Talent

Committees to ensure strategic

sponsorship for career journeys, capability

building, workforce planning, and

succession.

Engagement

We launched a continuous listening

strategy, Let’s Engage, to provide an

accurate and real-time understanding of

how colleagues feel about working at

Reckitt.

• We achieved an 84% response rate,

demonstrating high engagement with our

Listening approach

• We also achieved an 80% recommend

rate an improvement of two points since

our last survey and four points above

global benchmark

• Safety continues to be a strength, with

90% of colleagues agreeing that ‘Reckitt

is committed to employee safety’, and

89% affirming ‘I feel safe when I am at

work’, with both results five points above

the global benchmark. 83% of colleagues

agreed ‘We act responsibly and with

integrity’, a testament to our shared

commitment to doing the right thing,

always

Diversity and Inclusion

Our Inclusion strategy focuses on People,

Brands, and Procurement, overseen by our

Global Inclusion Board.

A key focus for 2025 was Intersectionality

and Allyship with events and workshops to

bring this theme to life.

We held an International Day for Disability in

December 2025, with Board member Pat

Verduin, Global Disability ERG Sponsor.

Reckitt achieved a 5/5 score from LEAD

Network’s (Gender Balance, CPG, Europe)

Diversity Scorecard, up from 4/5 in 2023.

Reckitt colleagues joined LEAD at their

members annual conference; hosting two

break out sessions, on ‘Breaking the

Menopause Stigma’ and ‘Building Healthy

Workplaces and Communities’. Reckitt was

featured as a case study in LEAD’s report on

addressing gender balance.

Wellbeing

Our Better Life webinars have seen almost

double the attendee rate since 2024,

engaging colleagues with a broad range of

relevant topics, maintaining a cumulative

Net Promoter Score (NPS)* score of 55.

Our World Mental Health Day event achieved a

record 10/10 satisfaction score, demonstrating

our growing culture and desire for openness

and inclusion around mental health.

Pay, recognition and benefits

There were a number of initiatives during

the year including:

• Changes to the annual bonus focusing on

both what and how outcomes are

achieved, reinforcing Reckitt’s values and

leadership behaviours

• Rebalancing of short and long-term reward

for our middle management population

More details on pay arrangements for the

wider workforce are set out on pages 98-99.

Reckitt Annual Report and Accounts 2025

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Directors’ Remuneration Report continued

Decision on 2025 bonus outcomes

As part of the performance in the round assessment summarised above, as set out in the 2024

Directors’ Remuneration Report, the Committee specifically also assessed performance in

relation to the execution and delivery of the refreshed strategy during the year, noting that

excellent progress had been achieved. As detailed in the Chair’s letter, the Committee included

the following as part of its assessment:

• Corporate restructuring – the embedding of our simplified operating model which gives us

the foundations to unlock sustainable, future growth

• Essential Home - the successful divestment of Essential Home, delivering a very strong

outcome for shareholders and enabling a focus on our core portfolio of high-growth, high-

margin Powerbrands

• Mead Johnson Nutrition – the strong performance and resilience of MJN, positioning the

business for sustained future performance

The Committee also considered the very strong shareholder experience this year, that saw the

creation of £9.5 billion of shareholder value as well as the further £1.6 billion of cash delivered to

shareholders through the special dividend paid in February 2026 following the successful

completion of the Essential Home divestment.

Based on this assessment of performance, an adjustment of +7% of the maximum opportunity

was applied to the bonus outcome, resulting in an overall multiplier of 2.00x. Our whole Senior

Management Team, which includes c.450 employees, were eligible to receive an adjustment, the

level of which was dependent on contribution towards strategic progress.

The table below illustrates the final APP outcome with the adjustment applied.

Bonus outcome % of maximum

Total performance based on measures 49%

Adjustment related to strategic delivery +7%

Total overall performance 56%

One-third of the annual bonus will be delivered by way of an award over Reckitt shares and

deferred for a three-year period.

Base salary

(£) X

Target

bonus X

Performance

multiplier =

Total bonus

(£) =

Cash

(£)

Deferred

into shares

(£)

Kris Licht 1,144,000 120% 2.00 2,745600 1,830,400 915,200

Shannon

Eisenhardt 828,400 100% 2.00 1,656,800 1,104,533 552,267

Vesting of the 2023 LTIP

The Reckitt LTIP is designed to align participants with shareholders through making awards

withstretching performance conditions denominated in both performance share options and

performance share awards. Kris Licht’s award was made to him as an Executive Committee

member before he joined the Board. Shannon Eisenhardt was granted a pro-rata LTIP award

inOctober 2023, to reflect that she joined within the performance period.

Assessment of performance versus targets

The chart below illustrates performance compared to the targets. As set out below,

performance against performance measures over the three-year performance period results

inan overall 63% vesting of the 2023 LTIP award.

Performance measure

Threshold

(20% vesting) Achieved

Maximum

(100% vesting)

Vesting (% of

total award)

LFL NR growth

(three-year CAGR)

(40%weighting)

2.0% p.a. 5.0% p.a.

17%

ROCE

(25%weighting)

14.0% 16.0%

21%

Relative TSR

(25% weighting)

Median

Upper

Quartile

15%

%NR from more

sustainable products

(5% weighting)

32% 35.0%

% reduction in GHG

emissions

(5% weighting)

66% 69.0%

Total vesting 63%

Overall Group performance taken into consideration

As it does every year, the Committee thoroughly evaluated the performance of both the Group

and the Executive Directors in the round to assess whether the level of vesting under the LTIP

isboth appropriate and justified. The framework that the Committee applies is set out on page

91. The Committee took into account the progress on delivery of the strategy and wider

people, culture and sustainability in 2025 as disclosed on pages 93-94 of this report andover

the performance period of the 2023 LTIP, as disclosed in previous Annual Reports, aswell as the

wider shareholder experience over this period.

Decision on 2023 LTIP vesting outcome

The Committee is satisfied that this outcome is aligned with the shareholder experience and

thewider assessment of performance over the last three years and concluded that the overall

vesting level is justified and appropriate in this wider context.

2.8% p.a.

15.6%

37.9%

73.0%

Rank 8.13/20

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Directors’ Remuneration Report continued

Vesting of the LTIP for the Executive Directors and for recent years is shown below:

2017–2019 2018–2020 2019–2021 2020–2022 2021–2023 2022-2024 2023-2025

0% 0% 22% 100% 78% 68% 63%

Based on the performance assessment above, the 2023 LTIP award to Kris Licht and

ShannonEisenhardt will vest as detailed below.

Interests

held

Exercise

price (£)

Vesting

Interests

vesting

Share price

(£)

Estimated

value (£)

Kris Licht

Performance shares 44,759 NA 63% 28,198 58.73 1,656,069

Performance share options 80,000 58.28 63% 50,400 58.73 22,680

Shannon Eisenhardt

Performance shares 31,973 NA 63% 20,142 58.73 1,182,940

Performance share options 58,905 58.87 63% 37,110 58.73 0

1 Includes dividend equivalents accrued over the performance period, which are subject to performance conditions

2 As the share price on the date of vesting is unknown at the time of reporting, the value is estimated using the average

market value over Q4 2025 of £58.73. The actual value at vesting will be disclosed in the 2026 Annual Report

There is a further two-year holding period attached to the 2023 LTIP award for Kris and Shannon,

which means that vested performance shares or options will not be released until 1 January

2028, and the resultant shares from the exercise of any vested performance share options will

not be released until 1 January 2028.

Single total figure of remuneration for Executive Directors (audited)

The table below sets out a single figure for the total remuneration received by each Executive

Director for the year ended 31 December 2025, based on the information set out in the previous

sections. This is compared to the prior year figure:

Kris Licht Shannon Eisenhardt

2025

2024

2025

2024

Base salary 1,144,000 1,100,000 828,400 760,000

Taxable benefits

117,271 132,620 114,157 239,157

Pension benefit 114,400 110,000 82,840 76,000

Annual bonus

2,745,600 3,049,200 1,656,800 1,755,600

LTIP

3,4

1,678,749 1,450,288 1,182,940 –

Buyout awards

– – – 215,757

Fixed remuneration 1,375,671 1,342,620 1,025,397 1,075,157

Variable remuneration 4,424,349 4,499,488 2,839,740 1,971,357

Total 5,800,020 5,842,108 3,865,137 3,046,514

1 Benefits for Kris Licht in 2025 primarily consist of the use of a car, healthcare and tax support. For Shannon Eisenhardt, the

benefits include the use of a car, home leave flights, healthcare and tax support. Where relevant the costs above include a

gross-up for tax

2 One-third of the annual bonus is deferred into share awards for three years and will vest subject to continued employment

3 For 2025, this is the estimated value of the 2023 LTIP award, valued using an average share price over Q4 2025 of £58.73. Of

this value, £22,680 for Kris Licht and £56,196 for Shannon Eisenhardt is attributable to share price growth over the period.

Kris Licht’s LTIP award was granted before he was appointed to the Board, however, the full value of the award has been

included for transparency. Shannon Eisenhardt joined the Group in October 2023 and was granted a pro-rata LTIP award

based on the period employed during the performance period

4 The value of the Kris Licht’s 2022 award included in the 2024 single figure has been restated from last year, based on the

actual share price of £49.00 on the date of vesting, 8 May 2025

5 The value of Shannon Eisenhardt’s buyout award included in the 2024 single figure, and which was subject to the same

performance conditions and targets as the Reckitt 2022 LTIP, has been restated from last year, including dividend

equivalents accrued, based on the actual share price of £56.54 on the date of vesting, 1 August 2025

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Directors’ Remuneration Report continued

0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 200,000120,000 140,000

Shannon

Eisenhardt

Kris Licht

£6.30mn

Shareholding

requirement

Current

shareholding

£1.69mn

Shareholding

requirement

Current

shareholding

The table below shows the current shareholding of each Executive Director against their respective shareholding requirements as of 31 December 2025:

Shareholding

requirement

(number of

shares)

Total beneficial

interests

(number of shares)

Shares awarded

under the

Deferred

Bonus Plan

not subject to

performance

Performance shares Options held

To vest in 2026

Unvested, subject

to performance

Vested but not

exercised To vest in 2026

Unvested, subject

to performance

Kris Licht 200,000 58,584 33,745 10,000 14,944 162,500 143,400 50,400 325,000

Shannon Eisenhardt 100,000 5,239 12,790 0 10,675 82,500 0 37,110 165,000

1 ‘Total beneficial interests’ are shares owned outright. Due to the 24 for 25 share consolidation on 2 February 2026, the total beneficial interests for the Directors has reduced from those shown above

2 ‘Shares awarded under the Deferred Bonus Plan’ shows the estimated number of shares awarded under the Deferred Bonus Plan, including an estimate of those to be deferred from the 2025 annual bonus, after tax, excluding dividend equivalents

3 For Kris Licht, includes the award under the Share Ownership Policy (SOP) granted before his appointment to the Board based on continued employment and the achievement of shareholding requirements

4 This is the estimated number of shares vesting in March 2026 under the 2023 LTIP, after tax, including dividend equivalents

5 The Executive Directors are also eligible to participate in the all-employee Sharesave Scheme. Details of options held under this plan are set out on page 110

Shareholding of Executive Directors compared to requirements

The chart below illustrates the Executive Directors’ shareholding compared to the Company’s

shareholding requirements at 31 December 2025. Executives have a period of eight years from

appointment to achieve the requirements of 200,000 shares for the CEO and 100,000 for the

CFO. Both Executive Directors are showing expected progress towards meeting these

requirements as reflected below:

Shares held

Shares under DBP

2026 LTIP Vesting

1 Current shareholding value based on the average closing share price in Q4 2025 of £58.73

2 Shares owned outright

3 This is the estimated number of shares awarded under the Deferred Bonus Plan, including those to be deferred from the

2025 annual bonus, after tax

4 This is the estimated number of shares vesting in March 2026 under the 2023 LTIP, after tax

Directors’ interests in shares and options (audited)

Executive Directors are expected to acquire significant numbers of shares over eight years and

retain these until retirement from the Board, with a portion required to be retained post-

employment as described below.

These shareholding requirements (200,000 shares for the current CEO and 100,000 shares for the

current CFO) are amongst the most demanding in the UK market and are equivalent to c.1,027%

and c.709% of salary for the CEO and CFO, respectively, based on a share price of £58.73. These

requirements are also nearly double the current annual LTIP award (assuming a Black-Scholes

valuation of 15% for the performance share options).

We also have post-employment shareholding requirements for a further two years. The

post-employment shareholding requirement is enforced through a restriction on Executive

Directors’ vested shares, held by our external share plan administrator, which requires Company

permission before these shares can be sold. This restriction excludes shares purchased by the

Executive Directors.

The two-year post-employment shareholding requirement is 50% of the shareholding

requirement or actual shareholding on leaving if lower. This represents c.513% of salary for the

CEO and c.354% for the CFO; it is also broadly in line with the current annual LTIP award,

(assuming a Black-Scholes valuation of 15% for the performance share options).

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Directors’ Remuneration Report continued

Wider workforce pay arrangements

Reckitt continues to cascade its reward policy fairly and consistently throughout the organisation

and the Remuneration Committee considers the arrangements for the wider workforce when

setting Executive Directors’ remuneration.

Information reviewed by the Remuneration Committee includes salary structures, bonus design

and targets, the LTIP, share ownership, our global mobility policies, provision of benefits and

Reckitt’s all-employee share plans. The Committee is pleased to note from this review that the

Company’s remuneration policies are aligned with those of the Executive Directors, with a

cascade throughout the organisation.

During 2025, Reckitt continued to strategically reshape our Business to sharpen our portfolio and

simplify our structure for accelerated growth, ensuring Reckitt’s position as a leader in consumer

health and hygiene. In support of this, a broadbanding framework was implemented for the

senior management team, simplifying the pay structure and providing greater flexibility in

remuneration management. In addition, the benchmarking approach for the senior management

team was updated to align with the Company’s talent strategy.

In 2025, individual performance was incorporated into the annual bonus framework for middle

managers and below. Individual performance is now an element of bonus outcomes, ensuring

remuneration reflects personal contribution alongside overall business performance. This

approach supports accountability, enables appropriate differentiation, and reinforces Reckitt’s

values and leadership behaviours, ensuring bonus outcomes reflect not only what is achieved,

but how it is achieved, in support of long-term sustainable success.

Together, these changes underscore our commitment to rewarding the right behaviours and

drive long-term growth and success. Our remuneration package remains highly competitive,

helping us attract and retain top talent while fostering a culture of ownership and long-term

commitment.

Reckitt is also proud to pay above the Living Wage to all employees and Reckitt contractors in all

locations, and has a focus on providing sustainable livelihoods through our global benefit

principles.

At Reckitt, we are proud of our people and their achievements, as well as our reward policies

and practices that reflect our values and culture. We continue to focus on maintaining an open,

transparent culture by promoting continuing dialogue across the Company. During 2025, Elane

Stock, the Designated Non-Executive Director for Workforce Engagement, has fed back the

views of the workforce to the Remuneration Committee as well as the wider Board following

her meetings with colleagues. Each year the Company holds several engagement sessions with

employees and organises site visits during which town hall meetings and smaller group

discussions with our people take place. Details of this engagement can be found in the 2025

Board Activities which can be found on pages 62-63.

The table on page 99 summarises the remuneration structure for the wider workforce.

All details are subject to works council consultation and/or employee notification in country.

2025 LTIP awards granted in 2025 (audited)

The table below sets out the LTIP awards made to the Executive Directors during 2025. Vesting of these awards in full requires achievement of stretching performance conditions over the three-year

period, as set out in the 2024 Directors’ Remuneration Report. Dividend equivalents accrue on performance shares during the performance period but will only pay out on vested performance shares.

Inline with the Directors’ Remuneration Policy, for Executive Directors there is a further two-year holding period for the 2025 LTIP commencing after the end of the three-year performance period.

Date of grant

Shares over which

awards granted

Market price at

date of award

(£)

Exercise

price (£)

Face value

(£)

Face value less

exercise price

(£) Performance period Exercise/vesting period Holding period

Performance shares

Kris Licht 6 March 2025 87,500 52.94 N/A 4,632,250 N/A 1 January 2025–31 December 2027 March 2028 1 January 2030

Shannon Eisenhardt 6 March 2025 42,500 52.94 N/A 2,249,950 N/A 1 January 2025–31 December 2027 March 2028 1 January 2030

Performance share options

Kris Licht 6 March 2025 175,000 52.94 52.48 9,264,500 80,500 1 January 2025–31 December 2027 March 2028–March 2035 1 January 2030

Shannon Eisenhardt 6 March 2025 85,000 52.94 52.48 4,499,900 39,100 1 January 2025–31 December 2027 March 2028–March 2035 1 January 2030

1 The market price at date of award is the closing share price on the date of grant

2 The exercise price is based on the average closing share price over the five business days prior to the date of grant

3 For performance shares, the face value is based on the share price at the date of award and assumes the stretching performance criteria are met to achieve full vesting. For performance-based share options, the face value in the table above is calculated

as the number of share options multiplied by the market price at date of award. However, the actual value to a participant at the time of exercise will be the difference between market price at that time and the exercise price for the number of share

options vesting, after the assessment of performance against the stretching performance criteria set. It should be noted that the ‘face value’ shown above would therefore only be realised if the stretching performance conditions are met in full and the

share price at the time of exercise is double the exercise price

Reckitt Annual Report and Accounts 2025

Strategic report Governance Financial statements Other information

Directors’ Remuneration Report continued

Salary Annual bonus (APP) Long-term incentive Pension All-employee shares Share ownership Benefits

Salary increases are

based on individual

performance ratings,

talent assessments, and

local market practices

and conditions, e.g.

inflation.

For 2026, the salary

increase budget for the

wider UK workforce was

4%.

The average total pay

across the Group in 2025

was £56,768.

The median CEO pay

ratio is 1:104 (page 101).

We continue to progress

against our three-year

roadmap to enhance pay

transparency. In 2025,

internal pay equity

assessments were

expanded globally, with

external consolidated

pay gap reporting

scheduled to commence

in 2026.

In 2026, Reckitt was

accredited by the Fair

Wage Network and all

our employees are paid

at least the living wage in

their location. This

certifies our commitment

to employees that they

will receive a wage that

not only exceeds the

minimum wage but also

recognises the actual

cost of living in the UK.

Our APP is consistently

implemented across the

organisation with 16,000

participating employees.

Target bonuses and

maximum multipliers

increase with progression

and promotion.

Bonus payouts, aligned

with Executive Directors,

are tied to Reckitt’s

financial performance. All

employees are

incentivised based on

net revenue and a profit

measure, varying by role.

All roles include a third

measure, such as NWC.

For the majority of our

employees, bonuses are

further differentiated

based on individual

performance.

A Quality of Earnings

(QoE) assessment also

applies to assess market

performance, focusing on

both financial outcomes

and how they are

achieved.

Additional bonus plans

are in operation for

specific areas such as

sales and factories.

Reckitt grants LTIP

awards to the GEC,

Group Leadership Team

and Senior Management

Team.

The 2026 awards use the

same measures and

performance period as

for the Executive

Directors.

Awards are a fixed

number of options and

shares, based on

employee level,

performance and

potential. In addition,

participants below the

GEC receive restricted

share awards. Managers

can recommend

additional awards to key

employees.

In 2025, we expanded

our LTIP to include

employees in the middle

manager population, who

are now eligible to

receive RSU awards,

subject to local

restrictions.

An additional RSU award

will be granted to all

2026 LTIP participants

below GEC in recognition

of their contribution

during a period of

significant change.

A pension/gratuity

scheme is offered to 84%

of our global employees.

Countries where pension

provision is not prevalent

in the local market and/or

is provided by the state

remain an exception to

the above.

In the UK, all Reckitt

employees are eligible to

receive a Company

pension contribution of

at least 10% of

pensionable salary,

irrespective of any

personal contribution

made.

We offer a global share

plan for all employees to

buy Reckitt shares at a

discount over three

years. This is offered to

over 89% of our

employees globally

where local legislations

permit, and is supported

by a network of 120 local

champions and

communicated in 24

languages.

At the end of 2025,

around 11,500 Reckitt

employees were

participating in one of

our three share plans,

with over a total of £58

million of employee

savings in our all-

employee share plans, or

just over £5,000 on

average per participating

employee.

We allow and encourage

a 12-month savings

sabbatical for employees

on maternity leave.

Reckitt is proud of our

ownership culture.

Our GEC and Group

Leadership Team have

shareholding

requirements with eight

years within appointment

to reach target. These

are very demanding and

reviewed annually by the

Remuneration

Committee.

Amongst the GEC, the

total shareholding

requirement is around

£40.9 million¹ and the

average shareholding

requirement among this

group, excluding the

CEO, is c.427% of salary.

Aggregate actual holding

for the GEC is £31.5

million¹, equivalent to an

average of 381% of salary.

Total shareholding

requirement for all

employees with

requirements is £75.6

million¹, equivalent to an

average of 225% of

salary.

As at 31 December 2025,

actual holding is £58

million¹ and the actual

average holding is 168%

of salary. We regularly

check share ownership

to review progress.

We provide regularly reviewed,

market-competitive and

inclusive benefits for all our

employees. Core benefits

include:

• Life insurance for all

employees of at least

2xbasesalary

• Employee Assistance

Programme in every country

• Health insurance for most

employees, where the state

does not cover it, with spouse

and/or children also covered

for the majority of our

employees

• Global Parental Leave Policy.

At least 26 weeks’ paid

maternity leave and four

weeks’ paid paternity leave

• International Transfer Policy

for global mobility and career

development. Employees

transfer on local terms basis.

Additional benefits for some

moves, such as international

healthcare, pension, school

fees, tax support and home

leave

1 Based on the average closing share price in Q4 2025 of £58.73 and includes actual shareholding as at 31 December 2025, actual Deferred Bonus Plan shares awarded (estimated net of tax) and an estimate of those to be deferred from the 2025 annual bonus

Reckitt Annual Report and Accounts 2025

100

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Directors’ Remuneration Report continued

Salary Annual bonus (APP) Long-term incentive Pension All-employee shares Share ownership Benefits

Comparison with Executive Director remuneration

Salary increases take into

account the approach for

the wider workforce.

Salaries are also set

competitively against

peers in support of the

recruitment and retention

of Executive Directors.

The CEO received an 8%

increase.

The CFO received a 4%

increase in line with the

wider UK population.

For Executive Directors,

bonuses are directly

related to Reckitt’s

financial performance:

NR, adjusted profit

before income tax

targets, as well as NWC

which acts as a

downward modifier only.

APP operates on a

multiplicative basis, in the

same way as for the

wider workforce.

A performance

assessment of the

Company and the

Executive Directors in the

round is undertaken

every year.

One-third of annual

bonus payments for

Executive Directors are

subject to a three-year

deferral into awards over

Reckitt shares.

We have malus and

clawback and other

safeguards in place to

manage any potential risk

that may arise from the

use of the APP.

Executive Directors’ LTIP

grants comprise

performance share

options and performance

share awards (based on a

fixed number), which for

the 2026 awards will vest

subject to the

achievement of LFL NR,

ROCE, relative TSR and

sustainability

performance targets.

In addition to the LTIP

three-year performance

period, Executive

Directors are subject to

an additional two-year

holding period

commencing at the end

of the performance

period.

Malus and clawback

provisions apply to the

LTIP.

Under the Policy, our

Executive Directors are

eligible to receive a

Company pension

contribution of 10% of

salary, in line with the

wider workforce in the

UK.

They are eligible to take

this as a cash alternative.

Executive Directors are

eligible to participate in

the all-employee

Sharesave Scheme on

the same basis as all

employees.

The Executive Directors

have shareholding

requirements of 200,000

shares for the CEO and

100,000 for the CFO, one

of the highest

requirements in the UK

market. These are

equivalent to 1,027% and

709% of salary

respectively.

Executive Directors are

additionally subject to a

post-employment

shareholding requirement

which is enforced

through restrictions put

in place by our share plan

administrator.

The table on page 97

sets out the progress of

the Executive Directors

towards their

shareholding

requirements.

Executive Directors receive

benefits which consist primarily

of the provision of a Company

car/allowance, risk insurances,

healthcare and tax support.

In addition, Executive Directors

are eligible for the benefits

available to the wider workforce

in their local market.

1 Based on the average closing share price in Q4 2025 of £58.73

Reckitt Annual Report and Accounts 2025

101

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Directors’ Remuneration Report continued

Gender pay gap

The Board reviews the Company’s gender pay gap. To increase transparency on this issue

Reckitt voluntarily discloses the gender pay gap for our 10 largest markets by workforce size,

including the UK, which together make up around 68% of our global permanent workforce. All

data is published in our ESG Databook on our website at reckitt.com/reporting-hub.

The 2025 UK results show a further narrowing of our mean gender pay gap, from 0.6% to 0.1%

while the median pay gap shifted from -9.1% to -10.2%

in favour of women. These modest

year-on-year changes reflect natural variations in our workforce composition rather any change

in our pay approach.

Reckitt has set targets to increase the number of women in senior leadership positions and has

a number of initiatives to increase this representation.

Δ KPMG’s assurance statement and our reporting methodology are detailed in our Basis of Reporting and ESG Data Book,

bothavailable at reckitt.com/reporting-hub

CEO pay ratio

The table below provides pay ratios of the CEO’s total remuneration to the remuneration of UK

employees at the lower quartile, median and upper quartile. This is in line with UK reporting

requirements.

CEO Year Method

25th percentile

pay ratio

Median

pay ratio

75th percentile

pay ratio

2025 Option A 1:137 1:104 1:59

2024 Option A 1:138 1:104 1:60

2023 Option A 1:136 1:99 1:57

2022 Option A 1:82 1:61 1:34

2021 Option A 1:170 1:121 1:78

2020 Option A 1:244 1:177 1:100

2019 Option A 1:158 1:115 1:70

The calculations reflect the application of Reckitt’s reward policy across the organisation as set

out in the section on wider workforce pay arrangements.

In particular, the Remuneration Committee believes the pay ratio is consistent with the Group’s

wider policies on employee pay, reward and progression. Reckitt ensures that employees are

paid fairly for their roles, based on the location they work in and their performance in role. As

such, the base salary, annual bonus and benefits are based on the same principles for the

identified employees as they are for the CEO.

In calculating the ratio we have used Option A, in line with shareholder guidelines. The

employees used in the calculations were selected on 26 February 2026 following the bonus

calculations reflecting the end of the 2025 financial year.

For identifying the three employees at the lower quartile, median and upper quartile, the

following methodology has been used:

• All UK employees’ total remuneration as at 31 December 2025 has been considered, excluding

leavers and employees who were absent for more than 20 days during the financial year, as

these would distort the ratio

• Full-time equivalent salary, variable pay, allowances and benefits (using the part-time values

and converting these to full-time equivalent values) have been calculated. In order to

calculate the value of taxable benefits we have taken the P11D value, due to ease of accessing

data. Actual pension contributions have been used, and, where appropriate, converted to

full-time equivalents

The table below summarises the identified employees in 2025:

25th percentile

(£)

Median pay

(£)

75th percentile

(£)

Total employee pay and benefits 42,410 55,972 97,595

Salary component 33,424 44,997 68,492

In addition, Note 5 to the Financial Statements sets out the total employment costs and average

number of employees globally during 2025. Based on these, the average global pay during 2025

was £56,768 and consequently the pay ratio between the CEO and average global employee

was 1:102.

Reckitt Annual Report and Accounts 2025

102

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Directors’ Remuneration Report continued

Implementation of Directors’ Remuneration Policy in 2026

In reviewing Executive Director remuneration, the Remuneration Committee took into account

remuneration for the wider workforce. The Committee also reviewed market practice, primarily

against the FTSE 30 (excluding financial services companies) and considered an international

remuneration peer group which Reckitt competes with for talent and is subject to similar market

forces. Operationally, the international peer group is representative of consumer health and

hygiene companies. This comprises 22 companies as follows: Abbott Laboratories, Bayer,

Campbell Soup, Church and Dwight, Clorox, Coca-Cola, Colgate, Danone, GSK, Haleon, Henkel,

Johnson & Johnson, Kenvue, Kimberly-Clark, Kraft Heinz, Nestlé, Novartis, PepsiCo, Pfizer,

Procter& Gamble, Sanofi and Unilever. This peer group is also used to benchmark remuneration

for the GEC.

Salary

The CEO received an increase of 8% for 2026, representing a 4% increase in line with the wider

UK workforce and an additional 4% adjustment. As detailed in the Chair’s letter, this is part of

aphased salary adjustment over two years to address the CEO’s salary positioning which has

fallen significantly below the lower quartile of the FTSE 30 (excluding financial services). It is

intended that the second part of the adjustment will be made for 2027 (subject to continued

performance). The CFO received an increase for 2026 aligned to the wider UK workforce at 4%.

Pension

The CEO and CFO are eligible to receive a pension contribution, or equivalent cash allowance,

of10% of salary, which is in line with the Company’s level of contribution for all UK employees.

2026 Annual bonus

There are no changes to the bonus opportunity for the CEO and CFO, remaining at 120% and

100% of salary at target, respectively. Bonuses for 2026 will remain based on Reckitt’s NR and

adjusted profit before income tax targets, measured in GBP at a constant exchange rate, with

the outcome under each of the measures combined multiplicatively to give a maximum bonus

outcome of 3.57x the target bonus opportunity if both targets are met.

The NWC metric will act as a downward modifier, applying on a multiplicative basis to

thecombined outcome of the NR and adjusted profit before income tax targets, with

amaximum multiplier of 1x. One-third of any bonus earned will be deferred into Reckitt

sharesfor three years.

Similarly to 2025, the Committee’s assessment of performance in the round for the 2026 APP will

also include specific consideration of performance in relation to the progress in executing and

delivering the refreshed strategy, which is a multi-year strategic programme. The Committee

will use its judgement to assess performance in 2026 against the strategy (including the

shareholder and wider stakeholder experience during the year), and may apply a downwards or

upwards adjustment to reflect this. This will apply to our entire Senior Management Team (c.450

employees), alongside the holistic assessment of performance in the round.

We have not disclosed the performance target ranges for 2026 as we consider them to be

commercially sensitive. However, we commit to retrospectively disclosing the performance

ranges in the Directors’ Remuneration Report for the year ending 31 December 2026.

2026 LTIP awards

Award levels

There is no change to the LTIP award levels for 2026. The award for the CEO remains at 87,500

performance shares and 175,000 performance share options with the CFO’s award remaining at

42,500 performance shares and 85,000 performance share options.

Performance conditions

The LTIP performance metrics and their associated weightings have been reviewed in the year

and the Committee is of the view that the current overall balance of measures remains

appropriate and aligned to our strategy and culture.

The Committee went through a robust process when setting these targets, taking into account

a number of factors and different reference points, and the Committee considers that the

targets set are very stretching. Awards granted in 2026 will vest in line with the descriptions

below, which require significant outperformance of targets.

LFL NR growth

NR is measured as LFL growth over three years. At the time these targets were set the

Committee took into account market consensus and our stated ambition for LFL NR growth

which is +4% to +5% in the medium term. In this context, the Remuneration Committee believes

that the performance ranges are appropriately stretching and incentivise management to

deliver outperformance. 20% of this element will vest for achieving 2.8% per annum growth

increasing to full vesting for achieving 5.8% per annum growth.

Reckitt Annual Report and Accounts 2025

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Directors’ Remuneration Report continued

ROCE

ROCE is measured in the final year of the performance period and is a measure of how efficient

the Group is at converting its capital into earnings. For LTIP purposes, ROCE is measured on a

constant currency basis. In addition, LTIP targets include impairments prior to the start of the

performance period, whereas in the calculation elsewhere in the Annual Report total assets

have been adjusted to add back impairments of goodwill, except where the impaired asset has

been disposed or partially disposed.

If there are any impairments during the performance period, the Committee will ensure that this

does not lead to an increase in the vesting by adjusting the capital employed accordingly and to

ensure an LFL comparison to the targets. 20% of this element will vest for achieving 16.7%

increasing to full vesting for achieving 18.7%.

Relative TSR

Relative TSR directly aligns LTIP participants with the shareholder experience and will only

reward for TSR outperformance against our peers.

As it does every year, the Committee reviewed the constituents of the peer group to ensure

that they remain appropriate to assess performance against and also considered whether any

additional peers should be added. In particular, the Committee considered the peer group in the

context of the divestment of Essential Home and concluded that the divestment does not

materially alter the overall balance of Reckitt’s portfolio and that all existing constituents remain

relevant competitors in this context.

Therefore, the peer group for the 2026 LTIP awards comprises 18 companies with which we

compete for capital and to which shareholders compare us and is also an appropriate group

against which to incentivise LTIP participants to outperform. The peer companies are primarily

drawn from the constituents of the MSCI World House and Personal Products Index. The

constituents will be reviewed on an annual basis and, in particular, as new comparators

cometothe market. The TSR peer group for the 2026 LTIP award is set out below:

Beiersdorf Estée Lauder L’Oréal

Church & Dwight Haleon Nestlé

Clorox Henkel Procter & Gamble

Colgate Palmolive Kao Shiseido

Danone Kenvue Unicharm

Essity Kimberly-Clark Unilever

The Committee noted the proposed acquisition of Kenvue by Kimberly-Clark, both of which are members of the current

TSRgroup. Kimberly-Clark will remain a suitable comparator for Reckitt; however, if the transaction takes place, the Committee

will consider the treatment of Kenvue within the peer group.

Under the relative TSR measure, 20% of the award will vest for TSR at the median of the peer

group, increasing to full vesting for upper quartile performance or above.

Sustainability

Sustainability measures incentivise delivery of our 2030 Sustainability Ambitions, in particular our

ambition for 50% of NR to come from more sustainable products by 2030. Our LTIP targets for

this measure reflect our progress to 2030, such that 20% of this element will vest for achieving

44% of NR from more sustainable products, increasing to full vesting for achieving 47% in 2028.

As set out on page 43 of this report, the 2030 Sustainability Ambition for this measure now

relates to Core Reckitt only, excluding MJN, and as such the LTIP targets have been set on the

same basis.

Summary of 2026 LTIP targets

Performance will be assessed for each measure, at the end of the three-year performance

period, on a sliding scale as set out below:

Threshold

(20% vesting)

Maximum

(100% vesting)

LFL NR growth (three-year CAGR)

(40% weighting) 2.8% 5.8%

ROCE (final year) on a constant foreign exchange basis

(25% weighting) 16.7% 18.7%

Relative TSR

(25% weighting) Median

Upper

quartile

Sustainability: % of NR from more sustainable products (final year)

(10% weighting) 44% 47%

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Directors’ Remuneration Report continued

Adjustment of in-flight LTIP performance measures

In line with normal market practice and our historical approach for material acquisitions and divestments during the performance period, the Committee has adjusted the targets for the 2024–2026

and 2025–2027 awards, to reflect the divestment of Essential Home.

A consistent approach has been taken across all three relevant performance measures, in line with generally accepted shareholder principles, with the targets assessed on a like-for-like basis and

the adjustments made to ensure that the challenge in the new targets remains equal to that of the original targets and that participants are no better or worse off.

The tables below show the original targets and the new targets for the remaining period of the in-flight awards.

2024 LTIP targets

Original targets Adjusted targets

Threshold

(20% vesting)

Maximum

(100% vesting)

Threshold

(20% vesting)

Maximum

(100% vesting)

LFL NR growth (three-year CAGR)

(40% weighting) 2.0% 5.0% 2.1% 5.1%

ROCE (final year) on a constant foreign

exchange basis (25% weighting) 14.9% 16.9% 12.9% 14.9%

Relative TSR

(25% weighting) Median

Upper

quartile Median

Upper

quartile

Sustainability: % of NR from more

sustainable products (final year)

(5% weighting) 43% 46% 43.2% 46.2%

Sustainability: % reduction in GHG

emissions in operations (final year)

(5% weighting) 67% 70% 67% 70%

2025 LTIP targets

Original targets Adjusted targets

Threshold

(20% vesting)

Maximum

(100% vesting)

Threshold

(20% vesting)

Maximum

(100% vesting)

LFL NR growth (three-year CAGR)

(40% weighting) 2.5% 5.5% 2.8% 5.8%

ROCE (final year) on a constant foreign

exchange basis (25% weighting) 17.5% 19.5% 15.3% 17.3%

Relative TSR

(25% weighting) Median

Upper

quartile Median

Upper

quartile

Sustainability: % of NR from more

sustainable products (final year)

(10% weighting) 43% 46% 42.5% 45.5%

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Directors’ Remuneration Report continued

Additional Remuneration Disclosures

Percentage change in the remuneration of Directors

We are required to publish the annual percentage change in remuneration (salary or fees, benefits and annual bonus) for each Director compared to the annual average percentage change in

remuneration for the employees (excluding Directors) of the Parent Company. Since the CEO and CFO are the sole employees of Reckitt Benckiser Group plc, this statutory disclosure is not possible.

In the table below we are therefore voluntarily disclosing the percentage change in remuneration for all UK employees in order to provide a representative comparison. The Company considers UK

employees to be an appropriate comparator group as the Executive Directors’ remuneration arrangements are similar in structure to the majority of these employees and it reflects the economic

environment where the Executive Directors are employed. The analysis is based on a consistent set of employees for each comparison, i.e. the same individuals or roles appear in the 2024/25

comparison, and similarly for previous year comparisons.

2024/25 2023/24 2022/23 2021/22 2020/21

Salary/fee Benefits Bonus Salary/fee Benefits Bonus Salary/fee Benefits Bonus Salary/fee Benefits Bonus Salary/fee Benefits Bonus

All UK employees

4.4% 7.1%

1.8% 5.6% 8.9%

-23.3% 6.5% 1.6%² 6.1% 4.1% 2.1%

15.6% 5.9% 6.2%² -8.9%

Sir Jeremy Darroch

(Chair of the Board) 40% – – 234.4% – – 516.2% – – – – – – – –

Andrew Bonfield 16% – – 22.9% – – -0.7% – – 6.2% – – 2.4% – –

Elane Stock 12% – – 17.5% – – 3.4% – – 2.6% – – 2.7% – –

Fiona Dawson

102% – – – – – – – – – – – – – –

Kris Licht (CEO) 4% -12% -10% 91.3% 130.4% 65.2% – – – – – – – – –

Mahesh Madhavan

– – –

Margherita Della Valle 6% – – 6.6% – – 3.4% – – 2.6% – – 105.4% – –

Marybeth Hays 25% – – - – – – – – – – – – – –

Pat Verduin

– – –

Shannon Eisenhardt (CFO) 9% -52% -6% 380.0% 24.1% 278.4% – – – – – – – – –

Stefan Oschmann

– – –

Tamara Ingram 6% – – 16.2% – – – – – – – – – – –

Mary Harris

-61% – – 3.3% – – -1.6% – – -3.8% – – 2.0% – –

Mehmood Khan

-29% – – 14.8% – – 3.4% – – 2.6% – – 2.7% – –

1 The percentages for ‘All UK employees’ reflect the average percentage change in full-time equivalent salary, taxable benefits and allowances, and bonus for colleagues based in the UK between 2020/21, 2021/22, 2022/23, 2023/24 and 2024/25. It only

includes colleagues employed in both years in the comparison

2 The percentage change in taxable benefits for all UK employees excludes international transfer benefits as this is volatile from year to year based on each individual’s circumstances

3 Fiona Dawson had a change to her committee role during 2025

4 Mahesh Madhavan joined the Board on 1 January 2025

5 Pat Verduin joined the Board on 9 June 2025

6 Stefan Oschmann joined the Board on 1 January 2025 and had a change to his Committee role during the year

7 Mary Harris was a member of the Board until May 2025

8 Mehmood Khan was a member of the Board until July 2025

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Directors’ Remuneration Report continued

Relative importance of spend on pay

The table below shows shareholder distributions (i.e. dividends and share buybacks) and total

employee pay expenditure for 2024 and 2025, together with the percentage change in both.

2025

(£m)

2024

(£m)

% change

2024/25

Total shareholder distribution

2,282 2,709 -16%

Total employee expenditure

2,333 2,446 -5%

1 Details of shareholder distribution are set out in Notes 24 and 28 to the Financial Statements and are made up of dividends

of £1,403 million and share buybacks of £879 million

2 Details of employee expenditure are set out in Note 5 to the Financial Statements

Payments to past Directors (audited)

No other benefits or payments were delivered to former Directors in the year.

Performance graph

The graph below shows the TSR of the Company and the UK FTSE 100 Index over the period

since 1 January 2016. This shows the growth in the value of a hypothetical holding of £100

invested on 31 December 2015. The FTSE 100 Index was selected on the basis that it contains

companies of a comparable size, in the absence of an appropriate industry peer group in the UK.

TSR since 1 January 2016

£ value of £100 invested at 1 January 2016

The table below sets out the single figure of total remuneration for the role of CEO over the last

10 years.

(£000)

CEO single figure of

remuneration Kris Licht

Nicandro

Durante

Laxman

Narasimhan

Rakesh

Kapoor

Annual

bonus (as a

percentage

of maximum)

LTIP

vesting (as a

percentage

of maximum)

2016 15,289 0% 50%

2017 8,999 0% 50%

2018 14,314 84% 65%

2019 4,599

938 12%

2020 8,434

100% 0%

2021 5,967 91% 21.5%

2022 2,118 918 100%

1 0 0 %

2023 3,407

5,260 82% 78%

6,7

2024 5,842

65% 68%

2025 5,800

56% 63%

1 Includes buyouts in respect of legacy arrangements from previous employer

2 Zero for Rakesh Kapoor

3 Laxman Narasimhan was not with the Group at the time these awards were granted

4 Laxman Narasimhan was not eligible for a 2022 APP following his resignation as CEO

5 Nicandro Durante was a NED at the time these awards were granted and therefore did not receive an award; Laxman

Narasimhan’s award lapsed following his resignation as CEO

6 Includes the LTIP which was granted in relation to Kris Licht’s previous role which did not sit on the Board

7 Nicandro Durante was not with the Group at the time these awards were granted

2016

Reckitt FTSE 100

Source: LSEG Datastream

112

119

115

133

103

122

108

143

118

126

118

150

110

157

106

169

185

223

129

100

125

150

175

200

2017 2018 2019 2020 2021 2022 2023 2024 2026

225

2025

250

100

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Directors’ Remuneration Report continued

Single total figure of 2025 remuneration for NEDs and implementation for 2026 (audited)

The following NED fee policy will apply from 1 January 2026. The table also sets out the fees that

were in place for the year ended 31 December 2025.

2026 fees 2025 fees

Cash fee

(£)

Fee delivered

in Reckitt

(£)

Cash fee

(£)

Fee delivered

in Reckitt

(£)

Base fees

Chair of the Board 570,000 190,000 532,500 177,500

Non-Executive Director 89,250 29,750 86,250 28,750

Additional fees

Chair of Committee 40,000 – 40,000 –

Member of Committee 22,500 – 22,500 –

Designated Non-Executive Director for

Engagement with Company’s Workforce 22,500 – 22,500 –

Senior Independent Director 40,000 – 40,000 –

Chair and NED fees were reviewed during the year taking into account the time commitment

required to meet the scope and responsibilities of the roles, the increases given to the wider

workforce and market practice. The fee for the Chair of the Board has been increased to

£760,000, positioning the fee around the median of the FTSE 30 (excluding financial services).

The basic NED fee will increase to £119,000, an increase of c.3.5%. For 2026, we have introduced

a fee for the members of the Nomination Committee, to align with the additional membership

fees for the other Board Committees. We will continue to review NED fees to ensure they are

appropriate and competitive against the market.

In addition, NEDs are eligible to receive support from the Company to complete a UK tax return,

if required.

The proportion delivered in Reckitt shares continues to be 25% of the base fee, being £190,000

for the Chair and £29,750 for the NEDs.

The table below sets out a single figure for the total remuneration received by each NED for the

year ended 31 December 2025 and the prior year:

2025 fees 2024 fees

Cash

(£)

Total

(£)

Cash

(£)

Total

(£)

Sir Jeremy Darroch 532,500 177,500 710,000 385,833 122,500 508,333

Andrew Bonfield 166,250 28,750 195,000 140,833 27,500 168,333

Elane Stock 131,250 28,750 160,000 115,833 27,500 143,333

Fiona Dawson

120,019 28,750 148,769 59,792 13,750 73,542

Mahesh Madhavan 108,750 28,750 137,50 0 – – –

Margherita Della Valle 108,750 28,750 137,500 102,500 27,500 130,000

Marybeth Hays 131,250 28,750 160,000 103,016 25,208 128,224

Pat Verduin

1,2

68,952 14,375 83,327 – – –

Stefan Oschmann

118,614 28,750 147,364 – – –

Tamara Ingram 108,750 28,750 137,50 0 102,500 27,500 130,000

Mary Harris

44,953 11,979 56,932 119,167 27,500 146,667

Mehmood Khan

4,5

70,901 28,750 99,651 112,500 27,500 140,000

1 Fiona Dawson, Pat Verduin and Stefan Oschmann had changes to their committee roles during the year which is reflected

intheir fee above

2 Pat Verduin joined the Board on 9 June 2025. Fees shown for 2025 are paid from this date

3 Mary Harris was a member of the Board until May 2025

4 Mehmood Khan was a member of the Board until July 2025

5 Mehmood Khan received the full fee delivered by share purchase as this was arranged prior to him stepping down from

theBoard

Travel and expenses for NEDs are incurred in the normal course of business, for example, in

relation to attendance at Board and Committee meetings. The costs associated with these are

all met by the Company.

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Directors’ Remuneration Report continued

Summary of shareholder voting at the 2025 AGM

The following table shows the results of the voting on the 2024 Directors’ Remuneration Report

and 2024 Directors’ Remuneration Policy at the 2025 AGM:

Votes for

For

Votes

against

Against

% Total

Votes

withheld

Approve the 2024 Directors’

Remuneration Report 511,554,831 96.08% 20,866,112 3.92% 532,420,943 417,521

Approve the Directors’

Remuneration Policy 500,172,163 94.12% 31,239,828 5.88% 531,411,991 1,426,472

The Remuneration Committee had extensive dialogue with shareholders during 2024 on the

proposed 2025 Remuneration Policy, including engaging with shareholders representing

approximately 40% of our shareholder register as well as the key proxy advisors. The majority of

shareholders and advisory bodies providing input were supportive of the proposals and noted

that no significant changes were being made to our Remuneration Policy. This was

demonstrated by the high levels of support received for both the Policy and Annual Report on

Remuneration at the 2025 AGM. In December 2025 the Remuneration Committee Chair engaged

shareholders representing more than 55% of our register with regards to remuneration for the

CEO and application of an upwards adjustment to the annual bonus.

Directors’ service contracts

NEDs have letters of engagement which set out their duties and time commitment expected.

They are appointed for an initial three-year term, subject to election and annual re-election by

shareholders. Appointments are renewable for subsequent three-year terms by mutual consent.

Details are set out below:

Length of service as of

31December 2025

Date of appointment Years Months

Sir Jeremy Darroch 1 November 2022 3 2

Andrew Bonfield 1 July 2018 7 6

Elane Stock 1 September 2018 7 4

Fiona Dawson 1 June 2024 1 7

Mahesh Madhavan 1 January 2025 0 12

Margherita Della Valle 1 July 2020 5 6

Marybeth Hays 1 February 2024 1 11

Pat Verduin 9 June 2025 0 6

Stefan Oschmann 1 January 2025 0 12

Tamara Ingram 1 February 2023 2 11

The CEO and CFO service contracts contain a 12-month notice period. Directors’ service contracts

and letters of engagement are available for inspection at the Company’s registered office.

Advisors

Deloitte LLP (Deloitte) was appointed by the Remuneration Committee as independent advisor

effective from 1 January 2014 following a review of the advisor in late 2013. The Committee

undertakes due diligence periodically to ensure that Deloitte remains independent of the

Company and that the advice provided is impartial and objective. Deloitte is a founding member

of and signatory to the Code of Conduct for Remuneration Consultants, details of which can be

found at www.remunerationconsultantsgroup.com. During 2025, Deloitte LLP also provided the

Group with advice and compliance support in a number of areas, including corporate, indirect

and employment taxes, global mobility, and advisory and technology consulting.

These services were provided under separate engagement terms and the Committee is

satisfied that the provision of these services did not impair Deloitte’s ability to advise the

Committee independently. Deloitte’s total fees for the provision of remuneration services were

£227,000 on the basis of time and materials. It should be noted that although we are only

required to disclose the value of fees for services which materially assisted the Remuneration

Committee, as with previous years, we have disclosed the full value of remuneration services

from Deloitte, which includes advice to management and to the Remuneration Committee.

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Directors’ Remuneration Report continued

Directors’ interests in shares and options under the LTIP

and buyout awards (audited)

Grant date

Award

at grant date

Granted

during the

year

Dividend

equivalents

accrued from

grant date

Exercised/

vested during

the year

Lapsed during

the year

31 December

2025

Option price

(£)

Market price at

date of award

(£)

Market

price

at date of

exercise/

vesting

(£)

Exercise/vesting

period

Kris Licht

Performance-based

share awards

20 May 2022 40,000 3,533 29,600 13,933 62.42 48.93 May 2025

21 March 2023 40,000 4,759 44,759 59.18 March 2026

6 March 2024 75,000 6,418 81,418 50.14 March 2027

6 March 2025 87,500 3,477 90,977 52.94 March 2028

Performance-based

share options

1 May 2020 50,000 50,000 65.20 – May 2023–May 2030

28 May 2021 50,000 39,000 64.67 – May 2024–May 2031

20 May 2022 80,000 54,400 25,600 54,400 63.32 – May 2025–May 2032

21 March 2023 80,000 80,000 58.28 – Mar 2026–Mar 2033

6 March 2024 150,000 150,000 50.90 – March 2027–March 2034

6 March 2025 175,000 175,000 52.48 March 2028–March 2035

Shannon Eisenhardt

Performance-based

share awards

26 October 2023 29,453 2,520 31,973 55.94 March 2026

6 March 2024 40,000 3,423 43,423 50.14 March 2027

6 March 2025 42,500 1,689 44,189 52.94 March 2028

Performance-based

share options

26 October 2023 58,905 58,905 58.87 March 2026–October 2033

6 March 2024 80,000 80,000 50.90 March 2027–March 2034

6 March 2025 85,000 85,000 52.48 March 2028–March 2035

Buyout awards

26 October 2023 5,248 248 3,816 1,680 55.94 56.54 August 2025

1 Vesting of LTIP awards is subject to performance conditions set by the Remuneration Committee and the awards are subject to an additional two-year holding period commencing at the end of the performance period

2 Dividend equivalents accrue on performance shares during the vesting period and vest subject to the same performance conditions

3 The buyout award for Shannon Eisenhardt was subject to the same performance conditions as the Reckitt 2022 LTIP which vested at 68%, as reported in the 2024 Director’s Remuneration Report

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Directors’ Remuneration Report continued

Directors’ interests in shares in the Deferred Bonus Plan

(audited)

1 January 2025

Grant date

Award

at grant date

Granted during

the year

Vested during

the year

(including

dividend

equivalents)

Lapsed during

the year

31 December

2025

Option price

(£)

Market price

at date

of award

(£)

Market price

at date

of vesting

(£) Vesting period

Kris Licht

Deferred Bonus Plan 21 March 2022 5,997 6,634 57.92 51.94 March 2025

Deferred Bonus Plan 21 March 2023 10,041 10,041 58.28 March 2026

Deferred Bonus Plan 21 March 2024 18,295 18,295 43.00 March 2027

Deferred Bonus Plan 21 March 2025 19,751 19,751 51.94 March 2028

Shannon Eisenhardt

Deferred Bonus Plan 21 March 2024 3,359 3,359 43.00 March 2027

Deferred Bonus Plan 21 March 2025 11,371 11,371 51.94 March 2028

1 One-third of the annual bonus is delivered in the form of conditional share awards which are deferred for three years

2 Dividend equivalents accrue on deferred bonus shares during the vesting period and will be disclosed on vesting

Executive employees may also participate in the all-employee Sharesave Scheme on the same basis as all other employees. The table below details options held.

1 January 2025

Sharesave Scheme Grant date

1 January

2025

Granted during

the year

Exercised

during the year

Lapsed during

the year

31 December

2025

Option price

(£)

Market price

atexercise

(£) Exercise period

Kris Licht 26 March 2024 780 – – – 780 40.49 – May 2029- Oct 2029

Shannon Eisenhardt 26 March 2024 780 – – – 780 40.49 – May 2029- Oct 2029

With the exception of the Directors’ total beneficial interests shown on page 97, which were impacted by the share consolidation which took place on 2 February 2026, there have been no other

changes to the Directors’ interests as set out in the above tables between 31 December 2025 and 4 March 2026.

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Directors’ Remuneration Report continued

Directors’ interests in the share capital of the Company (audited)

The Directors in office at the end of the year and those in office at 4 March 2026 had the following

beneficial interests in the ordinary shares of the Company:

4 March

2026

31 December

2025

31 December

2024

Sir Jeremy Darroch 3,182 3,315 1,663

Andrew Bonfield 1,638 1,707 1,427

Elane Stock 4,801 5,002 4,717

Fiona Dawson 774 807 298

Kris Licht 56,228 58,584 40,822

Mahesh Madhavan 496 517 –

Margherita Della Valle 1,272 1,325 1,058

Marybeth Hays 544 567 290

Pat Verduin

129 135 –

Shannon Eisenhardt 5,026 5,239 3,071

Stefan Oschmann 316 330 –

Tamara Ingram 823 858 565

Mary Harris

– 3,597 3,597

Mehmood Khan

– 1,418 1,418

1 Pat Verduin joined the Board on 9 June 2025

2 Mary Harris stepped down from the Board on 8 May 2025 and her interest in shares is shown up to this date

3 Mehmood Khan stepped down from the Board on 24 July 2025 and his interest in shares is shown up to this date

The number of shares at 4 March 2026 reflect the reduction in the number of shares due to the 24 for 25 share consolidation

which took place on 2 February 2026

No person who was a Director (or a Director’s connected person) on 31 December 2025 and at 4 March 2026 had any notifiable

share interests in any subsidiary

The Company’s Register of Directors’ Interests (which is open to inspection) contains full details of Directors’ shareholdings and

options to subscribe for shares

As approved and signed on behalf of the Board of Directors

Fiona Dawson

Chair of the Remuneration Committee

Reckitt Benckiser Group plc

4 March 2026

This Directors’ Remuneration Report has been prepared in accordance with the provisions of the Companies Act 2006 and

Schedule 8 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (asamended).

Thereport meets the requirements of the FCA Listing Authority’s Listing Rules and the Disclosure Guidance and Transparency

Rules. Inthis report we describe how the principles of good governance relating to Directors’ remuneration, as set out in the

UKCorporate Governance Code (January 2024) (theCode), are applied in practice. The Remuneration Committee confirms that

throughout the financial year the Company has complied withthese governance rules and best practice provisions.

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Introduction

We present below our Directors’ Report for

the year ended 31 December 2025. Certain

matters required to be included in this

Directors’ Report are included in the Strategic

Report on pages 1-52, including an indication

of the likely future developments of the

Business, R&D activities of the Group and

details of important events affecting the

Company. The Corporate Governance Report

can be found on pages 53-116 and is deemed

to be incorporated into this Directors’ Report

by reference.

Further disclosure requirements which are

deemed to form part of the management

report can be found on the following pages of

this Annual Report and are incorporated into

this Directors’ Report by reference:

Section Pages

Acquisitions and disposals 176

Awards under employee share

schemes and long-term incentive

schemes

174-175

Corporate Governance Report 53-116

Statement of Directors’

Responsibilities, including

disclosure of information to the

Auditor

116

Disclosure of Greenhouse Gas

(GHG) emissions

42, 44

Employment policy and

employee involvement

8-9

Engagement with employees,

suppliers, customers and others

65-67

Environmental, social and

governance (ESG) matters

42-47

Financial instruments and

financial risk management

158-164

Future developments in the

Business

1-52

Post-Balance Sheet events 177, 185

Research and development

activities

12-13, 31-33

Shareholder information 210-213

Sustainability and corporate

responsibility

42-47

Viability Statement 52

Charitable donations 45-46

Subsidiary and other related

undertakings (including overseas

branches)

186-197

Information on the Board’s stakeholder

engagement and activities can be found on

pages 65-67 and further information is also

set out in the Section 172 Statement, which

can be found on page 68.

The Strategic Report and the Directors’

Report together constitute the management

report as required under Rule 4.1.8R of the

Disclosure Guidance and Transparency Rules.

Results and dividends

The Consolidated Income Statement can be

found on page 133. The profit for the year

attributable to equity shareholders of the

Company amounted to £3,182 million.

The Directors resolved to pay an interim

dividend of 84.4 pence per ordinary share

(2024: 80.4 pence), which was paid to

shareholders on 18 September 2025. As

announced on the 31 December 2025, Reckitt

agreed the divestment of its Essential Home

business with excess cash being returned to

shareholders by means of a special dividend

of 235 pence per ordinary share. As approved

at the General Meeting held on 27 January

2026, the special dividend was paid to

shareholders on 20 February 2026.

The Directors recommend a final dividend for

the year of 127.8 pence per share (2024: 121.7

pence) which, together with the interim

dividend, makes a total dividend for the year

of 212.2 pence per share (2024: 202.1 pence).

This figure excludes the special dividend paid

on 20 February 2026. During the year no

shareholders waived their right to receive

dividend payments. The final dividend, if

approved by the shareholders at the

forthcoming Annual General Meeting (AGM) of

the Company, will be paid on 12 June 2026 to

shareholders on the register at the close of

business on 10 April 2026.

Directors

Details of the Company’s Directors who

served during the financial year ended 31

December 2025 and details of Directors

appointed during 2026 can be found on pages

54-55. The rules governing the appointment

and retirement of Directors are set out in the

Company’s Articles of Association (the

Articles) and all appointments are made in

accordance with the Code. Under the terms

of reference of the Nomination Committee, all

Director appointments must be

recommended by the Nomination Committee

for approval by the Board of Directors. All

Directors must submit themselves for election

or re-election each year at the AGM. With the

exception of Margherita Della Valle and

Mahesh Madhavan who have notified the

Board that they will not be standing for

re-election, all other Directors will offer

themselves for election or re-election at the

2026 AGM in compliance with the Code.

Details of the Directors standing for election

or re-election can be found in the 2026 Notice

of AGM.

Information on the service agreements of

Executive Directors can be found in the

Directors’ Remuneration Report on pages

84-111. The letters of appointment of the

Non-Executive Directors are available for

inspection at the Company’s registered office.

Powers of Directors

The Board of Directors is responsible for the

management of the Business and may

exercise all powers of the Company subject

to the provisions of the Company’s Articles

and the Companies Act 2006 (CA 2006). The

Articles contain specific provisions and

restrictions regarding the Company’s power

to borrow money. Powers relating to the

alteration of share capital are also included in

REPORT OF THE DIRECTORS

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113

Strategic report Governance Financial statements Other information

Report of the Directors continued

the Articles and shareholders are asked to

renew such authorities each year at the AGM.

A copy of the Articles is available on the

Company’s website at reckitt.com/ investors/

corporate-governance or can be obtained

upon written request from the Company

Secretary or the UK Registrar of Companies,

Companies House.

Directors’ insurance and indemnities

The Company indemnifies the Directors and

Officers of the Company and any Group

subsidiary to the extent permitted by section

236 of CA 2006 in respect of the legal

defence costs for claims against them and

third-party liabilities. The indemnity would not

provide cover for a Director or Officer if that

individual was found to have acted

fraudulently or dishonestly.

The Directors’ and Officers’ liability insurance

cover was maintained throughout the year

ended 31 December 2025 at the Company’s

expense.

Directors’ interests

A statement of Directors’ interests in the

share capital of the Company is shown on

page 111 of the Directors’ Remuneration

Report. Details of Executive Directors’ options

to subscribe for shares in the Company are

included on pages 109-110 in the audited part

of the Directors’ Remuneration Report.

During the year, no Director had a material

interest in any derivative or financial

instrument relating to the Company’s shares.

Details of the Directors’ remuneration are

disclosed in the Directors’ Remuneration

Report on pages 84-111. No Director has a

material interest in any ‘contract of

significance’ (as defined by the FCA) to which

the Company, or any of its subsidiary

undertakings, is a party as at 31 December

2025.

Share capital

As at 31 December 2025, the Company’s

issued share capital consisted of 702,089,339

ordinary shares of 10 pence each of which

672,380,209 carried voting rights and

29,709,130 ordinary shares were held in

Treasury.

As announced on 7 January 2026 and

approved by shareholders at a General

Meeting on 27 January 2026, the Company

completed a share consolidation of its issued

share capital with effect from 2 February

2026. Following the consolidation, the

Company’s issued share capital consisted of

674,005,752 ordinary shares of 10 5/12 pence

each. As of the last practicable date, the

Company’s issued share capital consisted of

674,005,752 ordinary shares of 10 5/12 pence

of which 644,956,962 carried voting rights and

29,048,790 ordinary shares were held in

Treasury.

Each share carries the right to one vote at

general meetings of the Company. Details of

changes to the ordinary shares issued and of

options and awards granted during the year

are set out in Note 24 to the Financial

Statements.

The rights and obligations attached to the

ordinary shares are contained in the

Company’s Articles. There are no restrictions

on the voting rights attached to the

Company’s ordinary shares or the transfer of

securities in the Company except in the case

of transfers of securities:

• That certain restrictions may from time to

time be imposed by laws and regulations

(for example, insider trading laws)

• Pursuant to the UK Listing Rules of the

United Kingdom Listing Authority whereby

certain employees of the Company require

the approval of the Company to deal in the

Company’s ordinary shares

No person holds securities in the Company

which carry special voting rights with regard

to control of the Company. The Company is

not aware of any agreements between

holders of securities that may result in

restrictions on the transfer of securities or on

voting rights.

Allotment of shares

At the 2025 AGM, authority was granted to

the Directors under section 551 of CA 2006 to

allot shares or grant rights to subscribe for, or

convert any security into, shares of the

Company. At the 2026 General Meeting,

authority was granted to the Directors to

replace the authority granted at the 2025

AGM to enable the Company to allot new

ordinary shares and to disapply pre-emptive

rights, to cover the period between the date

of the General Meeting and the 2026 AGM.

At the 2026 AGM, a resolution will be

proposed to the shareholders to renew the

Directors’ authority to allot equity shares

representing approximately one-third of the

Company’s issued share capital, excluding

Treasury shares, as at the latest practicable

date prior to the publication of the Notice of

AGM.

In accordance with the Investment

Association Share Capital Management

Guidelines, Directors will once again seek

authority to allot further ordinary shares, in

connection with a pre-emptive offer by way

of a rights issue, up to a further one-third of

the Company’s existing issued share capital

on the same date. The authorities sought

would, if granted, expire at the earlier of six

months after the Company’s next accounting

reference date, or at the conclusion of the

AGM of the Company held in 2027, whichever

is the sooner.

Under section 561 of CA 2006, shareholders

have a right of first refusal in relation to

certain issues of new shares. A special

resolution will also be proposed to renew the

Directors’ power to allot shares in the capital

of the Company without complying with the

pre-emption rights in the CA 2006 in certain

circumstances up to a maximum of 10% of the

Company’s issued share capital.

This disapplication authority sought is in line

with institutional shareholder guidance and, in

particular, with the Pre-Emption Group

Statement of Principles issued in November

2023.

This authority will maintain the Company’s

flexibility in relation to future share issues,

including issues required to finance business

opportunities, should appropriate

circumstances arise.

Authority to purchase own shares

Authority was granted to the Directors at the

2025 AGM for the purposes of section 701 of

CA 2006 to repurchase shares in the market.

This authority was re-approved by

shareholders at the 2026 General Meeting and

remains valid until the conclusion of the

forthcoming AGM.

On 24 July 2024, the Company announced a

£1 billion share buyback programme which

was completed on 30 June 2025 (the 2024

Programme).

On 24 July 2025, the Company announced,

consistent with its capital allocation

framework, a further £1 billion share buyback

programme to be carried out over 12 months

(the 2025 Programme). On 28 July 2025, the

Company announced the commencement of

the first tranche of the 2025 Programme to

return up to £250 million to shareholders,

which completed on 21 October 2025. On 26

September 2025, the Company announced

the second tranche of the 2025 Programme

to return up to £250 million to shareholders.

On 30 January 2026, the second tranche came

to an end with £206 million returned to

shareholders.

During the financial year ended 31 December

2025, the Company purchased in aggregate

16,382,499 ordinary shares of 10 pence each.

The total cost of the shares purchased during

Reckitt Annual Report and Accounts 2025

114

Strategic report Governance Financial statements Other information

Report of the Directors continued

the financial year ended 31 December 2025

was £879 million. A further 921,790 shares

have been purchased between 1 January 2026

and 30 January 2026 at a cost of £56 million.

Under authority granted to Directors under

section 729 of CA 2006 to cancel shares held

in Treasury, 30,000,000 ordinary 10 pence

shares were cancelled from Treasury on 15

December 2025.

As at the last practicable date 29,048,790

ordinary shares were held in Treasury

(representing 4.5% of the issued ordinary

shares) for the purposes of satisfying the

Company’s obligations under employee equity

incentive schemes.

Shares held in Treasury are not eligible to

participate in dividends and do not carry any

voting rights.

At the 2026 AGM, the Directors will seek to

renew the authority granted to them under

section 701 of CA 2006 to repurchase shares

in the market. Such authority, if approved, will

be limited to a maximum of 64,490,000

ordinary shares, representing less than 10% of

the Company’s issued ordinary share capital

(excluding Treasury shares) calculated as at

the latest practicable date prior to publication

of the Notice of AGM, and sets the minimum

and maximum prices which may be paid.

Change of control and

significantagreements

There are a number of agreements that take

effect, alter or terminate upon a change of

control of the Company following a takeover.

The shareholder agreement between the

Company and JAB Holdings B.V. (JAB) at the

time of the merger in 1999 entitled JAB to

nominate Board Directors. A holding in excess

of 20% or 10% of the Company’s ordinary

shares entitles JAB to nominate two Directors

or one Director respectively. JAB’s current

holding is below this amount and there is

currently no nominated Director on the Board.

None of these are deemed to be significant in

terms of their potential impact on the

business of the Group as a whole.

There are no significant agreements between

the Company and its Directors or employees

providing for compensation for loss of office

or employment that occurs because of a

takeover bid, except that provisions of the

Company’s share plans may cause options

andawards granted under such plans to vest

on a takeover, and if the employment of

anExecutive Director or other employee

isterminated by the Company following a

takeover then there may be an entitlement

toappropriate notice and/or compensation

asprovided in applicable contracts or terms

of employment.

There is no information that the Company

isrequired to disclose about persons

withwhom it has contractual or other

arrangements with, which are essential

tothebusiness of the Company.

Employees

The Group is committed to the principle

ofequal opportunity in employment: no

applicant or employee receives less

favourable treatment on the grounds of age,

disability, medical condition, colour, ethnicity,

race, citizenship, place of origin, religion, faith,

pregnancy, family status, marital status, sexual

orientation, sex, gender identity, gender

expression, political affiliation, protected

veteran status, socioeconomic background,

union affiliation, the association or perceived

association with a person identified by one or

more of the above characteristics, and any

other basis protected by applicable law.

Employment applications are considered on

the basis of aptitude, merit, and relevant skills,

and fair consideration is given to all

applications. We have issued specific

guidance and training on inclusive recruitment

practices for managers with hiring

responsibilities. Where an employee has an

existing disability or becomes disabled during

their employment, practical efforts are made

to assist the employee in continuing their

current role, including appropriate

workplaceadjustments.

All employees are treated in a fair and

inclusive manner throughout their careers,

inclusive of training, learning and development

opportunities, and career progression as

warranted. Further details of our Inclusion and

Respectful Workplace Policy can be found at

reckitt.com/our-company/policies-reports.

It is essential to the continued improvement

inperformance, efficiency and productivity

throughout the Group that each employee

understands the Group’s strategies, policies

and procedures. Open and regular

communication with employees at all levels

isan essential part of the performance

management process.

Continuous development is a key priority for

us at Reckitt, and we place strong emphasis

on learning through the 50:40:10 approach,

whereby 50% of development comes from

on-the-job learning, 40% from learning

through others, and 10% from formal learning.

It is important to us that each employee has

meaningful performance and development

conversations, starting with objective setting

at the beginning of the year, and continuing

through mid-year and year-end review

discussions. We place equal importance on

what is achieved, as well as how objectives

are achieved – keeping our Leadership

Behaviours at the fore – with colleagues

receiving a rating for both areas at the end

ofthe year. These reviews, as well as informal

development discussions through the year are

also opportunities for employees to discuss

their ongoing development and career

aspirations, and we place a strong emphasis

on employees having high-quality Personal

Development Plans (PDPs) in place.

Employee matters, incentives

andshareownership

Group incentive schemes reinforce financial

and economic factors affecting the

performance of the Business. Employees

typically have three to five performance

objectives which are directly linked to their

job and their specific contribution to the

overall performance of the Group. In addition,

presentations, videos and Q&A sessions are

held for employees around the world on

publication of the Group’s financial results to

provide employees with awareness of the

financial and economic factors affecting the

Company’s performance, and so that

employee views are fed back to management

and taken into account when decisions are

made. Further information on investing in our

people can be found in the People and

Culture section of the Strategic Report on

pages 8-9.

The Company operates three all-employee

share plans. Through these schemes, the

Board encourages employees to become

shareholders and to participate in the Group’s

employee share ownership plans, should they

wish. Savings-related share plans covering

most of the world give employees the

opportunity to acquire shares in the Company

by means of making regular savings.

We currently have around 12,000 colleagues

participating in one of Reckitt’s all-employee

share plans. Further details on our all-

employee share plans and awards made

under executive share plans can be found

inNote 25 on pages 174–175 of the

FinancialStatements.

Reckitt Annual Report and Accounts 2025

115

Strategic report Governance Financial statements Other information

Report of the Directors continued

Political donations

During the year, the Company and its

subsidiaries did not make any political

donations or incur any political expenditure,

nor were any contemplated. In keeping with

previous practice, at the forthcoming AGM

shareholders will be asked to approve, on a

precautionary basis, for the Company and its

subsidiaries to make political donations and

incur political expenditure for the period

ending 31 December 2026.

Financial instruments and risk

The financial risk management objectives and

policies of the Group are set out in Note 15,

from page 158 of the Financial Statements.

The Note sets out information on the

Company’s policy for hedging each major

type of forecasted transactions for which

hedge accounting is used, and our exposure

to currency risk, price risk, credit risk, liquidity

risk and cash flow risk in relation to the use of

financial instruments.

Amendment to Articles of Association

The Articles of the Company were adopted in

2012 and amended in 2015 and 2021. Any

amendments to the Articles may be made in

accordance with the provisions of CA 2006,

by special resolution of the shareholders.

Independent Auditor

A resolution will be put forth at the 2026 AGM

proposing to re-appoint KPMG LLP as External

Auditor of the Company and its subsidiaries

for the year ending 31 December 2026, and to

authorise the Audit Committee to determine

its remuneration for the financial year ending

31 December 2026.

Following a formal and competitive tender

process, the Audit Committee recommended,

and the Board endorsed, the appointment of

PwC as the next External Auditor. Recognising

the good progress being made on Reckitt’s

transformation and to ensure continued focus

thereon, it has been decided that KPMG will

remain External Auditor for the 2026 reporting

cycle with a transition to PwC taking place

in2027.

A resolution will be put to shareholders at the

2027 AGM to approve the appointment of

PwC for the financial year ending

31December 2027.

Application of the UK Corporate

Governance Code 2024

We report against the requirements of the

Code issued by the Financial Reporting

Council. Details of how the Company has

applied the Code principles and provisions

can be found in the Corporate Governance

Report on pages 53-116. The Company is also

monitoring the framework for compliance

with provision 29 of the Code ahead of the

first report against this criterion in 2027.

Substantial shareholdings

As at 31 December 2025, the Company had received the following notices of substantial

interests (3% or more) in the total voting rights of the Company:

Holder Notification Rights

Massachusetts Financial Services Company 16 January 2013

5.00%

Morgan Stanley Investment Management Limited 20 October 2022

4.99%

1 Under a section 793 CA 2006 request, Massachusetts Financial Services Company confirmed on 5 February 2026 that its

aggregate holding had decreased. The voting percentage was not disclosed. The number of shares represents the holding

post the share consolidation undertaken on 30 January 2026

2 Under a section 793 CA 2006 request, Morgan Stanley Investment Management Limited confirmed on 21 January 2026 that

its aggregate holding had decreased. The voting percentage was not disclosed. The number of shares represents the

holding prior to the share consolidation undertaken on 30 January 2026

As at 4 March 2026, the Company has not received any further notifications under DTR 5 of the

Disclosure Guidance and Transparency Rules.

Annual General Meeting (AGM)

The forthcoming AGM of Reckitt Benckiser

Group plc will be held on Thursday 21 May

2026 at 14:00 at the London Heathrow Marriott

Hotel, Bath Road, Hayes, Middlesex UB3 5AN.

A separate Notice of Meeting, setting out the

resolutions to be proposed to shareholders, is

available at reckitt.com/investors/annual-

general-meetings. The Board considers that

each of the resolutions is in the best interests

of the Company and its shareholders as a

whole. The Directors unanimously recommend

that shareholders vote in favour of all the

resolutions, as they intend to do so in respect

of their own beneficial holdings.

By order of the Board

Catheryn O’Rourke

Company Secretary

Reckitt Benckiser Group plc

4 March 2026

103–105 Bath Road

Slough, Berkshire

SL1 3UH

Company registration number: 6270876

Legal Entity Identifier:

5493003JFSMOJG48V108

2025 Reckitt Annual General Meeting

Reckitt Annual Report and Accounts 2025

116

Strategic report Governance Financial statements Other information

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The Directors are responsible for preparing

the Annual Report and the Group and Parent

Company Financial Statements in accordance

with applicable law and regulations.

Company law requires the Directors to prepare

Group and Parent Company Financial

Statements for each financial year. Under that

law, we are required to prepare the Group

Financial Statements in accordance with

UK-adopted international accounting standards

and applicable law and have elected to prepare

the Parent Company Financial Statements in

accordance with UK accounting standards and

applicable law (UK Generally Accepted

Accounting Practice), including FRS 102, the

Financial Reporting Standard applicable in the

UK and Republic of Ireland. The Group, in

addition to complying with its legal obligation to

apply UK-adopted international accounting

standards, has also applied IFRS Accounting

Standards as issued by the International

Accounting Standards Board (IASB).

Under Company Law the Directors must not

approve the Financial Statements unless they

are satisfied that they give a true and fair

view of the state of affairs of the Group and

Parent Company and of the Group’s profit or

loss for that period. In preparing each of the

Group and Parent Company Financial

Statements, the Directors are required to:

• select suitable accounting policies and then

apply them consistently;

• make judgements and estimates that are

reasonable, relevant and reliable;

• for the Group Financial Statements, state

whether they have been prepared in

accordance with UK-adopted international

accounting standards and, due to a

requirement of the US SEC, state they have

been prepared in accordance with IFRS

Accounting Standards as issued by the IASB;

• for the Parent Company Financial

Statements, state whether applicable UK

accounting standards have been followed,

subject to any material departures

disclosed and explained in the Parent

Company Financial Statements;

• assess the Group and Parent Company’s

ability to continue as a going concern,

disclosing, as applicable, matters related to

going concern; and

• use the going concern basis of accounting

unless they either intend to liquidate the

Group or the Parent Company or to cease

operations or have no realistic alternative

but to do so.

The Directors are responsible for keeping

adequate accounting records that are

sufficient to show and explain the Parent

Company’s transactions and disclose with

reasonable accuracy at any time the financial

position of the Parent Company and enable

them to ensure that its Financial Statements

comply with the Companies Act 2006. They

are responsible for such internal controls as

they determine are necessary to enable the

preparation of Financial Statements that are

free from material misstatement, whether due

to fraud or error, and have general

responsibility for taking such steps as are

reasonably open to them to safeguard the

assets of the Group and to prevent and

detect fraud and other irregularities.

Under applicable law and regulations, the

Directors are also responsible for preparing a

Strategic Report, Directors’ Report, Directors’

Remuneration Report and Corporate

Governance Statement that comply with that

law and those regulations.

The Directors are responsible for the

maintenance and integrity of the corporate

and financial information included on the

Company’s website. Legislation in the UK

governing the preparation and dissemination

of Financial Statements may differ from

legislation in other jurisdictions. In accordance

with Disclosure Guidance and Transparency

Rule (DTR) 4.1.16R, the Financial Statements

will form part of the annual Financial Report

prepared under DTR 4.1.17R and 4.1.18R. The

External Auditor’s Report on these Financial

Statements provides no assurance over

whether the annual Financial Report has been

prepared in accordance with those

requirements.

Responsibility statement of the

Directors in respect of the annual

Financial Report

Each of the Directors, whose names and

functions are listed on pages 54-55 of the

Annual Report, confirm that, to the best of

their knowledge:

• the Financial Statements, prepared in

accordance with the applicable set of

accounting standards, give a true and fair

view of the assets, liabilities, financial

position and profit or loss of the Company

and the undertakings included in the

consolidation taken as a whole; and

• the Annual Report and Financial Statements

includes a fair review of the development

and performance of the Business and the

position of the issuer and the undertakings

included in the consolidation taken as a

whole, together with a description of

theprincipal risks and uncertainties that

they face.

We consider the Annual Report and Financial

Statements, taken as a whole, is fair, balanced

and understandable and provides the

information necessary for shareholders to

assess the Group and Parent’s position,

performance, business model and strategy.

In the case of each Director in office at the

date the Directors’ Report is approved:

• so far as we are aware, there is no relevant

audit information of which the Group and

Parent’s Auditor is unaware; and

• we have taken all the steps that we ought

to have taken as a Director in order to make

ourselves aware of any relevant audit

information and to establish that the Group

and Parent’s Auditor is aware of that

information.

On behalf of the Board

Catheryn O’Rourke

Company Secretary

Reckitt Benckiser Group plc

4 March 2026

103-105 Bath Road

Slough, Berkshire

SL1 3UH

In respect of the Annual Report and Financial Statements

Reckitt Annual Report and Accounts 2025

117

Strategic report Governance Financial statements Other information

1 Our opinion is unmodified

In our opinion:

• the Financial Statements of Reckitt Benckiser Group plc give a true and fair view of the

state of the Group’s and of the Parent Company’s affairs as at 31 December 2025, and

ofthe Group’s profit for the year then ended;

• the Group Financial Statements have been properly prepared in accordance with UK-

adopted international accounting standards;

• the Parent Company Financial Statements have been properly prepared in accordance

withUK accounting standards, including FRS 102, the financial reporting standard applicable

in the UK and Republic of Ireland; and

• the Group and Parent Company Financial Statements have been prepared in accordance

with the requirements of the Companies Act 2006.

Additional opinion in relation to IFRS accounting Standards as issued by the IASB:

• As explained in Note 1 to the Group Financial Statements, the Group, in addition to

complying with its legal obligation to apply UK-adopted international accounting standards,

has also applied IFRS Accounting Standards as issued by the International Accounting

Standards Board (“IASB”).

• In our opinion the Group Financial Statements have been properly prepared in accordance

with IFRS Accounting Standards as issued by the IASB.

What our opinion covers

We have audited the Group and Parent Company Financial Statements of Reckitt Benckiser

Group plc (“the Company”) for the year ended 31 December 2025 (FY25) included in the Annual

Report, which comprise:

Group (Reckitt Benckiser Group plc and its subsidiaries) Parent Company (Reckitt Benckiser Group plc)

Group Income Statement, Group Statement of

Comprehensive Income, Group Balance Sheet,

Group Statement of Changes in Equity, and

Group Cash Flow Statement and Notes 1 to 31 to

the Group Financial Statements, including

theaccounting policies in Note 1.

Parent Company Balance Sheet, Parent

Company Statement of Changes in Equity and

Notes 1 to 12 to the Parent Company Financial

Statements, including the accounting policies

in Note 1.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs

(UK)”) and applicable law. Our responsibilities are described below. We believe that the audit

evidence we have obtained is a sufficient and appropriate basis for our opinion. Our audit

opinion and matters included in this report are consistent with those discussed and included in

our reporting to the Audit Committee.

We have fulfilled our ethical responsibilities under, and we remain independent of the Group in

accordance with, UK ethical requirements including the FRC Ethical Standard as applied to listed

public interest entities.

2 Overview of our audit

Factors driving our view of risks

Following our FY24 audit, and considering developments affecting the Group since then, we

have updated our risk assessment.

The risk of the MJN cash-generating unit (CGU) being impaired has decreased because its

carrying value was reduced by impairment charges in prior years, and its current year’s trading

results are consistent with the forecasts used for the FY24 impairment testing.

The risk of inaccurate revenue recognition for trade spend agreements has continued to reduce.

This is because retrospective reviews have shown continued improved accuracy of the accruals.

We have added a new key audit matter associated with the accounting for the divestment of

the Essential Home business which was completed in FY25.

We have not observed a material change in the level of risk relating to the remaining Key Audit

Matters.

Our risk assessment also considered compliance with laws and regulations, specifically those

that could reasonably be expected to have a material effect on the Financial Statements.

Key Audit Matters VS FY24 Item

Recoverability of the indefinite life intangible assets relating to the

MJNCGU  4.1

Revenue recognition in relation to trade spend arrangements and

associated accruals  4.2

Potential liabilities arising from the US litigation concerning Necrotising

Enterocolitis (NEC)  4.3

Provisions for uncertain tax positions  4.4

Potential liabilities arising from the amendment to the South Korean

Humidifier Sanitiser (HS) law  4.5

Accounting for the divestment of the Essential Home business

4.6

Recoverability of the Parent Company’s investment in the subsidiary,

Reckitt Benckiser Limited  4.7

Audit Committee interaction

During the year, the Audit Committee met five times. KPMG are invited to attend all Audit

Committee meetings and are provided with an opportunity to meet with the Audit Committee

in private sessions without the Executive Directors being present. For each Key Audit Matter, we

have set out communications with the Audit Committee in section 4, including matters that

required particular judgement for each.

The matters included in the Audit Committee Chair’s report on pages 74-81 are materially

consistent with our observations of those meetings.

Independent Auditor’s Report

To the members of Reckitt Benckiser Group plc

Reckitt Annual Report and Accounts 2025

118

Strategic report Governance Financial statements Other information

Independent Auditor’s Report continued

2 Overview of our audit continued

Our Independence

We have fulfilled our ethical responsibilities under, and we remain independent of the Group in

accordance with, UK ethical requirements including the FRC Ethical Standard as applied to listed

public interest entities.

We have not performed any non-audit services during FY25 or subsequently which are

prohibited by the FRC Ethical Standard.

We were first appointed as auditor by the shareholders for the year ended 31 December 2018.

The period of total uninterrupted engagement is for the eight financial years ended 31

December 2025.

The Group engagement partner is required to rotate every five years. As these are the first set

of the Group’s Financial Statements signed by Zulfikar Walji and the audit of the financial

statements for the year ending 31 December 2026 being KPMG’s final year as the auditor of

Reckitt Benckiser Group plc (subject to Shareholder approval), future rotation requirements are

not applicable.

The average tenure of component engagement partners is 3 years, with the shortest being 1

and the longest being 7 years.

Total audit fee £20.0m

Audit related fees (including interim review) £1.1m

Other services £7.4m

Non-audit fee as a % of total audit and audit related fee % 35%

Date first appointed 03 May 2018

Uninterrupted audit tenure 8 years

Next financial period which requires a tender 2037

Tenure of Group engagement partner 1 year

Average tenure of component engagement partners 3 years

Materiality

(Item 6 below)

The scope of our work is influenced by our view of materiality and our assessed risk of material

misstatement.

We have determined overall materiality for the Group Financial Statements as a whole at £140m

(FY24: £140m) and for the Parent Company Financial Statements as a whole at £70m (FY24:

£70m).

Consistent with FY24, we determined that Group normalised profit before tax (‘PBTCO’) remains

the benchmark for the Group as it is the metric in the primary statements which best reflects

the focus of the Financial Statements’ users. As such, we based our Group materiality on

normalised PBTCO of £3,038m (FY24: £3,123m), of which it represents 4.6% (FY24: 4.5%).

Materiality for the Parent Company Financial Statements was determined with reference to a

benchmark of Parent Company total assets of which it represents 0.45% (FY24: 0.45%).

Materiality levels used in our audit

Group Materiality

Group Performance

Materiality

Highest Component

Materiality

Parent Company

Materiality

Lowest Component

Materiality

Audit Misstatement

Posting Threshold

140

FY25 £m FY24 £m

Group scope

(Item 7 below)

We have performed risk assessment and planning procedures to determine which of the

Group’s components are likely to include risks of material misstatement to the Group Financial

Statements, the type of procedures to be performed at these components and the extent of

involvement required from our component auditors around the world.

The Group operates in more than 60 countries across six continents, with the largest market

being the United States of America. We scoped the audit by obtaining an understanding of the

Group and its environment and assessing the risk of material misstatement in each financial

statement caption, at both the Group and component level.

Based on this assessment, we have determined a final scope that includes 53 (FY24: 52) of the

Group’s 357 (FY24: 363) reporting components across 24 (FY24: 25) countries.

140

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2 Overview of our audit continued

Group scope continued

(Item 7 below) continued

The components within the scope of our work accounted for the percentages illustrated below.

In addition, we have performed Group level analysis on the remaining components to determine

whether further risks of material misstatement exist in those components.

We consider the scope of our audit, as communicated to the Audit Committee, to be an

appropriate basis for our audit opinion.

IFRS profit

before tax

FY24: 76%

Group Total

assets

FY24: 84%

86% 82%

Group

Revenue

FY24: 81%

81%

We performed audit procedures in relation to components

that accounted for the following percentages:

Our audit procedures covered

81% of Group revenue:

The impact of climate change on our audit

In planning our audit, we have considered the potential impact of risks arising from climate

change on the Group’s business and its Financial Statements. The Group has set out its targets

as part of their 2030 Sustainability Ambitions, which include energy, emissions, water, waste and

packaging related metrics. This includes a 65% reduction in GHG emissions in operations and

50% reduction in product carbon footprint both by 2030. Further information is provided in the

Sustainability Performance Review on page 42.

Whilst the Group has set these targets, in Note 1 to the Consolidated Financial Statements the

Directors have stated they have considered the impact of climate change risks and they do not

believe there is a material impact on the financial reporting judgements and estimates and as a

result the valuations of the Group’s assets and liabilities have not been significantly impacted by

these risks as at 31 December 2025.

As a part of our audit, we have performed a risk assessment to determine if the potential

impacts of climate change may materially affect the Financial Statements and our audit. We did

this by making enquiries of management and inspecting internal reports in order to

independently assess the climate-related risks and their potential impact.

The most likely potential impact of climate risk and plans on these Financial Statements would

be on the forward-looking assessments of non-current assets.

We have considered the sensitivity of the assumptions used in the impairment testing of

goodwill and indefinite-life intangible assets. Given that the climate change related assumptions

are not considered a major source of estimation uncertainty, the carrying amounts of these

assets in the Financial Statements are not considered to be materially sensitive to the impact of

risks arising from climate change. We considered the impact of ESG related costs on the value in

use of the Group’s CGUs, the impact of such costs on cash flows is minimal and not considered a

key assumption when assessing impairment. We have considered the impact of climate change

targets on the fair value of pension assets. However, given the nature of the assets being

primarily bonds and insurance contracts, this has not been considered to be a key assumption in

the valuation. We have also considered the costs and consumer preferences impact of climate

change as part of our consideration of the going concern basis of preparation.

We determined that climate related risks do not have a significant impact on our audit or

keyaudit matters. We have read the Group’s disclosures of climate related information in the

Strategic Report and the Group’s TCFD Summary on pages 198-202 and considered consistency

withthe Financial Statements and our audit knowledge.

3 Going concern, viability and principal risks and uncertainties

The Directors have prepared the Financial Statements on the going concern basis as they do

notintend to liquidate the Group or the Parent Company or to cease their operations, and as

they have concluded that the Group’s and the Parent Company’s financial position means

thisisrealistic. They have also concluded there are no material uncertainties that could cast

significant doubt over their ability to continue as a going concern for at least a year from the

date of approval of the Financial Statements (“the going concern period”).

Going concern

We used our knowledge of the Group, its industry, and the general economic environment to

identify the inherent risks to its business model and analysed how those risks might affect the

Group’s and Parent Company’s financial resources or ability to continue operations over the going

concern period. The risks that we considered most likely to adversely affect the Group’s and Parent

Company’s available financial resources and metrics relevant to debt covenants over this period

were a cyber security event disrupting operations and potential adverse settlement outcomes from

the ongoing NEC litigation.

We considered whether these risks could plausibly affect the liquidity or covenant compliance in

thegoing concern period by assessing the degree of downside assumption that, individually and

collectively, could result in a liquidity issue, considering the Group’s current and projected cash and

facilities (a reverse stress test). We also assessed the completeness of the going concern

disclosure.

Accordingly, based on those procedures, we found the Directors’ use of the going concern basis of

accounting without any material uncertainty for the Group and Parent Company to be acceptable.

However, as we cannot predict all future events or conditions and as subsequent events may result

in outcomes that are inconsistent with judgements that were reasonable at the time they were

made, the above conclusions are not a guarantee that the Group or the Parent Company will

continue in operation.

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3 Going concern, viability and principal risks and uncertainties continued

Our conclusions

• We consider that the Directors’ use of the going concern basis of accounting in the

preparation of the Financial Statements is appropriate;

• We have not identified, and concur with the Directors’ assessment that there is not, a material

uncertainty related to events or conditions that, individually or collectively, may cast significant

doubt on the Group’s or Parent Company’s ability to continue as a going concern for the going

concern period;

• We have nothing material to add or draw attention to in relation to the Directors’ Statement in

Note 1 to the Financial Statements on the use of the going concern basis of accounting with

no material uncertainties that may cast significant doubt over the Group and Parent

Company’s use of that basis for the going concern period, and we found the going concern

disclosure in Note 1 to be acceptable; and

• The related statement under the UK Listing Rules is materially consistent with the Financial

Statements and our audit knowledge.

Disclosures of emerging and principal risks and longer-term viability

Our responsibility

We are required to perform procedures to identify whether there is a material inconsistency

between the Directors’ disclosures in respect of emerging and principal risks and the viability

statement, and the Financial Statements and our audit knowledge.

Based on those procedures, we have nothing material to add or draw attention to in relation to:

• the Directors’ confirmation within the Corporate Governance Report on page 58 that they

have carried out a robust assessment of the emerging and principal risks facing the Group,

including those that would threaten its business model, future performance, solvency and

liquidity;

• the Principal and Emerging Risks disclosures describing these risks and how emerging risks are

identified and explaining how they are being managed and mitigated; and

• the Directors’ explanation in the Viability Statement of how they have assessed the prospects

of the Group, over what period they have done so and why they considered that period to be

appropriate, and their statement as to whether they have a reasonable expectation that the

Group will be able to continue in operation and meet its liabilities as they fall due over the

period of their assessment, including any related disclosures drawing attention to any

necessary qualifications or assumptions.

We are also required to review the Viability Statement set out on page 52 under the UK Listing

Rules.

Our work is limited to assessing these matters in the context of only the knowledge acquired

during our financial statements audit. As we cannot predict all future events or conditions and as

subsequent events may result in outcomes that are inconsistent with judgements that were

reasonable at the time they were made, the absence of anything to report on these statements is

not a guarantee as to the Group’s and Parent Company’s longer-term viability.

Our reporting

We have nothing material to add or draw attention to in relation to these disclosures.

We have concluded that these disclosures are materially consistent with the Financial

Statements and our audit knowledge.

4 Key audit matters

What we mean

Key audit matters are those matters that, in our professional judgement, were of most

significance in the audit of the Financial Statements and include the most significant assessed

risks of material misstatement (whether or not due to fraud) identified by us, including those

which had the greatest effect on:

• the overall audit strategy;

• the allocation of resources in the audit; and

• directing the efforts of the engagement team.

We include below the Key Audit Matters in decreasing order of audit significance together

withourkey audit procedures to address those matters and our results from those procedures.

Thesematters were addressed, and our results are based on procedures undertaken, for the

purpose of our audit of the Financial Statements as a whole. We do not provide a separate

opinionon these matters.

4.1 Recoverability of the indefinite life intangible assets relating to the MJNCGU (Group)

Financial Statement Elements

FY25 FY24

Indefinite life intangible assets (MJN CGU) £4,205m £4,472m

Impairment charge (MJN CGU) Nil £696m

Our assessment of risk vs FY24

The risk of the MJN cash-generating unit (CGU) being impaired has decreased

because its carrying value was reduced by impairment charges in prior years,

anditscurrent year’s trading results are consistent with the forecasts used for

theFY24 impairment testing.



Our results

FY25: Acceptable

FY24: Acceptable

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4 Key audit matters continued

4.1 Recoverability of the indefinite life intangible assets relating to the MJNCGU (Group)

continued

Description of the Key Audit Matter

The risk: forecast-based assessment

The recoverability of indefinite life intangible assets relating to the Mead Johnson Nutrition cash

generating unit (“MJN CGU”) is assessed using value in use which is based on forecast financial

information within a discounted cash flow model (“the Model”).

Key assumptions in the Model include the discount rate and, to a lesser extent, forecast financial

performance, in particular net revenue in North America and gross margin (including the impact

of expected capital expenditure) as well as external factors impacting forecast category

growth.

The MJN CGU’s carrying value remains sensitive to reasonable changes in the discount rate

assumption.

The effect of these matters is that, as part of our risk assessment, we determined that the

recoverable amount of the MJN CGU has a high degree of estimation uncertainty with a

potential range of reasonable outcomes greater than our materiality for the Financial Statements

as a whole, and possibly many times that amount.

Our response to the risk

Our procedures to address the risk included:

Sensitivity analysis: We considered the sensitivity of the recoverable amount of the indefinite

life intangible assets relating to the MJN CGU to reasonably possible changes in assumptions and

focused our attention on those assumptions which we considered the most critical to the

recoverable amount of the MJN CGU.

Benchmarking assumptions: We evaluated the net revenue growth assumptions in the Model

with reference to historic performance and external market data relating to projected growth

for the relevant categories.

We benchmarked margin and other costs assumptions against historical achievement, external

cost inflation growth forecasts and our assessment of the likely impact of expected capital

expenditure.

Personnel interviews: We compared judgements made centrally to discussions we held directly

with the relevant members of MJN management. We considered and challenged the Group’s

assumptions and corroborated these views with the Group’s in-market teams.

Valuation expertise: Using our own valuation specialists, we challenged the appropriateness

ofkey assumptions underlying the estimation of the recoverable amounts of the indefinite life

intangible assets relating to the MJN CGU, including the discount rate used in the Model.

Weassessed whether the premium applied to the discount rate was appropriate considering

theinherent forecasting uncertainty, particularly in relation to expected capital expenditure.

Wealso benchmarked the recoverable amount of the MJN CGU using implied earnings multiples

to comparable companies and historic transactions within the industry.

Assessing transparency: We assessed whether the Group’s disclosures in Note 9 on the sensitivity

of the impairment assessment to reasonable changes in key assumptions appropriately reflected the

risks inherent in the recoverable amount of indefinite life intangible assets relating to the MJN CGU.

We performed the tests above rather than seeking to rely on any of the Group’s controls because

the nature of the balance is such that we would expect to obtain audit evidence primarily through

the detailed procedures described.

Communications with the Reckitt Benckiser Group’s Audit Committee

Our discussions with and reporting to the Audit Committee included:

• Our approach to audit of the impairment assessment of indefinite life intangible assets

relating to the MJN CGU, including details of our planned substantive procedures and the

extent of our control reliance.

• For the recoverable amounts of the MJN CGU, whether and where the Group’s estimate

laywithin our reasonable range.

• The adequacy of the disclosures, particularly as they relate to the sensitivity of the

recoverable amount of the MJN CGU to key assumptions including discount rate, fell within

our acceptable range.

Areas of particular auditor judgement

We identified the following as the areas of particular auditor judgement:

• We identified an area of particular auditor judgement to be the assessment of whether

theDirectors’ overall estimate of the recoverable amount of the MJN CGU, considering

keyassumptions including the discount rate and, to a lesser extent, net revenue in North

America and gross margin fell within our acceptable range.

Our results

We found the Group’s conclusion that there is no impairment of indefinite life intangible asset

balances relating to the MJN CGU to be acceptable. (FY24 result: the Group’s conclusion was

that the goodwill and indefinite life intangible asset balances relating to the MJN CGU and the

related impairment charge of £696m were acceptable).

Further information in the Annual Report and Accounts: See the Audit Committee Report on

page 78 for details on how the Audit Committee considered recoverability of the indefinite life

intangible assets relating to the MJN CGU as an area of significant attention, page 141 for the

accounting policy on recoverability of the indefinite life intangible assets relating to the MJN

CGU, and Note 9 for the financial disclosures.

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4 Key audit matters continued

4.2 Revenue recognition in relation to trade spend arrangements and associated

accruals(Group)

Financial Statement Elements

FY25 FY24

Trade spend accruals £921m £1,074m

Our assessment of risk vs FY24

The risk of inaccurate revenue recognition for trade spend agreements has

continued to reduce. This is because retrospective reviews have shown continued

improved accuracy of the accruals.



Our results

FY25: Acceptable

FY24: Acceptable

Description of the Key Audit Matter

The risk: subjective estimate

The Group regularly enters into complex arrangements providing pricing, placement and other

promotional rebates and allowances to its customers. These trade spend arrangements can vary

in complexity by market, product category and customer.

Revenue is measured net of outflows arising from such arrangements which, for agreements or

practices spanning a period end, requires an estimate of the extent and value of future activity.

These estimates can be subjective and require the use of assumptions that are susceptible to

management bias and fraud.

The Group operates a variable compensation scheme with outturns directly linked to financial

performance against targets. Strong financial performance could create an incentive to defer

revenues into the next financial year by overstating trade spend accruals. Weaker financial

performance may also create an incentive to understate trade spend accruals. There is a risk

that inappropriate judgements in multiple markets may, in aggregate, materially misstate the

Group’s Financial Statements.

The effect of these matters is that, as part of our risk assessment, we determined that there is a

high degree of estimation uncertainty associated with the accuracy of trade spend accruals,

with a potential range of reasonable outcomes greater than our materiality for the Group’s

Financial Statements as a whole.

Our response to the risk

Our procedures to address the risk included:

Accounting policies: We critically assessed the appropriateness of the Group’s accounting

policies relating to trade spend against the requirements of IFRS 15 Revenue from Contracts

with Customers.

Historical comparisons: For a selection of the more judgemental accruals, our component teams

assessed the historical accuracy of the accruals by:

• comparing those recognised in the prior year to the actual trade spend subsequently incurred;

and

• where there were significant differences, considering whether such differences related to a

change in estimate or error, and evaluating whether any overstatement or understatement

identified was material.

Tests of detail: We performed procedures to a precision level sufficient to address the risk of

fraud. For a sample of these trade spend accruals, our component teams:

• Reperformed the calculation to assess whether it was mathematically accurate;

• Identified the key assumptions in the calculation of each accrual selected, such as forecast

sales volumes, rebate structure and settlement mechanism;

• Agreed those key assumption to relevant documentation, such as invoices received after the

balance sheet date, customer agreements or third-party consumption data; and

• Assessed whether the key assumptions were consistent with external data points and the

Group’s historic experience of comparable trade spend arrangements.

Expectation vs outcome: We performed analytical procedures over the aggregated balance at

a group level, and our component teams completed disaggregated analytical procedures over

the individual balances.

Assessing transparency: We assessed the adequacy of the Group’s disclosures in Note 1 in

relation to the degree of estimation in the trade spend accruals and the resulting amount of

trade spend deducted from Net Revenue.

We performed the detailed tests above rather than seeking to rely on any of the Group’s

controls because our knowledge of the design and implementation of these controls and

related IT controls indicated that we would not be able to obtain the required evidence to

support reliance on controls.

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4 Key audit matters continued

4.2 Revenue recognition in relation to trade spend arrangements and associated

accruals(Group) continued

Our response to the risk continued

Communications with the Reckitt Benckiser Group plc’s Audit Committee

Our discussions with and reporting to the Audit Committee included:

• Our approach to the audit of the trade spend accruals including details of our planned

substantive procedures, use of unpredictable procedures and the extent of our control

reliance.

• Our assessment of findings from our component team’s procedures, including the historical

comparisons of FY24 accruals and whether those indicated material errors, and whether

the FY25 accruals in relation to trade spend were acceptable.

Areas of particular auditor judgement

We performed an assessment of whether the Group’s overall estimate, considering the

Group’s accounting policies, and the complex nature of the agreements entered into, is

acceptable. We also considered whether an unadjusted overstatement identified through

ourprocedures directly related to the key audit matter was material.

Our results

We found the trade spend accruals recognised to be acceptable (FY24 result: acceptable).

Further information in the Annual Report and Accounts: See the Audit Committee Report on

page 78 for details on how the Audit Committee considered revenue recognition in relation to

trade spend arrangements and associated accruals as an area of significant attention, page 139

for the accounting policy on revenue recognition in relation to trade spend arrangements and

associated accruals, and Note 1 for the financial disclosures.

4.3 Potential liabilities arising from the US litigation concerning Necrotising Enterocolitis

(NEC) (Group)

Financial Statements disclosure in Note 20

Our assessment of risk vs FY24

We have not identified any significant changes to the level of risk relating to

contingent liabilities arising from the US litigation concerning Necrotising Enterocolitis

compared to FY24.



Our results

FY25: Acceptable

FY24: Acceptable

Description of the Key Audit Matter

The risk: dispute outcome

The Group is named in a number of litigations relating to NEC in the United States.

In FY24, there was one court ruling against the Group and another in their favour. There have

been no additional court rulings in FY25, and both FY24 cases remain under appeal. Due to the

uncertainty of the remaining cases, significant judgement (that could be subject to potential

management bias) is required to determine whether potential economic outflows are both

probable and can be reliably estimated.

Additionally, in FY25 a new putative class action securities fraud lawsuit linked to NEC has been

filed in the United States which is in its early stage of proceedings.

The amounts involved in these litigations are potentially significant, and the application of

accounting standards to determine the amount, if any, to be provided for, is inherently

subjective. Given the uncertainty relating to the likelihood, amount and timing of any possible

economic outflow, there is a risk over the classification of any liability as a provision or a

contingent liability and the transparency of disclosures therein.

Our response to the risk

Our procedures to address the risk included:

Inquiry of legal counsel: We inquired as to the progress through discovery of the remaining

cases in relation to the NEC, as well as the status of the appeals of the two court rulings to date,

and the likely prospects of successfully defending the cases based on available evidence,

including scientific evidence, and therefore the ability to reliably estimate any economic outflow.

Additionally, we performed inquiries to understand the status and the prospects of successfully

defending the class action securities fraud lawsuit linked to NEC based on evidence available

that would allow us to determine whether an outflow is probable and whether any economic

outflow can be reliably estimated.

We requested and received formal correspondence directly from the Group’s external counsel

that evaluated the status of legal proceedings.

We corroborated the consistency of the judgement made by the Directors to inquiries with both

internal and external legal counsel.

Assessing transparency: We assessed the adequacy of the Group’s disclosures of contingent

liabilities related to the NEC litigations in Note 20, particularly the uncertainties relating to the

amount and timing of any resulting outflow.

We performed the test above rather than seeking to rely on any of the Group’s controls because

the nature of the balance is such that we would expect to obtain audit evidence primarily

through the detailed procedures described.

Independent Auditor’s Report continued

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4 Key audit matters continued

4.3 Potential liabilities arising from the US litigation concerning Necrotising Enterocolitis

(NEC) (Group) continued

Our response to the risk continued

Communications with the Reckitt Benckiser Group plc’s Audit Committee

Our discussions with and reporting to the Audit Committee included:

• Our approach to the assessment over the ongoing litigation relating to NEC and the related

putative class action securities fraud lawsuit in the United States;

• Our conclusions on the appropriateness of the Group’s methodology and accounting policies;

and

• The adequacy of the disclosures, particularly as it relates to the uncertainties in relation to the

amount and timing of any resulting outflow.

Areas of particular auditor judgement

We identified an area of particular auditor judgement to be consideration of whether the

contingent liability disclosure is sufficiently transparent in respect of the uncertainties that

exist in relation to the likelihood, amount and timing of any resulting outflows.

Our results

We found the Group’s assessment that the potential outflows from the NEC litigations are

treated as contingent liabilities and the transparency of the related disclosure to be

acceptable (FY24 result: acceptable).

Further information in the Annual Report and Accounts: See the Audit Committee Report on

pages 78-79 for details on how the Audit Committee considered potential liabilities arising from

the NEC litigation in the United States as an area of significant attention, page 144 for the

accounting policy on contingent liabilities arising from the NEC litigation in the United States, and

Note 20 for the financial disclosures.

4.4 Provisions for uncertain tax positions (Group)

Financial Statement Elements

FY25 FY24

Uncertain tax positions £604m £711m

Our assessment of risk vs FY24

We have not identified any significant changes to our assessment of the level of risk

relating to provisions for uncertain tax positions compared to FY24.



Our results

FY25: Acceptable

FY24: Acceptable

Description of the Key Audit Matter

The risk: subjective estimate

Due to the Group operating across a number of different tax jurisdictions, and the complexities

of transfer pricing and other international tax legislation, it is subject to periodic challenge by

local tax authorities on a range of tax matters arising in the normal course of business.

These challenges by the local tax authorities include but are not limited to:

• Transfer pricing arrangements relating to the Group’s operating model;

• Transfer pricing arrangements relating to the ownership of intellectual property rights that are

used across the Group;

• Deductibility of certain expenditure; and

• Permanent establishment risk.

Provisions for uncertain tax positions require judgements and estimates to be made in relation

to tax issues and exposures where the Group may be challenged by local tax authorities on its

interpretation of tax legislation. Auditor judgement is required to assess whether the Directors’

overall estimate falls within an acceptable range. This considers the method and assumptions

underpinning exposures calculated such as: the clarity of relevant legislation and related

guidance; advice from in-house specialists; opinions of professional firms; past experience; and

precedents set by a particular tax authority.

The effect of these matters is that, as part of our risk assessment, we determined that the

estimates of uncertain tax positions, especially those relating to UK, have a high degree of

estimation uncertainty, with a potential range of reasonable outcomes greater than our

materiality for the Group`s Financial Statements as a whole.

Our response to the risk

Our procedures to address the risk included:

Our tax expertise: We used our own international and local tax specialists to assist us to:

• Inspect and assess the Group’s centrally prepared transfer pricing policies to determine

whether they reflect the risks, activities and substance of each of the entities within the supply

chain; and

• Assess the Group’s tax positions, its correspondence with the relevant tax authorities, and to

analyse and challenge the assumptions used to determine provisions for tax uncertainties based

on our knowledge and experiences of the application of tax legislation.

Historical comparisons: We assessed the historical accuracy of the provisions, with reference to any

recent tax authority audits and related results, and we considered the impact on the remaining

provision.

Assessing transparency: We assessed the adequacy of the Group’s disclosures in Notes 1 and 22

in respect of uncertain tax positions.

We performed the tests above rather than seeking to rely on any of the Group’s controls

because the nature of the balance is such that we would expect to obtain audit evidence

primarily through the detailed procedures described.

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4 Key audit matters continued

4.4 Provisions for uncertain tax positions (Group) continued

Our response to the risk continued

Communications with the Reckitt Benckiser Group plc’s Audit Committee

Our discussions with and reporting to the Audit Committee included:

• Our approach to the audit of the provisions for uncertain tax positions, including details of

our planned substantive procedures and the extent of our control reliance;

• For the provisions for uncertain tax positions, whether and where the Group’s estimate lay

within our reasonable range; and

• The adequacy of the disclosures, particularly as it relates to the sensitivity of the uncertain

tax position to possible changes in key assumptions.

Areas of particular auditor judgement

We identified an area of particular auditor judgement to be the clarity of the associated

disclosure in relation to the estimation uncertainty associated with uncertain tax positions.

Our results

We found the level of the uncertain tax provisioning to be acceptable (FY24 result: acceptable).

Further information in the Annual Report and Accounts: See the Audit Committee Report on

page 78 for details on how the Audit Committee considered uncertain tax positions as an area

of significant attention, page 144 for the accounting policy on uncertain tax positions and Note

22 for the financial disclosures.

4.5 Potential liabilities arising from the amendment to the South Korean Humidifier

Sanitiser (HS) Law (Group)

Financial Statements disclosure in Note 20

Our assessment of risk vs FY24

We have not identified any significant changes to the level of risk relating to contingent

liabilities arising from the South Korean Humidifier Sanitiser (HS) Law compared to FY24.



Our results

FY25: Acceptable

FY24: Acceptable

Description of the Key Audit Matter

The risk: dispute outcome

The Group is involved in an ongoing litigation relating to the HS issue in South Korea.

The South Korean HS law amendment enacted on 25 September 2020 significantly altered the

legal framework under which HS claims were previously made and settled. On 24 December

2025, a bill was submitted to further amend the current HS law which is in the process of going

through parliament. The Bill introduces a new damage compensation system and a new

structure under which claims will be made and settled.

As a result of the current law, and proposed amendment, judgement is needed to assess whether there

could be further levy payments imposed under the HS law, which would require a provision.

The amounts involved are potentially significant, and the application of accounting standards to

determine the amount, if any, to be provided for, is inherently subjective. Given the uncertainty

relating to the likelihood, amount and timing of any possible economic outflow, there is a risk

over the classification of any liability as a provision or a contingent liability and the transparency

of disclosures therein.

Our response to the risk

Our procedures to address the risk included:

Inquiry of legal counsel: We inquired of the Group’s internal and external counsel to obtain an

understanding of developments in relation to the HS matter, the progress of litigation and the

likelihood of reaching a broader resolution.

We requested and received formal correspondence directly from the Group’s external counsel

that evaluated the status of legal proceedings.

We corroborated the consistency of the judgement made by the Directors to inquiries with both

internal and external legal counsel.

Assessing transparency: We assessed the adequacy of the Group’s disclosures of contingent

liabilities related to the HS matter in Note 20, particularly the uncertainties relating to the amount

and timing of any resulting outflow.

We performed the test above rather than seeking to rely on any of the Group’s controls because

the nature of the balance is such that we would expect to obtain audit evidence primarily

through the detailed procedures described.

Communications with the Reckitt Benckiser Group plc’s Audit Committee

Our discussions with and reporting to the Audit Committee included:

• Our approach to the assessment over the ongoing litigation relating to the HS issue in South Korea;

• Our conclusions on the appropriateness of the Group’s methodology and accounting policies; and

• The adequacy of the disclosures, particularly as it relates to the uncertainties in relation to

the amount and timing of any resulting outflow.

Areas of particular auditor judgement

We found the Group’s assessment that the impact of the HS law amendment as contingent

liabilities and transparency of disclosure to be acceptable (FY24 result: acceptable).

Further information in the Annual Report and Accounts: See the Audit Committee Report on

pages 78-79 for details on how the Audit Committee considered potential liabilities arising from

the amendment to the South Korean humidifier sanitiser (HS) law as an area of significant

attention, page 144 for the accounting policy on contingent liabilities arising from the

amendment to the South Korean HS law, and Note 20 for the financial disclosures.

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4 Key audit matters continued

4.6 Accounting for the divestment of the Essential Home Business (Group)

Financial Statement Elements

FY25 FY24

Gain on disposal

Investment in associate (Essential Home)

£1,245m

£68m

£nil

Our assessment of risk vs FY24

This is a new risk applicable for FY25.

Our results

FY25: Acceptable

FY24: N/A

Description of the Key Audit Matter

The risk: subjective estimate and judgements

The Group completed the divestment of its Essential Home business on 31 December 2025.

We considered that this constituted a significant unusual transaction on account of the quantum,

one-off nature and complexity of the transaction relative to those executed in the normal

course of business.

We did not consider that the accounting was at significant risk of material misstatement or

subject to significant judgement. However, the complexity of the deal structure, the

identification of accounting issues and the assessment of these required significant auditor

attention, including:

• The valuation of non-cash elements of the proceeds, including the Group’s retained interest in

the Essential Home business and a vendor loan note;

• Whether transaction costs included in the gain on disposal calculation met the criteria for

inclusion;

• The determination of net assets included in the disposal group;

• The tax accounting consequences of the separation of the Essential Home business from

existing Group legal entities, and its disposal;

• The assessment of whether management had significant influence over the divested Essential

Home business, and therefore whether it should classify its investment as an investment in

associate;

• The judgement not to classify this divested business as a discontinued operation; and

• Whether disclosures relating to this transaction were compliant with the requirements of the

relevant accounting standards.

As a result of the volume of individual accounting judgements and estimates, we considered this

to be a key focus area of the current year audit.

Our response to the risk

Our procedures to address the risk included:

Tests of detail: We assessed whether the calculation of the gain on disposal was calculated in

accordance with the relevant accounting standards, and:

• Obtained and read the signed Share Purchase Agreement (“SPA”) and other relevant

agreements in relation to the disposal;

• Agreed that the balances related to the Essential Home business were deconsolidated from

the Group Financial Statements at the date of disposal; and

• Assessed the directors’ policy and judgement applied in determining the transaction costs

included in the calculation of the gain on disposal and agreed a sample of these costs to

supporting documentation.

Challenging judgements: We challenged the Group’s assessment of whether the results of the

Essential Home business should be presented as a discontinued operation based on our

understanding of the Group’s operations.

We also challenged the classification of the Group’s retained interest in the Essential Home

business as an investment in associate based on the terms of the new shareholders’ agreement

and other post-divestment service agreements between Reckitt and the new entity.

Our valuation expertise: Using our own valuation specialist, we

• Challenged the appropriateness of key assumptions underlying the estimation of the fair value

of the vendor loan note and the Group’s retained interest in the Essential Home business;

• Benchmarked the discount rate used to value the vendor loan note, considering the Essential

Home business’ standalone creditworthiness and comparable debt instruments;

• Assessed the appropriateness and integrity of the option pricing model used to value the

retained interest in the Essential Home business; and

• Assessed whether projections of future returns, including the risk-free rate and volatility

assumptions were reasonable in the valuation of the retained interest in the Essential Home

business.

Our tax expertise: We used our own tax specialists to inspect the Group’s tax analysis of the

disposal transactions and the associated preparatory steps, and determine if the proposed tax

treatment is in accordance with applicable tax regulation, and if this is consistent with the tax

accounting.

Assessing transparency: We assessed whether the Group’s disclosures in Note 29 appropriately

disclosed the substance of the transaction and the various elements involved in calculating the gain on

disposal.

We performed the tests above rather than seeking to rely on any of the Group’s controls because

the nature of the transaction is such that we would expect to obtain audit evidence primarily

through the detailed procedures described.

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4 Key audit matters continued

4.6 Accounting for the divestment of the Essential Home Business (Group) continued

Our response to the risk continued

Communications with the Reckitt Benckiser Group plc’s Audit Committee

Our discussions with and reporting to the Audit Committee included:

• Our approach to the audit of the Essential Home divestment including details of our

planned substantive procedures and the extent of our control reliance.

• Our assessment of whether the gain on disposal had been appropriately calculated.

• The adequacy of the disclosures relating to the divestment.

Areas of particular auditor judgement

We identified the following as the areas of particular auditor judgement:

• The valuation of the non-cash consideration included within the transaction proceeds used

to calculate the gain on disposal;

• The assessment as to whether transaction costs included in the gain on disposal

calculation met the criteria for inclusion;

• The assessment of the tax accounting consequences of the separation and disposal of the

Essential Home business;

• The judgment as to whether the results of the Essential Home business should be

presented as a discontinued operation; and

• The assessment of the Group’s influence over the divested business, and the associated

classification of the retained interest.

Our results

We found the Group’s calculation of the gain on disposal of the Essential Home business and the

valuation and classification of the Group’s retained interest in this business to be acceptable.

Further information in the Annual Report and Accounts: See the Audit Committee Report on

page 78 for details on how the Audit Committee considered the divestment of the Essential

Home business as an area of significant attention, Note 1 for the accounting policy on

divestments and Note 11 and 29 for the financial disclosures.

4.7 Recoverability of the parent company’s investment in the subsidiary, Reckitt

Benckiser Limited (Parent Company)

Financial Statements disclosure in Note 2 to the Parent Company Financial Statements

Financial Statement Elements

FY25 FY24

Parent company investment £15,343m £15,248m

Our assessment of risk vs FY24

We have not identified any significant changes to our assessment of the level of risk

relating to recoverability of the Parent Company’s investment compared to FY24



Our results

FY25: Acceptable

FY24: Acceptable

Description of the Key Audit Matter

The risk: low risk, high value

The carrying amount of the Parent Company’s investment in its subsidiary, Reckitt Benckiser

Limited, represents 98.4% (FY24: 97.9%) of the Parent Company’s total assets. Its recoverability is

not at a high risk of significant misstatement or subject to significant judgement. However, due

to its materiality in the context of the Parent Company’s Financial Statements, this is considered

to be the area that had the greatest effect on our overall Parent Company audit.

Our response to the risk

Our procedures to address the risk included:

Comparing valuations: We compared the carrying amount of the investment to the market

capitalisation of the Group as Reckitt Benckiser Limited, either directly or indirectly, owns all

other subsidiaries of the Group.

We performed the test above rather than seeking to rely on any of the Group’s controls because

the nature of the balance is such that we would expect to obtain audit evidence primarily

through the detailed procedure described.

Communications with the Reckitt Benckiser Group plc’s Audit Committee

Our discussions with and reporting to the Audit Committee included:

• Our approach to the assessment of the carrying amount of the Parent Company’s

investment in the subsidiary, including details of our planned substantive procedures and

the extent of our control reliance.

• For the carrying amount, our assessment of whether the conclusion that there is no

impairment of the Parent Company’s investment in the subsidiary is acceptable.

Areas of particular auditor judgement

We identified no areas of particular auditor judgement in relation to this key audit matter.

Our results

We found the Parent Company’s conclusion that there is no impairment of its investment in

the subsidiary to be acceptable (FY24 result: acceptable).

Further information in the Annual Report and Accounts: page 181 for the accounting policy on

recoverability of the parent company’s investment in the subsidiary, Reckitt Benckiser limited

controls and Note 2 to the Parent Company Financial Statements.

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5 Our ability to detect irregularities, and our response

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions

that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud.

Our risk assessment procedures included:

• Consultation with our own forensic professionals to assist us in identifying fraud risks based on their

experience of comparable businesses, similar sectors, as well as of the geographies in which the

Group operates. Our forensic professionals participated in the initial fraud risk assessment discussions

and were consulted throughout the audit when further guidance was deemed necessary;

• Enquiry of the Directors, operational managers, the General Counsel, the Chief Ethics and

Compliance Officer and members of the internal audit function to assess whether they have

knowledge of any actual, suspected or alleged fraud;

• Reading minutes of meetings of the Board, Audit Committee, Compliance Committee, and

Annual General meeting; and

• Inspection of the Group’s policies and procedures to prevent, detect and respond to the risks of

fraud, internal audit reports issued during the year and inspection of reports to the Group’s

whistleblowing hotline and the responses to those reports, including those concerning investigations.

We communicated identified fraud risks throughout the audit team and remained alert to any

indications of fraud throughout the audit. This included communication from the group auditor to

component auditors of relevant fraud risks identified at the group level and requesting component

auditors performing procedures at component level to report to the group auditor any identified

fraud risk factors or identified or suspected instances of fraud that could give rise to a material

misstatement at the Group level.

As required by auditing standards and taking into account possible pressures to meet

performance targets, we perform procedures to address the risk of management override of

controls and the risk of fraudulent revenue recognition. We also performed procedures to

address management bias. In particular:

• The risk that group and component management could make inappropriate accounting entries;

• For trade spend arrangements the risk that accruals may be manipulated to alter the accuracy

of the recognition of revenue and profit;

• The risk of bias when making accounting estimates and judgements, including the assessment

of the outcome of material litigations (contingent liability disclosure).

Further detail on our procedures is set out in the Key Audit Matter disclosures in section 4 of this report.

For all components within scope, we identified journal entries to test based on risk criteria and

compared the identified entries to supporting documentation. These included unusual journal

entries associated with trade spend accruals.

Laws and regulations - Identifying and responding to risks of material misstatement

relating to compliance with laws and regulations

Laws and regulations risk assessment

We identified areas of laws and regulations that could reasonably be expected to have a

material effect on the Financial Statements from our general commercial and sector experience,

through discussion with the Directors and other management (as required by auditing standards)

and inspected regulatory and legal correspondence received by the Group. We held enquiries

with the Group’s external legal counsel where considered necessary, and we also inspected the

policies and procedures regarding compliance with laws and regulations.

As the Group is regulated, our assessment of risks involved gaining an understanding of the control

environment including the entity’s procedures for complying with regulatory requirements.

Risk communications

We communicated identified laws and regulations throughout our team and remained alert to any

indications of non-compliance throughout the audit. This included communication from the group

auditor to all component auditors of relevant laws and regulations identified at the group level, and a

request for component auditors to report to the Group auditor any instances of non-compliance

with laws and regulations that could give rise to a material misstatement at the group level.

Direct laws context and link to audit

The potential effect of these laws and regulations on the Financial Statements varies considerably.

Firstly, Group is subject to laws and regulations that directly impact the Financial Statements

including financial reporting legislation (including related companies legislation), distributable profits

legislation, and taxation legislation (direct and indirect) and we assessed the extent of compliance

with these laws and regulations as part of our procedures on the related Financial Statements items.

Most significant indirect law/ regulation areas

Secondly, the Group is subject to many other laws and regulations where the consequences of

non-compliance could have a material effect on amounts or disclosures in the Financial Statements,

for instance through the imposition of fines or litigation or the loss of the Group’s permission to

operate in countries where the non-adherence to laws could prevent trading in such countries.

We identified the following areas as those most likely to have such an effect:

• Employee health and safety, reflecting the nature of the Group’s production and distribution process;

• Anti-bribery and corruption, reflecting that the Group operates in a number of countries

where there is an opportunity to engage in bribery given more limited regulation;

• Interaction with healthcare professionals, reflecting the nature of the Group’s products in the

Self Care product category and Nutrition operating segment;

• Global competition laws, reflecting the nature of the Group’s business and certain market

share positions;

• Consumer product law such as product safety, quality standards and product claims,

reflecting the nature of the Group’s diverse product base;

• Data privacy laws, reflecting the Group’s growing amounts of personal data held;

• Intellectual property legislation, reflecting the potential of the Group to infringe trademarks,

• Environmental regulation, reflecting the nature of the Group’s production and distribution process.

Auditing standards limit the required audit procedures to identify non-compliance with these laws

and regulations to enquiry of the Directors and other management and inspection of regulatory

and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed

to us or evident from relevant correspondence, an audit will not detect that breach.

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5 Our ability to detect irregularities, and our response continued

Laws and regulations - Identifying and responding to risks of material misstatement

relating to compliance with laws and regulations continued

Link to KAMs

Further detail in respect of the effect of ongoing litigations relating to NEC in the United States

and the HS Law Amendment in South Korea is set out in the Key Audit Matter disclosures

insection4 of this report.

Actual or suspected breaches discussed with audit committee

We discussed with the Audit Committee other matters related to actual or suspected breaches

of laws or regulations, for which disclosure is not necessary, and considered any implications for

our audit.

Context

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have

detected some material misstatements in the Financial Statements, even though we have

properly planned and performed our audit in accordance with auditing standards. For example,

the further removed non-compliance with laws and regulations is from the events and

transactions reflected in the Financial Statements, the less likely the inherently limited

procedures required by auditing standards would identify it. In addition, as with any audit, there

remained a higher risk of non-detection of fraud, as fraud may involve collusion, forgery,

intentional omissions, misrepresentations, or the override of internal controls. Our audit

procedures are designed to detect material misstatement. We are not responsible for

preventing non-compliance or fraud andcannot be expected to detect non-compliance with all

laws and regulations.

6 Our determination of materiality

The scope of our audit was influenced by our application of materiality. We set quantitative

thresholds and overlay qualitative considerations to help us determine the scope of our

auditand the nature, timing and extent of our procedures, and in evaluating the effect of

misstatements, both individually and in the aggregate, on the Financial Statements as a whole.

£140m (FY24: £140m)

Materiality for the group financial statements as a whole

What we mean

A quantitative reference for the purpose of planning and performing our audit.

Basis for determining materiality and judgements applied

Materiality for the Group Financial Statements as a whole was set at £140m (FY24: £140m). This

was determined with reference to a benchmark of Group normalised profit before tax from

continuing operations (‘PBTCO’).

Consistent with FY24, we determined that Group normalised PBTCO remains the main

benchmark for the Group. We normalised by adding back adjustments that do not represent the

normal, continuing operations of the Group. The items we adjusted for were the impairment of

Biofreeze and other intangible assets, the impact of one-off costs relating to the restructuring

programme and the gain on disposal of Essential Home as disclosed on page 208 in the table

reconciling the Group’s IFRS measures to its adjusted measures for the year ended 31 December

2025, totalling £800 million net credit (FY24: £1,019 million, net charge). As such, we based our

Group materiality on Group normalised PBTCO of £3,038m (FY24: £3,123m).

Our Group materiality of £140m was determined by applying a percentage to the Group

normalised PBTCO. When using a benchmark of Group normalised PBTCO to determine overall

materiality, KPMG’s approach for listed entities considers a guideline range of 3 – 5% of the

measure. In setting overall Group materiality, we applied a percentage of 4.6% (FY24: 4.5%) to the

benchmark.

Materiality for the Parent Company Financial Statements as a whole was set at £70m (FY24:

£70m), determined with reference to a benchmark of Parent Company total assets, of which it

represents 0.45% (FY24: 0.45%).

£91m (FY24: £91m)

Performance materiality

What we mean

Our procedures on individual account balances and disclosures were performed to a lower

threshold, performance materiality, so as to reduce to an acceptable level the risk that

individually immaterial misstatements in individual account balances add up to a material amount

across the Financial Statements as a whole.

Basis for determining performance materiality and judgements applied

We have considered performance materiality at a level of 65% (FY24: 65%) of materiality for

Reckitt Benckiser Group plc’s Financial Statements as a whole to be appropriate. We applied this

percentage in our determination of performance materiality based on our understanding of the

control environment.

The Parent Company performance materiality was set at £52.5m (FY24: £52.5m), which equates

to 75% (FY24: 75%) of materiality for the Parent Company Financial Statements as a whole.

We applied this percentage in our determination of performance materiality because we did not

identify any factors indicating an elevated level of risk.

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6 Our determination of materiality continued

£6m (FY24: £6m)

Audit misstatement posting threshold

What we mean

This is the amount below which identified misstatements are considered to be clearly trivial

from a quantitative point of view. We may become aware of misstatements below this threshold

which could alter the nature, timing and scope of our audit procedures, for example if we

identify smaller misstatements which are indicators of fraud.

This is also the amount above which all misstatements identified are communicated to Reckitt

Benckiser Group plc’s Audit Committee.

Basis for determining the audit misstatement posting threshold and judgements applied

We set our audit misstatement posting threshold at 4.3% (FY24: 4.3%) of our materiality for the

Group Financial Statements. We also report to the Audit Committee any other identified

misstatements that warrant reporting on qualitative grounds.

The overall materiality for the Group Financial Statements of £140m (FY24: £140m) compares as

follows to the main financial statement caption amounts:

Total Group Revenue Group profit before tax Total Group Assets

FY25 FY24 FY25 FY24 FY25 FY24

Financial statement

Caption £14,205m £14,169m £3,838m £2,104m £25,068m £25,298m

Group Materiality as %

of caption 1.0% 1.0% 3.6% 6.7% 0.6% 0.5%

7 The scope of our audit

Group scope

What we mean

How the Group auditor determined the procedures to be performed across the Group.

We performed risk assessment procedures to determine which of the Group’s components are

likely to include risks of material misstatement to the Group Financial Statements and which

procedures to perform at these components to address those risks.

In total, we identified 53 (FY24: 52) components based on our evaluation of the Group’s

operational structure, the Group’s legal structure, the existence of common risk profiles across

entities, the presence of key audit matters and other audit specific factors, and our ability to

perform audit procedures centrally.

We identified quantitatively significant components which contained the largest percentages of

either total revenue or total assets of the Group, for which we performed audit procedures.

Additionally, having considered qualitative and quantitative factors, we selected additional

components with accounts and disclosures contributing to the specific RMMs of the Group

Financial Statements.

The below summarises where we performed audit procedures:

Component type

Number of components

where we performed audit

procedures Range of materiality applied

Quantitatively significant components 1 £52m

Other components where we performed

further audit procedures 52 £9m - £70m

Total 53

We involved component auditors in performing the audit work on 45 components. We

performed audit procedures on the items excluded from the normalised Group profit before tax

used as the benchmark for our materiality. We set the component materialities having regard to

the mix of size and risk profile of the components across the Group. We also performed the

audit of the Parent Company.

Of the 53 in-scope components, 8 components were part of the Essential Home divestment

and are not included in the closing balance sheet as of 31 December 2025.

Our audit procedures covered 81% (FY24: 81%) of Group net revenue. We performed audit

procedures in relation to components that accounted for 86% (FY24: 76%) of Group profit before

tax and 82% (FY24: 84%) of Group total assets.

For the remaining components for which we performed no audit procedures, no component

represented more than 0.9% of Group total revenue, Group profit before tax or Group total

assets. We performed analysis at an aggregated Group level to re-examine our assessment that

there is not a reasonable possibility of a material misstatement in these components.

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7 The scope of our audit continued

Group scope continued

Impact of controls on our group audit

During the audit we identified three global Enterprise Resource Planning (‘ERP’) finance IT systems

that were relevant to our audit which are used by all the components in the Group and are all

managed centrally from the UK, noting that during the year, one of these systems was fully

replaced by a newer ERP. We used our IT auditors to assist us in assessing the design and

operating effectiveness of the general IT controls of two of these global IT systems, covering the

majority of components in scope (by number). For these systems, having performed additional

procedures to respond to deficiencies identified, we were able to adopt a partial IT controls

reliance approach. We also tested the design and operating effectiveness of IT general controls

ofrelated IT systems, infrastructure layers and utility tools, including an IT system which covers

manual journals. However, given the decentralised nature of the Group’s overall control

environment and the limited number of automated controls in key transactional areas,

thishadalimited impact on our audit approach.

We did not seek to rely on general IT controls on the other identified IT systems owing to

ourknowledge of the control environment and the limited number of components which

usethese systems.

The Group has a decentralised control environment and is undertaking a controls transformation

program, (as noted on page 80 of the Audit Committee report) which includes the refinement of

the Group’s control framework and moving of the operations of certain controls toshared service

centres. As a result of this and considering the most efficient and effective approach for gaining

the appropriate audit evidence, we did not seek to rely on manual transactional controls. We took

a predominantly substantive approach in all areas of the audit andaccordingly increased the

extent of our substantive procedures.

Group auditor oversight

What we mean

The extent of the Group auditor’s involvement in work performed by component auditors.

As part of establishing the overall group audit strategy and plan, we conducted the risk

assessment and planning discussion meeting with component auditors to discuss group audit

risk relevant to the components, including the key audit matter in respect of revenue recognition

in relation to trade spend arrangements and associated accruals.

We physically visited component auditors in 8 countries between September and December

2025 to attend management balance sheet reviews ahead of the year end (FY24: 22) and/or

attend meetings with the local component auditor and local management. We also attended 16

(FY24: 3) country meetings virtually.

We had regular two-way contact with our component auditors throughout the year, including

issuing instructions to them on the scope of their work, risk assessment challenge and clearance

meetings at the planning, interim and final phases of the audit.

We also inspected the work performed by the component auditors for the purpose of the group

audit and evaluated the appropriateness of conclusions drawn from the audit evidence obtained

and consistencies between communicated findings and work performed, with a particular focus

on revenue, trade spend accruals, cash and journals.

8 Other information in the annual report

The Directors are responsible for the other information presented in the Annual Report together

with the Financial Statements. Our opinion on the Financial Statements does not cover the other

information and, accordingly, we do not express an audit opinion or, except as explicitly stated

below, any form of assurance conclusion thereon.

All other information

Our responsibility

Our responsibility is to read the other information and, in doing so, consider whether, based on

our Financial Statements audit work, the information therein is materially misstated or

inconsistent with the Financial Statements or our audit knowledge.

Our reporting

Based solely on that work we have not identified material misstatements or inconsistencies in

the other information.

Strategic report and directors’ report

Our responsibility and reporting

Based solely on our work on the other information described above we report to you as follows:

• We have not identified material misstatements in the strategic report and the Directors’ report;

• In our opinion the information given in those reports for the financial year is consistent with

the Financial Statements; and

• In our opinion those reports have been prepared in accordance with the Companies Act 2006.

Directors’ remuneration report

Our responsibility

We are required to form an opinion as to whether the part of the Directors’ Remuneration

Report to be audited has been properly prepared in accordance with the Companies Act 2006.

Our reporting

In our opinion the part of the Directors’ Remuneration Report to be audited has been properly

prepared in accordance with the Companies Act 2006.

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8 Other information in the annual report continued

Corporate governance disclosures

Our responsibility

We are required to perform procedures to identify whether there is a material inconsistency

between the Financial Statements and our audit knowledge, and:

• The Directors’ statement that they consider that the annual report and Financial Statements

taken as a whole is fair, balanced and understandable, and provides the information necessary

for shareholders to assess the Group’s position and performance, business model and

strategy;

• The section of the annual report describing the work of the Audit Committee, including the

significant issues that the Audit Committee considered in relation to the Financial Statements,

and how these issues were addressed; and

• The section of the annual report that describes the review of the effectiveness of the Group’s

risk management and internal control systems.

Our reporting

Based on those procedures, we have concluded that each of these disclosures is materially

consistent with the Financial Statements and our audit knowledge.

We are also required to review the part of the Corporate Governance Statement relating to the

Group’s compliance with the provisions of the UK Corporate Governance Code specified by the

UK Listing Rules for our review.

We have nothing to report in this respect.

Other matters on which we are required to report by exception

Our responsibility

Under the Companies Act 2006, we are required to report to you if, in our opinion:

• Adequate accounting records have not been kept by the Parent Company, or returns

adequate for our audit have not been received from branches not visited by us; or

• The Parent Company Financial Statements and the part of the Directors’ Remuneration Report

to be audited are not in agreement with the accounting records and returns; or

• Certain disclosures of Directors’ remuneration specified by law are not made; or

• We have not received all the information and explanations we require for our audit.

Our reporting

We have nothing to report in these respects.

9 Respective responsibilities

Directors’ responsibilities

As explained more fully in their statement set out on page 116, the Directors are responsible for:

the preparation of the Financial Statements including being satisfied that they give a true and

fair view; such internal control as they determine is necessary to enable the preparation of

Financial Statements that are free from material misstatement, whether due to fraud or error;

assessing the Group and Parent Company’s ability to continue as a going concern, disclosing, as

applicable, matters related to going concern; and using the going concern basis of accounting

unless they either intend to liquidate the Group or the Parent Company or to cease operations,

or have no realistic alternative but to do so.

Auditor’s responsibilities

Our objectives are to obtain reasonable assurance about whether the Financial Statements as a

whole are free from material misstatement, whether due to fraud or error, and to issue our

opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not

guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material

misstatement when it exists. Misstatements can arise from fraud or error and are considered

material if, individually or in aggregate, they could reasonably be expected to influence the

economic decisions of users taken on the basis of the Financial Statements.

A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/

auditorsresponsibilities.

The Company is required to include these Financial Statements in an annual financial report

prepared under Disclosure Guidance and Transparency Rule 4.1.17R and 4.1.18R. This auditor’s

report provides no assurance over whether the Annual Financial Report has been prepared in

accordance with those requirements.

10 The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3

of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might

state to the Company’s members those matters we are required to state to them in an auditor’s

report and for no other purpose. To the fullest extent permitted by law, we do not accept or

assume responsibility to anyone other than the Company and the Company’s members, as a

body, for our audit work, for this report, or for the opinions we have formed.

Zulfikar Walji (Senior Statutory Auditor)

for and on behalf of KPMG LLP, Statutory Auditor

Chartered Accountants

15 Canada Square

London

4 March 2026

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Group Income Statement

For the year ended 31 December 2025

		2025	2024
	Note	£m	£m
Continuing operations
Net Revenue	2	14, 205	1 4 ,1 6 9
Cost of sales		(5 , 571)	(5 , 574)
Gross profit		8,634	8 , 59 5
Gain on disposal	29	1,245	–
Impairment of intangible assets		(2 5 6)	(839)
Other operating expenses		(5,406)	(5,33 1)
Net operating expenses	3	(4 , 4 1 7)	(6 , 1 7 0)
Operating profit	2	4,2 17	2 ,425
Finance income	6	51	81
Finance expense	6	(430)	(4 0 2)
Profit before income tax		3,838	2 ,1 0 4
Income tax charge	7	(6 3 5)	(67 2)
Net profit from continuing operations		3,203	1, 432
Net loss from discontinued operations		(1 6)	(4)
Net profit		3 ,1 8 7	1, 428
Attributable to non-controlling interests		5	2
Attributable to owners of the Parent Company		3,1 8 2	1, 426
Net profit		3 ,1 8 7	1, 428
Basic earnings/(loss) per ordinary share
From continuing operations (pence)	8	470 .7	20 4.2
From discontinued operations (pence)	8	(2 . 4)	(0 . 6)
From total operations (pence)	8	468. 3	203 .6
Diluted earnings/(loss) per ordinary share
From continuing operations (pence)	8	4 6 9. 5	203.8
From discontinued operations (pence)	8	(2 . 3)	(0 . 6)
From total operations (pence)	8	4 67. 2	2 03. 2

		2025	2024
	Note	£m	£m
Net profit		3 ,1 8 7	1 , 428
Other comprehensive income/(expense)
Items that have or may be reclassified to the Income
Statement in subsequent years
Net exchange loss on foreign currency translation, netof tax	7, 26	(13 0)	(4 4 2)
Reclassification of foreign currency translation
reserveson disposal or liquidation of foreign operations, net of tax	7, 26	(1 3 6)	(11)
(Losses)/gains on net investment hedges, net of tax	7, 26	(79)	85
Fair value gains on cash flow hedges, net of tax	7, 26	9	9
Reclassification of cash flow hedges to the Income
Statement	7, 26	(28)	29
		(3 6 4)	(33 0)
Items that will not be reclassified to the Income
Statement in subsequent years
Remeasurements of defined benefit pension plans, netof tax	7	11	(13)
Revaluation of equity instruments – FVOCI, net of tax	7	(1 9)	(28)
		(8)	(4 1)
Other comprehensive expense, net of tax		(372)	(37 1)
Total comprehensive income		2,815	1, 0 57
Attributable to non-controlling interests		3	2
Attributable to owners of the Parent Company		2,812	1,0 55
Total comprehensive income		2,815	1, 0 57
Total comprehensive income attributable to owners
of the Parent Company arising from:
Continuing operations		2,82 8	1 , 0 59
Discontinued operations		(1 6)	(4)
		2,8 12	1, 055

Group Statement of Comprehensive Income

For the year ended 31 December 2025

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Strategic report Governance Financial statements Other information

		2025	2024
	Note	£m	£m
Assets
Non-current assets
Goodwill and other intangible assets	9	15, 811	17, 5 6 5
Property, plant and equipment	10	2,508	2,385
Equity instruments	11	162	1 0 8
Deferred tax assets	12	2 87	243
Retirement benefit surplus	23	284	269
Other non-current receivables	14	381	130
Total non-current assets		19, 4 3 3	2 0 ,70 0
Current assets
Inventories	13	1 , 47 3	1 , 517
Trade and other receivables	14	2 ,1 2 4	2, 0 9 1
Derivative financial instruments	15, 17	24	61
Current tax recoverable		58	45
Cash and cash equivalents	16	1 ,9 5 2	880
Assets held for sale		4	4
Total current assets		5,635	4 , 59 8
Total assets		25,0 68	2 5, 298
Liabilities
Current liabilities
Short-term borrowings	17	(81 0)	(1 , 4 2 3)
Provisions for liabilities and charges	18	(9 0)	(1 12)
Trade and other payables	21	(5 ,072)	(5, 291)
Derivative financial instruments	15, 17	(51)	(38)
Share repurchase liability	24	(1 01)	(47 7)
Current tax liabilities	22	(5 2 6)	(6 0 2)
Total current liabilities		(6,650)	(7, 9 4 3)

		2025	2024
	Note	£m	£m
Non-current liabilities
Long-term borrowings	17	(7 ,620)	(7 ,235)
Deferred tax liabilities	12	(2 , 56 5)	(2, 8 49)
Retirement benefit obligations	23	(217)	(23 5)
Provisions for liabilities and charges	18	(55)	(6 2)
Derivative financial instruments	15, 17	(95)	(173)
Other non-current liabilities	21	(85)	(8 1)
Total non-current liabilities		(10,637)	(10, 635)
Total liabilities		(17,287)	(18 , 578)
Net assets		7,7 8 1	6 ,7 2 0
Equity
Capital and reserves
Share capital	24	70	74
Share premium		254	254
Capital redemption reserve	24	4	–
Merger reserve		(14 , 22 9)	(1 4 , 22 9)
Other reserves	26	(1 ,75 2)	(1 , 39 0)
Retained earnings		23, 399	2 1 ,9 9 0
Attributable to owners of the parent company		7, 7 4 6	6, 69 9
Attributable to non-controlling interests		35	21
Total equity		7,7 8 1	6 ,7 2 0

The accompanying notes form part of these Financial Statements. The Financial Statements

on pages 133 to 177 were approved by the Board of Directors and signed on its behalf on

4 March 2026 by:

Sir Jeremy Darroch Kris Licht

Director Director

Reckitt Benckiser Group plc Reckitt Benckiser Group plc

Group Balance Sheet

As at 31 December 2025

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135

Strategic report Governance Financial statements Other information

								Total
								attributable
				Capital				to owners of	Non-
		Share	Share	redemption	Merger	Other	Retained	the Parent	controlling	Total
		capital	premium	reserve	reserves 1	reserves 2	earnings	Company	interests	equity
	Note	£m	£m	£m	£m	£m	£m	£m	£m	£m
Balance at 1 January 2024		74	254	–	(1 4 , 22 9)	(1,060)	23,409	8,44 8	21	8,4 69
Comprehensive income
Net profit		–	–	–	–	–	1 , 426	1, 4 26	2	1 , 428
Other comprehensive income/(expense)		–	–	–	–	(33 0)	(4 1)	(37 1)	–	(37 1)
Total comprehensive income/(expense)		–	–	–	–	(3 3 0)	1, 385	1 ,05 5	2	1, 0 57
Transactions with owners
Treasury shares reissued	24	–	–	–	–	–	3	3	–	3
Purchase of ordinary shares by employee share ownership trust		–	–	–	–	–	(2)	(2)	–	(2)
Repurchase of ordinary shares	24	–	–	–	–	–	(1, 50 9)	(1 , 50 9)	–	(1, 50 9)
Share-based payments	25	–	–	–	–	–	85	85	–	85
Cash dividends	28	–	–	–	–	–	(1, 381)	(1, 381)	(2)	(1 , 38 3)
Total transactions with owners		–	–	–	–	–	(2,804)	(2, 804)	(2)	(2,806)
Balance at 31 December 2024		74	254	–	(1 4 , 229)	(1 , 3 9 0)	2 1 ,9 9 0	6,699	21	6,7 2 0
Comprehensive income
Net profit		–	–	–	–	–	3, 182	3, 182	5	3,18 7
Other comprehensive income/(expense)		–	–	–	–	(362)	(8)	(370)	(2)	(372)
Total comprehensive income/(expense)		–	–	–	–	(3 6 2)	3 ,1 74	2,8 12	3	2,81 5
Transactions with owners
Treasury shares reissued	24	–	–	–	–	–	43	43	–	43
Purchase of ordinary shares by employee share ownership trust		–	–	–	–	–	(3)	(3)	–	(3)
Repurchase of ordinary shares	24	–	–	–	–	–	(50 3)	(5 0 3)	–	(50 3)
Cancellation of Treasury shares	24	(4)	–	4	–	–	–	–	–	–
Share-based payments	25	–	–	–	–	–	1 01	101	–	101
Cash dividends	28	–	–	–	–	–	(1,403)	(1,40 3)	(6)	(1,409)
Non-cash capital contribution by non-controlling interest		–	–	–	–	–	–	–	17	17
Total transactions with owners		(4)	–	4	–	–	(1 , 76 5)	(1 , 76 5)	11	(1 ,7 5 4)
Balance at 31 December 2025		70	254	4	(14 , 22 9)	(1 ,7 5 2)	2 3, 39 9	7, 7 4 6	3 5	7, 78 1

1 The merger reserve relates to the 1999 combination of Reckitt & Colman plc and Benckiser N.V. and a Group reconstruction in 2007 treated as a merger under Part 27 of the Companies Act 2006

2 Refer to Note 26 for an explanation of other reserves

Group Statement of Changes in Equity

For the year ended 31 December 2025

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Strategic report Governance Financial statements Other information

		2025	2024
	Note	£m	£m
Cash flows from operating activities
Profit before tax		3, 8 3 8	2 ,1 0 4
Net finance expense	6	379	32 1
Operating profit from continuing operations		4, 2 17	2, 425
(Gain)/loss on disposal/deconsolidation of subsidiary
undertakings	29	(1, 2 45)	–
Loss/(gain) on sale of property, plant and equipment
and intangible assets		–	3
Depreciation, amortisation and impairment	9, 10	75 6	1, 308
Share-based payments	25	101	85
(Increase)/decrease in inventories		(1 9 6)	61
Increase in trade and other receivables		(1 4 4)	(13 3)
Increase/(decrease) in payables and provisions		12	(74)
Cash generated from continuing operations		3,501	3, 675
Interest paid		(3 4 4)	(3 50)
Interest received		41	58
Tax paid		(897)	(70 0)
Net cash flows attributable to discontinued operations	30	(4)	(1)
Net cash generated from operating activities		2, 297	2, 6 82
Cash flows from investing activities
Purchase of property, plant and equipment		(5 3 6)	(370)
Purchase of intangible assets	9	(79)	(95)
Proceeds from the sale of property, plant and equipment		23	14
Proceeds from the sale of intangible assets and related
businesses, net of cash disposed	29	1 ,78 6	57
Other investing activities		1	(2)
Net cash generated from/(used in) investing
activities		1 ,1 9 5	(396)

		2025	2024
	Note	£m	£m
Cash flows from financing activities
Treasury shares reissued	24	43	3
Purchase of ordinary shares by employee share
ownership trust		(3)	(3)
Repurchase of ordinary shares	24	(879)	(1 , 328)
Proceeds from borrowings	17	1, 41 2	1 , 76 8
Repayment of borrowings	17	(1,637)	(1 , 6 87)
Dividends paid to owners of the Parent Company	28	(1,40 3)	(1 ,381)
Dividends paid to non-controlling interests		(6)	(2)
Acquisition of non-controlling interest		–	(3 8)
Other financing activities 1		40	(47)
Net cash used in financing activities		(2, 4 33)	(2 ,7 1 5)
Net increase/(decrease) in cash and cash equivalents		1, 059	(4 2 9)
Cash and cash equivalents at beginning of the year		8 79	1, 380
Exchange gains/(losses)		14	(72)
Cash and cash equivalents at end of the year		1 ,9 5 2	87 9
Cash and cash equivalents comprise:
Cash and cash equivalents per the Balance Sheet 2	16	1 ,9 5 2	880
Overdrafts	17	–	(1)
		1 ,9 5 2	879

1 Cash flows from other financing activities are principally composed of cash receipts and payments on derivative contracts

used to hedge foreign exchange gains or losses on non-sterling financing assets and financing liabilities between the

Group’s Treasury company and fellow Group subsidiaries

2 Included within cash and cash equivalents is £1 82 million of cash (2024: £1 20 million) which is restricted for use by the Group

but is available on demand and freely available for use within the relevant subsidiary (see Note 16)

Group Cash Flow Statement

For the year ended 31 December 2025

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137

Strategic report Governance Financial statements Other information

1 Accounting Policies

The principal accounting policies adopted in the preparation of these consolidated Financial

Statements are set out below. Unless otherwise stated, these policies have been consistently

applied to all the years presented.

Basis of preparation

These consolidated Financial Statements have been prepared in accordance with the

recognition, measurement and presentation requirements of UK-adopted International

Accounting Standards and in accordance with International Financial Reporting Standards

(IFRS Accounting Standards) as issued by the International Accounting Standards Board (IASB).

These consolidated Financial Statements have been prepared under the historical cost

convention, as modified by the revaluation of certain financial assets and liabilities (including

derivative instruments) at fair value through profit or loss or other comprehensive income. A

summary of the Group’s accounting policies is set out below. Historical cost is generally based

on the fair value of the consideration given in exchange for goods and services.

The preparation of Financial Statements that conform to IFRS requires management to make

estimates and assumptions that affect the reported amounts of assets and liabilities at the

Balance Sheet date and revenue and expenses during the reporting period. Although these

estimates are based on management’s best knowledge at the time, actual amounts may

ultimately differ from those estimates.

New standards, amendments and interpretations

The following accounting standard amendments were adopted by the Group on 1 January 2025.

They have not had a significant impact on the consolidated Financial Statements.

• Lack of exchangeability (Amendments to IAS 21)

Certain changes to IFRS will be applicable to the Group financial statements in future years,

but are not expected to have a material effect on the reported net revenue, profit or equity in

the financial statements.

IFRS 18 Presentation and Disclosure in Financial Statements is expected to change certain

aspects of the Group’s reporting of the income statement, balance sheet and cash flow

statement and certain notes of the accounts, and will be implemented with effect from

1 January 2027, with retrospective application. The new standard will introduce additional

defined subtotals with the income statement and “management-defined performance

measures” requiring disclosure, explanation and reconciliation with the financial statements.

The Group’s evaluation of the effect of adopting IFRS 18 is ongoing.

Going concern

Having assessed the principal risks faced by the Group and other matters considered in the

Board’s Viability Review, the Directors deemed it appropriate to adopt the going concern basis

of accounting in preparing the consolidated Financial Statements. In reaching this conclusion, the

Directors took into account the Group’s overall financial position, exposure to principal risks and

future business forecasts.

At 31 December 2025, the Group had cash and cash equivalents (excluding restricted cash) of

£1.8 billion. The Group also had access to undrawn committed borrowing facilities of £4.4 billion,

all of which expire after more than two years. After the return of £1.6 billion to shareholders via

special dividend in February 2026 following the sale of Essential Home in December 2025, the

Directors are of the view that the Group can reasonably be expected to continue in operation

and meet its obligations for at least 12 months from the date of the approval of the Annual

Report and Accounts. Further detail is contained within the Viability Statement on page 52 and

within the liquidity disclosures in Note 15.

Basis of consolidation

The consolidated Financial Statements include the results of Reckitt Benckiser Group plc,

a company registered in the UK, and all its subsidiary undertakings made up to the same

accounting date. Subsidiary undertakings are those entities controlled by Reckitt Benckiser

Group plc . Control exists where the Group is exposed to, or has the rights to variable returns

from its involvement with, the investee and has the ability to use its power over the investee

to affect its returns.

Intercompany transactions, balances and unrealised gains on transactions between Group

companies have been eliminated on consolidation. Unrealised losses have also been eliminated

to the extent that they do not represent an impairment of a transferred asset. The accounting

policies of subsidiaries have been changed where necessary to ensure consistency with

accounting policies adopted by the Group.

Climate Change

In preparing the Consolidated Financial Statements, management has considered the impact of

climate change, specifically with reference to the disclosures included in the Strategic Report

and the Group’s 2030 Sustainability Ambitions, particularly in relation to impairment testing of

intangible assets. These factors have not had a significant effect on the Group’s critical

accounting estimates and judgements made with respect to the current year.

Foreign currency translation

Items included in the Financial Statements of each of the Group’s entities are measured using

the currency of the primary economic environment in which the entity operates (the functional

currency). The consolidated Financial Statements are presented in sterling, which is the Group’s

presentational currency.

Foreign currency transactions are translated into the functional currency using exchange rates

prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the

settlement of foreign currency transactions and from the translation of foreign currency

denominated monetary assets and liabilities are recognised in the Income Statement, except

where hedge accounting is applied.

Notes to the Financial Statements

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Strategic report Governance Financial statements Other information

1 Accounting Policies continued

Foreign currency translation continued

The Financial Statements of subsidiary undertakings with a non-sterling functional currency are

translated into sterling on the following basis:

• Assets and liabilities: at the rate of exchange ruling at the year-end date

• Income Statement items: at the average rate of exchange for the year

Exchange differences arising from the translation of the net investment in subsidiary

undertakings with a non-sterling functional currency, and of borrowings and other currency

instruments designated as hedges of such investments, are recorded in equity on consolidation.

Business combinations

The acquisition method is used to account for the acquisition of subsidiaries and businesses.

Identifiable net assets acquired (including intangible assets) in a business combination are

measured initially at their fair values at the acquisition date.

Where the measurement of the fair value of identifiable net assets acquired is incomplete at the

end of the reporting period in which the combination occurs, the Group will report provisional

fair values. Final fair values are determined within a year of the acquisition date and

retrospectively applied.

The excess of the consideration transferred and the amount of any non-controlling interest over

the fair value of the identifiable assets (including intangibles), liabilities and contingent liabilities

acquired is recorded as goodwill.

The consideration transferred is measured at the fair value of the assets given, equity

instruments issued (if any), and liabilities assumed or incurred at the date of acquisition.

Acquisition-related costs are expensed as incurred.

The results of the subsidiaries and businesses acquired are included in the consolidated

Financial Statements from the acquisition date.

Assets held for sale and disposal groups

Non-current assets, or disposal groups comprising assets and liabilities, are classified as held

for sale and presented separately in the Balance Sheet when the following criteria are met: the

Group is committed to selling the asset or disposal group; it is available for immediate sale in its

current condition; an active plan of sale has commenced and been approved in line with Group

policy; and in the judgement of Group management it is highly probable that the sale will be

completed within 12 months.

Immediately before the initial classification of the assets and disposal groups as held for sale,

the carrying amounts of the assets (or all the assets and liabilities in the disposal groups) are

measured in accordance with the applicable accounting standards. Goodwill (including cost

and accumulated impairment) is allocated to the disposal group using a relative value approach,

unless a different method better reflects goodwill associated with the disposal.

Assets held for sale and disposal groups are subsequently measured at the lower of their

carrying amount and fair value less costs of disposal. Impairment losses on initial classification

as held for sale, and subsequent gains and losses on remeasurement to fair value less costs

of disposal, are recognised in the Income Statement. Once classified as held for sale, intangible

assets and property, plant and equipment are no longer amortised or depreciated.

Disposals of intangible assets and subsidiaries

The financial performance of subsidiaries and businesses is included in the consolidated

Financial Statements up to the point at which the Group ceases to have control over that

subsidiary. Intangible assets not disposed of through the sale of shares in subsidiaries are

treated as disposed at the point that the Group ceases to control the asset.

The difference between the fair value of the consideration (net of costs) and the carrying value

of the assets and liabilities disposed is recognised as a gain or loss in the Income Statement.

Any amounts previously recognised in other comprehensive income in respect of that subsidiary

or asset, including exchange gains or losses on foreign currency translation, are accounted for as

if the Group had directly disposed of related assets and liabilities. This results in a reclassification

of amounts previously recognised in other comprehensive income to the Income Statement and

included within the loss on disposal of intangible assets and related businesses.

Where the assets and liabilities disposed represent a partial disposal of a cash-generating unit

to which goodwill has been allocated, goodwill is allocated using a relative value approach

to the disposal group, unless a different method better reflects goodwill associated with the

disposal.

Where the tax base will not be transferred with the disposed assets, the deferred tax balances

relating to the intangible assets are not considered part of the assets disposed and are instead

credited or charged to the Income Statement within income tax expense.

Liquidation of subsidiaries

The Group liquidates subsidiaries that are no longer required in order to simplify the Group

structure. As part of this process, the Group ensures any outstanding matters relating to

the subsidiary are resolved before liquidation. Any amounts previously recognised in other

comprehensive income in respect of that subsidiary, including exchange gains and losses

on foreign currency translation, are reclassified to the Income Statement on disposal which

is typically on entering liquidation. The amounts previously recognised in other comprehensive

income are included within finance income in the Income Statement.

Non-controlling interests

On an acquisition-by-acquisition basis, the non-controlling interest is measured at either fair

value or a proportionate share of the acquiree’s net assets.

Purchases of non-controlling interests are accounted for as transactions with the owners and

therefore no goodwill is recognised as a result of such transactions.

Notes to the Financial Statements continued

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139

Strategic report Governance Financial statements Other information

1 Accounting Policies continued

Revenue

Revenue from the sale of products is recognised in the Group Income Statement as and

when performance obligations are satisfied by transferring control of the product or service

to the customer.

Net revenue is defined as the amount invoiced to external customers during the year and

comprises, as required by IFRS 15, gross sales net of trade spend and customer allowances

for credit notes, returns and consumer coupons. The methodology and assumptions used to

estimate credit notes, returns and consumer coupons are monitored and adjusted regularly

in light of contractual and legal obligations, historical trends, past experience and projected

market conditions.

Trade spend, which consists primarily of customer pricing allowances, placement/listing fees

and promotional allowances, is governed by sales agreements with the Group’s trade customers

(retailers and distributors). Trade spend also includes reimbursement arrangements under the

Special Supplemental Nutrition Program for Women, Infants and Children (WIC), payable to the

respective US state WIC agencies.

Accruals are recognised under the terms of these agreements to reflect the expected

activity level and the Group’s historical experience. These accruals are reported within trade

and other payables.

Value-added tax and other sales taxes are excluded from net revenue.

Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided

to the Chief Operating Decision Maker (CODM). The CODM, who is responsible for allocating

resources and assessing performance of the operating segments, has been identified as the

Group Executive Committee.

Research and development

Research expenditure is expensed in the year in which it is incurred.

Development expenditure is expensed in the year in which it is incurred, unless it meets the

requirements of IAS 38 to be capitalised and then amortised over the useful life of the

developed product.

Income tax

Income tax on the profit for the year comprises current and deferred tax. Income tax is

recognised in the Income Statement except to the extent that it relates to items recognised

in other comprehensive income or directly in equity, in which case the tax is also recognised

in other comprehensive income or directly in equity, respectively.

Current tax is the expected tax payable on the taxable income for the year, using tax rates

enacted or substantively enacted in each jurisdiction at the Balance Sheet date, and any

adjustment to tax payable in respect of previous years.

Deferred tax is provided in full, using the liability method, on temporary differences arising

between the tax bases of assets and liabilities and their carrying amounts in the consolidated

Financial Statements. Deferred tax is not accounted for if it arises from the initial recognition

of an asset or liability in a transaction (other than a business combination) that affects neither

accounting nor taxable profit or loss at that time. Deferred tax is determined using tax rates

(and laws) that have been enacted or substantively enacted at the Balance Sheet date and are

expected to apply when the deferred tax asset or liability is settled. Deferred tax assets are

recognised to the extent that it is probable that future taxable profit will be available against

which the temporary differences can be utilised.

Deferred tax is provided on temporary differences arising on investments in subsidiaries except

where the investor is able to control the timing of the reversal of the temporary differences

and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets and liabilities within the same tax jurisdiction are offset where there is a

legally enforceable right to offset current tax assets against current tax liabilities and where

there is an intention to settle these balances on a net basis.

Goodwill and other intangible assets

(i) Goodwill

Goodwill is allocated to the cash-generating unit (CGU), or group of CGUs (GCGU), to which

it relates and is tested annually for impairment. Goodwill is carried at cost less accumulated

impairment losses.

(ii) Brands

Separately acquired brands are shown at cost less accumulated amortisation and impairment.

Brands acquired as part of a business combination, and that are separately identifiable, are

recognised at fair value and amortised on a straight-line basis over their useful economic lives

as determined at the acquisition date (up to 20 years), except when their life is determined as

being indefinite.

Applying indefinite lives to certain acquired brands is appropriate due to the stable long-term

nature of the Business and the enduring nature of the brands. A core element of the Group’s

strategy is to invest in building its brands through an ongoing programme of product innovation

and continuing marketing investment. Within the Group, a brand typically comprises an assortment

of base products and more innovative products. Both contribute to the enduring nature of the

brand. The base products establish the long-term positioning of the brand while a succession of

innovations attracts ongoing consumer interest and attention. Indefinite life brands are allocated

to the CGUs or GCGUs to which they relate and are tested annually for impairment.

The Directors also review the useful economic lives of brands annually, to ensure that these lives

are still appropriate. If a brand is considered to have a finite life, its carrying value is amortised

on a straight-line basis over its remaining estimated useful economic life.

(iii) Software

Expenditure relating to the acquisition of computer software licences and systems is capitalised

at cost. The assets are amortised on a straight-line basis over a period of seven years for

systems and five years or less for all other software.

Notes to the Financial Statements continued

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Strategic report Governance Financial statements Other information

1 Accounting Policies continued

Goodwill and other intangible assets continued

(iv) Distribution rights

Payments made in respect of product registration and acquired and reacquired distribution

rights are capitalised where the rights comply with the above requirements for recognition

of acquired brands. If the registration or distribution rights are for a defined time period, the

intangible asset is amortised over that period. If no time period is defined, the intangible asset

is treated in the same way as acquired brands.

(v) Customer contracts

Acquired customer contracts are capitalised at cost. These costs are amortised on a straight-

line basis over the period of the contract.

(vi) Customer relationships

Customer relationships are shown at cost less accumulated amortisation and impairment.

Customer relationships acquired as part of a business combination, and that are separately

identifiable, are recognised at fair value and amortised over their useful economic lives as

determined at the acquisition date (up to 10 years).

(vii) Acquired intellectual property

Intellectual property rights acquired as part of a business and that are separately identifiable

are recognised at fair value and amortised over their useful economic lives as determined

at the acquisition date (up to 20 years).

Amortisation of intangible assets in (ii) to (vii) is charged to cost of goods sold or net operating

expenses depending on the use of the asset.

Property, plant and equipment

Property, plant and equipment is stated at cost less accumulated depreciation and impairment,

with the exception of freehold land, which is shown at cost less impairment. Cost includes

expenditure that is directly attributable to the acquisition of the asset. Except for freehold land

and assets under construction, the cost of property, plant and equipment is depreciated on a

straight-line basis over the period of the expected useful life of the asset. For this purpose,

expected lives are determined within the following limits:

• freehold buildings: not more than 50 years;

• leasehold land and buildings: the lesser of 50 years or the life of the lease; and

• owned plant and equipment: not more than 15 years (except for environmental assets and

spray dryers which are not more than 30 years).

In general, production plant and equipment and office equipment are depreciated over 10 years

or less and motor vehicles and computer equipment over 5 years or less.

Assets’ residual values and useful lives are reviewed annually, and adjusted if necessary.

Property, plant and equipment is reviewed for impairment if events or changes in circumstances

indicate that the carrying amount may not be appropriate. Freehold land is reviewed for

impairment on an annual basis.

Gains and losses on the disposal of property, plant and equipment are determined by comparing

the asset’s carrying value with any sale proceeds and are included in the Income Statement.

Leases

The Group has various lease arrangements for buildings (such as offices and warehouses),

cars, and IT equipment. Lease terms are negotiated on an individual basis locally and subject

to local rules and regulations. At the inception of a lease contract, the Group assesses whether

the contract conveys the right to control the use of an identified asset for a certain period in

exchange for consideration, in which case it is identified as a lease. The Group recognises a right

of use asset and a corresponding lease liability with respect to all lease arrangements in which

it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or

less) and leases of low-value assets. Low-value leases are those with an underlying asset value

of US$5,000 or less. For these leases, the Group recognises the lease payments as an operating

expense on a straight-line basis over the term of the lease.

Right of use assets

At commencement date, right of use assets are measured at cost, which comprises the following:

• the initial measurement of the lease liability;

• prepayments before commencement date of the lease;

• initial direct costs; and

• costs to restore at the termination of the lease.

Subsequent to initial recognition, right of use assets are depreciated on a straight-line basis over

the duration of the contract. Right of use assets are assessed for impairment where indicators

of impairment are present.

Lease liabilities

At commencement date, lease liabilities are measured at the present value of lease payments

not yet paid, including:

• fixed payments excluding lease incentive receivables;

• future contractually agreed fixed increases; and

• payments related to renewals or early termination, when options to renew or for early

termination are reasonably certain to be exercised.

Subsequent to initial recognition lease liabilities are increased by the interest costs on the lease

liabilities and decreased by lease payments made. Lease liabilities are remeasured when

required to account for revised future payments.

Notes to the Financial Statements continued

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1 Accounting Policies continued

Impairment of assets

Assets that have indefinite lives, including goodwill and brands, are tested annually for

impairment at the level where cash flows are considered to be largely independent. This testing

is performed at either the CGU or GCGU level. All CGUs and GCGUs are tested for impairment if

there is an event or circumstance that indicates that their carrying value may not be recoverable.

If the carrying value exceeds its recoverable amount an impairment loss is recognised in the

Income Statement. The recoverable amount is the higher of the CGU’s or GCGU’s value-in-use

and its fair value less costs of disposal.

Value-in-use is calculated with reference to the future and terminal cash flows expected to

be generated by each CGU or GCGU (or group of assets where cash flows are not identifiable

to specific assets) and discounted to present value. The discount rates used in the impairment

reviews are based on the weighted average cost of capital (WACC) specific to each CGU and

GCGU, with the WACC converted to the implied pre-tax rates.

Fair value less costs of disposal is calculated using a discounted cash flow approach prepared

on a market participant basis, with a post-tax discount rate applied to projected risk-adjusted

post-tax cash flows and terminal value.

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost comprises materials,

direct labour and an appropriate portion of overhead expenses (based on normal operating

capacity) required to get the inventory to its present location and condition. Inventory valuation

is determined on a first in, first out (FIFO) basis. Net realisable value represents the estimated

net selling price less applicable selling expenses.

Trade and other receivables

Trade and other receivables are initially recognised at the fair value of consideration plus

transaction costs and subsequently held at amortised cost, less provision for discounts and

doubtful debts. Allowance losses are calculated by reviewing lifetime expected credit losses

using historical and forward-looking data on credit risk.

Trade and other payables

Trade and other payables are initially recognised at fair value less transaction costs and

subsequently carried at amortised cost.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances, deposits held with banks and other short

term, highly liquid investments with original maturities of three months or less.

For the purpose of the Cash Flow Statement, bank overdrafts that form an integral part of

the Group’s cash management, and are repayable on demand, are included as a component

of cash and cash equivalents. Bank overdrafts are included within short-term borrowings

in the Balance Sheet.

Borrowings

Interest-bearing borrowings are recognised initially at fair value less, where permitted by IFRS 9,

any directly attributable transaction costs. Subsequent to initial recognition, interest-bearing

borrowings are stated at amortised cost with any difference between cost and redemption

value being recognised in the Income Statement over the period of the borrowings on an

effective interest basis.

Cash flows relating to interest are presented within operating cash flows. Proceeds and

repayment of principal amounts are presented as financing cash flows and are presented gross,

except for borrowings with maturities of less than three months (including commercial paper),

which are presented net.

Derivative financial instruments and hedging activity

The Group may use derivatives to manage its exposures to fluctuating interest and foreign

exchange rates. These instruments are initially recognised at fair value on the date the contract

is entered into and are subsequently remeasured at their fair value. The method of recognising

the resulting gain or loss depends on whether the derivative is designated as a hedging

instrument and, if so, the nature of the item being hedged.

At the inception of designated hedge relationships, the Group documents its risk management

objectives and strategy for undertaking various hedging transactions. The Group also

documents its assessment, both at hedge inception and on an ongoing basis, of whether the

derivatives that are used in hedging transactions are highly effective in offsetting changes in

cash flows or fair values of hedged items.

The Group designates certain derivatives as either:

• hedges of a particular risk associated with a recognised asset or liability or a highly probable

forecast transaction (cash flow hedges); or

• hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedges).

Derivatives designated as cash flow hedges

The effective portion of changes in the fair value of derivatives that are designated and qualify

as cash flow hedges is recognised in other comprehensive income and accumulated in the

hedging reserve. Any gain or loss relating to the ineffective portion is recognised immediately

in the Income Statement.

When the hedged forecast transaction subsequently results in the recognition of a non-financial

item such as inventory, the amount accumulated in the hedging reserve and the cost of the

hedging reserve is included directly in the initial cost of the non-financial item when it is

recognised. For all other transactions, the amounts accumulated in the hedging reserve are

recycled to the Income Statement in the period (or periods) when the hedged item affects

the Income Statement.

If the hedge no longer meets the criteria for hedge accounting or the hedging instrument is

sold, expires, is terminated or is exercised, then hedge accounting is discontinued prospectively.

The amount that has been accumulated in the hedging reserve remains in equity until it is either

included in the cost of a non-financial item or recycled to the Income Statement.

Notes to the Financial Statements continued

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1 Accounting Policies continued

Derivative financial instruments and hedging activity continued

Derivatives designated as fair value hedges

Fair value hedges are used to manage the currency and/or interest rate risks to which the fair

value of certain assets and liabilities are exposed. Changes in the fair value are recognised in the

Income Statement, together with any changes in the fair value of the hedged asset or liability

that are attributable to the hedged risk. If such a hedge relationship no longer meets hedge

accounting criteria, fair value movements on the derivative continue to be taken to the Income

Statement while any fair value adjustments made to the underlying hedged item to that date

are amortised through the Income Statement over its remaining life using the effective interest

rate method.

Changes in the fair value of any derivative instruments that do not qualify for hedge accounting

are recognised immediately in the Income Statement.

Net investment hedges

Gains and losses on those hedging instruments designated as hedges of the net investments in

foreign operations are recognised in other comprehensive income to the extent that the hedging

relationship is effective. Gains and losses accumulated in the foreign currency translation reserve

are recycled to the Income Statement when the foreign operation is disposed of.

Equity investments

Equity investments are investments that are neither held for trading nor classified as

investments in subsidiaries, associates or joint venture arrangements. Subsequent to their

initial recognition, equity investments are stated at their fair value. Gains and losses arising

from subsequent changes in the fair value are recognised in the Income Statement or in other

comprehensive income on a case-by-case basis. Accumulated gains and losses included in

other comprehensive income are not recycled to the Income Statement. Dividends from equity

investments are recognised in the Income Statement.

Investment in associates

Investments in associates are accounted for using the equity method. An associate is an entity

over which the Group has significant influence, being the power to participate in the investee’s

financial and operating policy decisions without control or joint control.

Interests in associates are stated in the consolidated Balance Sheet at cost, adjusted for the

movement in the Group’s share of their net assets and liabilities. The Group’s share of the profit

or loss after tax of associates is included in the Group’s consolidated profit before taxation.

Unrealised intragroup profits or losses from transactions are offset against the carrying amount

of the investment on a pro-rata basis during consolidation, if material.

When the Group’s share of losses exceeds its interest in an associate, the Group does not

recognise further losses, unless it has incurred obligations or made payments on behalf of

the associate.

The Financial Statements of the companies accounted for using the equity method are prepared

in accordance with uniform accounting and measurement methods throughout the Group.

Employee share schemes

Incentives in the form of shares are provided to employees under equity-settled share option

and restricted share plans, which have various combinations of market-based and non-market

performance conditions, service conditions, and non-vesting conditions.

The fair value determined at the award grant date takes into account the probability of any

relevant market-based performance conditions and non-vesting conditions being satisfied and

is subsequently expensed on a straight-line basis over the vesting period, based on the Group’s

estimate of equity instruments that will eventually vest. This estimate takes into account the

expected outcome for relevant non-market performance conditions and service conditions but

assumes satisfaction of all market-based performance conditions and non-vesting conditions.

At each Balance Sheet date, the Group revises its estimate of the number of equity instruments

expected to vest. The impact of the revision of the original estimates, if any, is recognised in the

Income Statement such that the cumulative expense reflects the revised estimate, with a

corresponding adjustment to equity reserves.

Additional employer costs, including social security taxes, in respect of options and awards are

charged to the Income Statement over the same period with a corresponding liability recognised.

Pension commitments

Group companies operate defined contribution and (funded and unfunded) defined benefit

pension plans.

The cost of providing pensions to employees who are members of defined contribution plans is

charged to the Income Statement as contributions are made. The Group has no further payment

obligations once the contributions have been paid.

The deficit or surplus recognised in the Balance Sheet in respect of defined benefit pension

plans is the present value of the defined benefit obligation at the Balance Sheet date, less

the fair value of the plan assets. The defined benefit obligation is calculated annually by

independent actuaries using the projected unit credit method. The present value of the defined

benefit obligation is determined by discounting the estimated future cash flows by the yield on

high-quality corporate bonds denominated in the currency in which the benefits will be paid

and that have a maturity approximating to the terms of the pension obligations. The costs of

providing these defined benefit plans are accrued over the period of employment. Actuarial

gains and losses are recognised immediately in other comprehensive income.

Past service costs are recognised immediately in the Income Statement.

The net interest amount is calculated by applying the discounted rate used to measure the

defined benefit obligation at the beginning of the period to the net defined benefit liability/asset.

The net pension plan interest is presented within other finance income/other finance expense.

Notes to the Financial Statements continued

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1 Accounting Policies continued

Post-retirement benefits other than pensions

Some Group companies provide post-retirement medical care and other benefits to their

retirees. The costs of providing these benefits are accrued over the period of employment and

the liability recognised in the Balance Sheet is calculated using the projected unit credit method

and is discounted to its present value and the fair value of any related asset is deducted.

Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a

result of past events; it is more likely than not that there will be an outflow of resources to settle

that obligation; and the amount can be reliably estimated. Provisions are valued at the present

value of the Directors’ best estimate of the expenditure required to settle the obligation at the

Balance Sheet date. Where it is possible that an outflow of resources may be required to settle

the obligation or it is not possible to make a reliable estimate of the financial impact, appropriate

disclosure is made but no provision recognised.

Repurchase and reissuance of ordinary shares

When shares recognised as equity are repurchased, the amount of the consideration paid,

including directly attributable costs, is recognised as a charge to equity. Repurchased shares are

classified as Treasury shares and are presented in retained earnings. When Treasury shares are

sold or reissued subsequently, the amount received is recognised as an increase in equity and any

resulting surplus is presented within share premium or deficit presented within retained earnings.

Cancellation of ordinary shares

The nominal value of shares cancelled is transferred from share capital to the capital

redemption reserve.

Dividend distribution

Dividends to owners of the Parent Company are recognised as a liability in the period in which

the dividends are approved by the Company’s shareholders. Interim dividends are recorded

in the period in which they are approved and paid.

Dividend payments are recorded at fair value. Where non-cash dividend payments are made,

gains arising as a result of fair value remeasurements are recognised in the Income Statement

in the same period.

Accounting estimates and judgements

In preparing these consolidated Financial Statements, management has made judgements

and estimates that affect the application of the Group’s accounting policies and the reported

amounts of assets, liabilities, income and expenses. Actual amounts and results may differ

from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognised in the period in which the estimate is revised if the revision

affects only that period, or in the period of the revision and future periods if the revision affects

both current and future periods.

Critical judgements in applying the Group’s accounting policies

Over the course of the year, management has made a number of critical judgements in the

application of the Group’s accounting policies. These include the following:

• management has identified matters (including the Korea Humidifier Sanitiser, Necrotizing

Enterocolitis, Phenylephrine and UK Securities issues) that may incur liabilities in the future

but does not recognise these liabilities when it is too early to determine the likely outcome

or make a reliable estimate (Note 18, Note 20);

• the continuing enduring nature of the Group’s brands supports the indefinite life assumption

for certain of these assets (Note 9);

• assumptions are made as to the recoverability of tax assets especially as to whether there will

be sufficient future taxable profits in the same jurisdictions to fully utilise losses in future years

(Note 12); and

• assessment of whether Essential Home is a discontinued operation under IFRS 5 (note 29).

Key sources of estimation uncertainty

Each year, management is required to make a number of assumptions regarding the future. The

related year-end accounting estimates will, by definition, seldom equal the final actual results.

The estimates and assumptions that have a significant risk of causing a material adjustment to

the carrying amounts of assets and liabilities within the next financial year are addressed below.

Goodwill and indefinite life intangible assets:

Under IFRS, goodwill and other indefinite life intangible assets must be tested for impairment

on at least an annual basis. As disclosed further in Note 9, this testing generally requires

management to make multiple estimates, for example around individual market pressures and

forces, future price and volume growth, future margins, terminal growth rates and discount rates.

The recoverability of the Group’s goodwill and indefinite life intangible assets in relation to the

Mead Johnson Nutrition (MJN) cash-generating unit is sensitive to reasonably possible changes

in key assumptions. Further information on key estimates and assumptions, including details on

the sensitivities of the value-in-use estimates to reasonable changes in key assumptions, is

included in Note 9.

Notes to the Financial Statements continued

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1 Accounting Policies continued

Accounting estimates and judgements continued

Key sources of estimation uncertainty continued

Tax:

The actual tax paid on profits is determined based on tax laws and regulations that differ

across the numerous jurisdictions in which the Group operates. Assumptions are made in

applying these laws to the taxable profits in any given period in order to calculate the tax charge

or credit for that period. Where the eventual tax paid or reclaimed is different to the amounts

originally estimated, the difference is charged or credited to the Income Statement in the period

in which it is determined (Note 7).

The Group operates in an international tax environment and is subject to tax examinations and

uncertainties in a number of jurisdictions. The issues involved can be complex and disputes may

take a number of years to resolve. Each uncertainty is separately assessed and management

applies judgement in the recognition and measurement of the uncertainty based on the relevant

circumstances. The exposure recognised is calculated based on the expected value method

or the most likely outcome method, depending on whether there are a wide range of possible

outcomes or if resolution of the uncertainty is concentrated on one outcome. In particular, the

range of possible outcomes relating to transfer pricing exposures can be wide and, in these

scenarios, the expected value method is employed. The accounting estimates and judgements

considered include:

• status of the unresolved matter;

• clarity of relevant legislation and related guidance;

• pre-clearances issued by taxing authorities;

• advice from in-house specialists and opinions of professional firms;

• resolution process and range of possible outcomes;

• past experience and precedents set by the particular taxing authority;

• decisions and agreements reached in other jurisdictions on comparable issues;

• unutilised tax losses, tax credits and availability of mutual agreement procedures between tax

authorities; and

• statute of limitations.

Management is of the opinion that the carrying values of the liability for uncertain tax positions

made in respect of these matters represent its best estimate once all facts and circumstances

have been taken into account. Nevertheless, the final amounts paid to discharge the liabilities

arising (either through negotiated settlement or litigation) may be different from the position

recognised. The liabilities recognised in respect of uncertain tax positions as at 31 December

2025 are £604m (2024: £711m) (Note 22).

Trade spend:

The Group provides for amounts payable to its trade customers for promotional activity and

government reimbursement arrangements. Where an activity spans the year end, an accrual

is reflected in the consolidated Financial Statements based on our estimation of customer

and consumer uptake during the relevant period and the extent to which temporary funded

activity has occurred. As there is a timing difference between that initial estimation and final

settlement of trade spend with our customers, differences can result on final settlement. As

at 31 December 2025, the Group recognised total accruals of £921 million (2024: £1,074 million)

in respect of amounts payable to trade customers and government bodies for trade spend. The

Group’s trade spend arrangements vary considerably by market and category, and the Group’s

trade spend accruals are made up of many individually small accruals. Therefore, an aggregated

disclosure of sensitivity analysis on the key inputs to trade spend accrual estimates would not

be practicable or meaningful. Nevertheless, a 15% (2024: 13%) difference between those initial

estimates and final settlement would cause a material charge or credit to the Income Statement

in the next financial year. During 2025, adjustments to trade spend accruals as at 31 December

2024, due to changes in accounting estimates, were £78 million (2024: £77 million adjustment

to trade spend accruals as at 31 December 2023, due to changes in accounting estimates).

Legal provisions:

The Group recognises legal provisions when the Group has a present legal or constructive

obligation as a result of past events; it is more likely than not that there will be an outflow

of resources to settle that obligation; and the amount can be reliably estimated. The level of

provisioning in relation to civil and/or criminal investigations is an area where management and

legal judgement are important, with individual provisions being based on best estimates of the

possible loss, considering all available information, external advice and historical experience.

As at 31 December 2025, the Group recognised legal provisions of £108 million (2024: £112 million)

in relation to a number of historical regulatory and other matters in various jurisdictions.

2 Operating Segments

On 1 January 2025, the Group’s operating segments changed from Hygiene, Health and

Nutrition to Core Emerging Markets, Core Europe, Core North America, Essential Home and

Mead Johnson Nutrition.

This change aligns the operating segments with the strategic update announced on 24 July 2024

and subsequent reorganisation effective 1 January 2025. From 1 January 2025 information

is presented to, and reviewed by, the Group’s Chief Operating Decision Maker (CODM) for the

purposes of making strategic decisions and assessing Group-wide performance on this basis.

The CODM is the Group Executive Committee. This Committee is responsible for the

implementation of strategy (approved by the Board), the management of risk (delegated by the

Board) and the review of Group operational performance and ongoing business integration.

The Group Executive Committee assesses the performance of these operating segments based

on net revenue from external customers and segment profit being adjusted operating profit.

Intercompany transactions between operating segments are eliminated. Finance income and

expense are not allocated to segments, as each is managed on a centralised basis.

Notes to the Financial Statements continued

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Strategic report Governance Financial statements Other information

2 Operating Segments continued

The segment information for the operating segments for the year ended 31 December 2025 and year ended 31 December 2024 is as follows:

			Core			Mead
	Core	Core	Emerging	Total Core	Essential	Johnson	Adjusting
	North America	Europe	Markets	Reckitt	Home	Nutrition	items	Total
Year ended 31 December 2025	£m	£m	£m	£m	£m	£m	£m	£m
Net Revenue	2,559	3,384	4,291	10,234	1,852	2,119	–	14,205
Depreciation and amortisation (Notes 9 and 10)	(83)	(130)	(123)	(336)	(21)	(79)	(63)	(499)
Gain on disposal 1	–	–	–	–	–	–	1,245	1,245
Operating profit	771	1,064	896	2,731	379	433	674	4,217
Net finance expense								(379)
Profit before income tax								3,838
Income tax charge								(635)
Net profit from continuing operations								3,203

			Core			Mead
	Core	Core	Emerging	Total Core	Essential	Johnson	Adjusting
	North America	Europe	Markets	Reckitt	Home	Nutrition	items	Total
Year ended 31 December 2024 2	£m	£m	£m	£m	£m	£m	£m	£m
Net Revenue	2,641	3,487	3,884	10,012	2,046	2,111	–	14,169
Depreciation and amortisation	(69)	(116)	(120)	(305)	(43)	(88)	(25)	(461)
Operating profit	804	1,049	731	2,584	492	399	(1,050)	2,425
Net finance expense								(321)
Profit before income tax								2,104
Income tax charge								(672)
Net profit from continuing operations								1,432

1 Gain on disposal comprises a gain of £1,245 million on the disposal of Essential Home. Further details can be found in note 29

2 Net Revenue, depreciation and amortisation and operating profit have been restated for the new operating segments

Reckitt’s brand portfolio is managed on a category basis. The Group’s GCGUs are defined on this basis and represent the lowest level at which goodwill is monitored for internal management purposes (Note 9).

Net revenue by product category for the year ended 31 December 2025 and year ended 31 December 2024 is as follows:

	2025	2024
	£m	£m
Self Care	3,306	3,290
Germ Protection	3,224	3,086
Household Care	2,189	2,254
Intimate Wellness	1,515	1,382
Total Core Reckitt	10,234	10,012
Essential Home	1,852	2,046
Mead Johnson Nutrition	2,119	2,111
Total Group Revenue	14,205	14,169

Notes to the Financial Statements continued

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2 Operating Segments continued

Financial information for the operating segments is presented on an adjusted basis which

excludes certain cash and non-cash items. These items have a pattern of recognition that is

largely uncorrelated with the trading performance of the Business. Financial information on

an adjusted basis is consistent with how management reviews the Business for the purpose

of making operating decisions. Further detail on adjusting items, which includes in the year to

31 December 2025 a £175 million impairment of Biofreeze intangible assets, a gain of £1,245 million

on the disposal of Essential Home, and restructuring/other project costs of £195 million linked

to the Group strategic announcements in 2024, is included on page 208.

The Company is domiciled in the UK. The split of net revenue from external customers and

non-current assets (other than equity instruments, deferred tax assets and retirement benefit

surplus assets) between the UK, the US (being the biggest country outside the country of

domicile) and all other countries is:

			All other
	UK	US	countries	Total
2025	£m	£m	£m	£m
Net Revenue	814	4,070	9,321	14,205
Goodwill and other intangible assets	1,908	7,535	6,368	15,811
Property, plant and equipment	286	827	1,395	2,508
Other non-current receivables (excluding
derivative financial instruments) and investments in associates	223	17	171	411

			All other
	UK	US	countries	Total
2024	£m	£m	£m	£m
Net Revenue	886	4,183	9,100	14,169
Goodwill and other intangible assets	1,911	8,980	6,674	17,565
Property, plant and equipment	283	788	1,314	2,385
Other non-current receivables (excluding
derivative financial instruments) and investments in associates	6	19	88	113

Major customers are typically large grocery chains, distributors and e-commerce platforms.

The Group’s customer base is diverse with no individual customer accounting for more than

10% of net revenue (2024: no individual more than 10% of revenue).

3 Analysis of Net Operating Expenses

	2025	2024
	£m	£m
Gain on disposal 4	1,245	–
Distribution costs 1	(3,553)	(3,537)
Research and development costs	(316)	(325)
Other administrative expenses 2	(1,539)	(1,474)
Impairment of intangible assets 3	(256)	(839)
Other net operating income	2	5
Net operating expenses	(4,417)	(6,170)

1 Included in distribution costs is an amount of £2,337 million (2024: £2,162 million) relating to marketing costs

2 Other administrative expenses includes a net foreign exchange gain of £5 million (2024: loss of £13 million) and £195 million

(2024: £167 million) of restructuring and other project costs linked to the group strategic announcements in 2024. This

principally includes professional advisor fees and severance costs relating to business transformation and portfolio changes

3 Impairment of intangible assets includes £175 million relating to Biofreeze trademarks and licences, £23 million relating to other

brands, £52 million relating to Sustagen and Digestive Advantage trademarks and licences and £6 million relating to software

(2024: £838 million impairment relating to the MJN and Biofreeze businesses). Further details can be found in Note 9

4 Gain on disposal comprises a gain of £1,245 million on the disposal of Essential Home. Further details can be found in note 29

4 Auditor Remuneration

During the year, the Group (including its overseas subsidiaries) obtained the following services

from the Company’s Auditor and its associates:

	2025	2024
	£m	£m
Audit services pursuant to legislation
Audit of the Group’s Annual Report and Financial Statements	8.2	8.0
Audit of the Financial Statements of the Group’s subsidiaries	11.8	11.7
Audit-related assurance services	1.1	0.9
Total audit and audit-related services	21.1	20.6
Fees payable to the Company’s Auditor and its associates
for other services
Other assurance services	7.4	3.6
Total non-audit services	7.4	3.6
	28.5	24.2

Notes to the Financial Statements continued

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5 Employee Costs

Total employee costs, including those for Directors, were:

		2025	2024
	Note	£m	£m
Wages and salaries		1,895	2,026
Social security costs		278	272
Other pension costs	23	59	63
Share-based payments	25	101	85
Total staff costs		2,333	2,446

Executive and Non-Executive Directors’ aggregate emoluments are disclosed on pages 84 to 111

of the Directors’ Remuneration Report. Compensation awarded to key management (defined as

the members of the Group Executive Committee and the Non-Executive Directors) was:

	2025	2024
	£m	£m
Short-term employee benefits	23	26
Post-employment and other long-term benefits	–	–
Share-based payments	21	22
	44	48

Staff numbers

The monthly average number of people employed by the Group, including Directors, during the

year was:

	2025	2024 1
	’000	’000
North America	5.0	5.0
Europe	12.7	13.5
Emerging Markets	18.5	19.4
	36.2	37.9

1 The analysis of staff numbers by geographic area has been restated due to the Group reorganisation announced on 24 July

2024 and effective 1 January 2025

6 Net Finance Expense

	2025	2024
	£m	£m
Finance income
Interest income on cash and cash equivalents	41	53
Pension net finance income	7	5
Finance income on tax balances	2	15
Other finance income	1	8
Total finance income	51	81
Finance expense
Interest payable on borrowings	(375)	(363)
Forward purchase agreement interest expense	(35)	(17)
Interest payable on leases	(13)	(13)
Other finance expense	(7)	(9)
Total finance expense	(430)	(402)
Net finance expense	(379)	(321)

7 Income Tax Expense

	2025	2024
	£m	£m
Current tax 2	1,040	952
Adjustment in respect of prior periods 2	(193)	(252)
Total current tax	847	700
Origination and reversal of temporary differences	(268)	(66)
Adjustments in respect of previous periods	54	36
Impact of changes in tax rates	2	2
Total deferred tax	(212)	(28)
Income tax charge	635	672

2 The 2024 comparative has been restated for a £205m reclassification from current tax to adjustments in respect of

prior periods. This has been made to present prior year movements in respect of uncertain tax positions consistently

in 2025 and 2024

Notes to the Financial Statements continued

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Strategic report Governance Financial statements Other information

7 Income Tax Expense continued

Current tax includes tax incurred by UK entities of £146 million (2024: £97 million). This is

comprised of UK corporation tax of £97 million (2024: £62 million) and overseas tax suffered of

£49 million (2024: £35 million). UK current tax is calculated at 25% (2024: 25%) of the estimated

assessable profit for the year, net of relief for overseas taxes where available. Taxation in other

jurisdictions is calculated at the rates prevailing in the relevant jurisdictions.

Cash tax paid in the year was £897 million (2024: £700 million). The variance from the current

year tax charge of £1,040 million is attributable to movements on uncertain tax positions (shown

in Note 22) and timing differences arising between the accrual and payment of current income

tax liabilities payable to taxing authorities.

The net benefit in respect of prior periods of £139m is primarily attributable to the reassessment

of several uncertain tax positions following the receipt of new information during the year.

Further progress has been made on resolving tax authority audits in 2025 and certain statutes

of limitation relating to uncertain tax positions carried on balance sheet at 31 December 2024

expired in the year. None of the uncertain tax positions subject to reassessment were individually

material to the Financial Statements.

The total tax charge on the Group’s profit for the year can be reconciled to the notional tax

charge calculated at the UK tax rate as follows:

	2025	2024
Continuing operations	£m	£m
Profit before income tax	3,838	2,104
Tax at the notional UK corporation tax rate of 25% (2024: 25%)	959	526
Effect of:
Overseas tax rates	1	8
Movement in provision related to uncertain tax positions (Note 22) 1	31	62
Net impact of divestments and assets reclassified to held for sale	(351)	(3)
Unrecognised tax losses, other unrecognised tax assets and deferred tax liability on unremitted earnings	35	36
Withholding and local taxes	65	30
Reassessment of prior year estimates 1	(139)	(216)
Impact of changes in tax rates	2	2
Non-deductible impairment of goodwill	–	174
Other permanent differences	32	53
Income tax charge	635	672

1 The 2024 comparative has been restated for a £205m reclassification from movement in provision related to uncertain

tax positions to reassessment of prior year estimates. This has been made to present prior year movements in respect

of uncertain tax positions consistently in 2025 and 2024

Our effective tax rate in any given financial year reflects a variety of factors that may not be

present in succeeding financial years and may be affected by variations in profit mix and

changes in tax laws, regulations and related interpretations.

The net impact of divestments and assets reclassified to held for sale is attributable to the

non-taxable treatment of a significant component of the Essential Home disposal. In addition,

there is a favourable deferred tax impact of Essential Home intangible assets disposed, net of

cumulative foreign exchange recycled to the income statement. Further details on the disposal

are provided at Note 29.

The Group is within the scope of the OECD Pillar Two rules which took effect on 1 January 2024.

The Company recorded a Pillar Two current tax expense of £4 million for 2025 (2024: £1 million).

The Group has applied the temporary mandatory exception from accounting for deferred taxes

arising from the Pillar Two model rules as set out in ‘International Tax Reform – Pillar Two Model

Rules (Amendments to IAS 12)’ issued by the IASB in May 2023.

The effect of overseas tax rates represents the impact of profits arising outside the UK that

are taxed at different rates to the UK rate. Withholding and local taxes suffered in the year

are adjusted for previously accrued deferred tax liabilities on unremitted earnings.

The 2024 impact of non-deductible goodwill impairment is attributable to MJN.

We conduct business operations in a number of countries and are therefore subject to tax

and intercompany pricing laws in multiple jurisdictions. We have in the past faced, and may in

the future face, audits and challenges brought by tax authorities, and we are involved in ongoing

tax investigations in a number of countries. If material challenges were to be successful, our

effective tax rate may increase, we may be required to modify structures at significant costs to

us, we may also be subject to interest and penalty charges and we may incur costs in defending

litigation or reaching a settlement. Any of the foregoing could materially and adversely affect

our Business, financial condition and results of operations.

Notes to the Financial Statements continued

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Strategic report Governance Financial statements Other information

7 Income Tax Expense continued

The tax credited /(charged) relating to components of other comprehensive income is as follows:

		2025			2024
					Tax
		Tax credit			(charge)
	Before tax	/(charge)	After tax	Before tax	/credit	After tax
	£m	£m	£m	£m	£m	£m
Net exchange losses on foreign currency translation	(129)	(1)	(130)	(438)	(4)	(442)
Reclassification of foreign
currency translation reserves
on disposals or liquidation of foreign operations	(202)	66	(136)	(11)	–	(11)
(Gains)/losses on cash flow
and net investment hedges	(103)	5	(98)	123	–	123
Remeasurement of defined
benefit pension plans
(Note 23)	16	(5)	11	(13)	–	(13)
Revaluation of equity instruments	(6)	(13)	(19)	(27)	(1)	(28)
Other comprehensive
(expense)/income	(424)	52	(372)	(366)	(5)	(371)
Current tax		(14)			–
Deferred tax (Note 12)		66			(5)
		52			(5)

8 Earnings Per Share

	2025	2024
	pence	pence
Basic earnings per share
From continuing operations	470.7	204.2
From discontinued operations	(2.4)	(0.6)
Total basic earnings per share	468.3	203.6
Diluted earnings per share
From continuing operations	469.5	203.8
From discontinued operations	(2.3)	(0.6)
Total diluted earnings per share	467.2	203.2

Basic

Basic earnings per share is calculated by dividing the net income attributable to owners of the

Parent Company from continuing operations (2025: £3,198 million income, 2024: £1,430 million

income) and discontinued operations (2025: £16 million expense; 2024: £4 million expense) by

the weighted average number of ordinary shares in issue during the year (2025: 679,416,359;

2024: 700,386,007).

Diluted

Diluted earnings per share is calculated by adjusting the weighted average number of shares

outstanding to assume conversion of all potentially dilutive ordinary shares. The Company

has the following categories of potentially dilutive ordinary shares: Executive Share Awards

(including Executive Share Options and Executive Restricted Share Scheme Awards) and

Employee Sharesave Scheme Options. The options only dilute earnings when they result in the

issue of shares at a value below the market price of the share and when all performance criteria

(if applicable) have been met as at the Balance Sheet date. As at 31 December 2025, there were

15,334,155 (2024: 16,237,641) Executive Share Awards excluded from the dilution because the

exercise price for the options was greater than the average share price for the year or the

performance criteria have not been met.

	2025	2024
	average	average
	number of	number of
	shares	shares
On a basic basis	679,416,359	700,386,007
Dilution for Executive Share Awards	1,480,042	1,261,552
Dilution for Employee Sharesave Scheme Options	246,313	94,701
On a diluted basis	681,142,714	701,742,260

Notes to the Financial Statements continued

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9 Goodwill and Other Intangible Assets

	Brands	Goodwill	Software	Other	Total
	£m	£m	£m	£m	£m
Cost
At 1 January 2024	13,817	10,393	753	313	25,276
Additions	–	–	95	–	95
Arising on business combinations	–	2	1	–	3
Disposals	–	(8)	(5)	–	(13)
Reclassifications	5	(4)	–	(1)	–
Exchange adjustments	(118)	(40)	(10)	7	(161)
At 31 December 2024	13,704	10,343	834	319	25,200
Additions	–	–	78	1	79
Arising on business combinations	–	–	–	–	–
Disposals	(929)	(4)	(20)	–	(953)
Reclassifications	–	–	–	–	–
Exchange adjustments	(419)	(419)	(1)	(13)	(852)
At 31 December 2025	12,356	9,920	891	307	23,474
Accumulated amortisation and impairment
At 1 January 2024	311	5,815	412	150	6,688
Amortisation	21	–	79	8	108
Impairment	143	696	–	–	839
Disposals	(1)	–	(1)	–	(2)
Exchange adjustments	(7)	11	(5)	3	2
At 31 December 2024	467	6,522	485	161	7,635
Amortisation	57	–	78	8	143
Impairment 1	250	–	6	–	256
Disposals	–	–	(12)	–	(12)
Reclassifications	–	–	–	–	–
Exchange adjustments	(17)	(335)	–	(7)	(359)
At 31 December 2025	757	6,187	557	162	7,663
Net book value
At 31 December 2024	13,237	3,821	349	158	17,565
At 31 December 2025	11,599	3,733	334	145	15,811

1 Includes impairment of Biofreeze. See Annual Impairment Review section below

The amount stated for brands represents the fair value of brands acquired since 1985 at the

date of acquisition. Other includes product registration, distribution rights, capitalised product

development costs and customer contracts.

Software includes intangible assets under construction of £82 million (2024: £107 million).

The net book values of significant brand intangible assets acquired through business

combinations are as follows:

	Acquisition	2025	2024
Acquisition	year	£m	£m
Mead Johnson Nutrition Company	2017	4,222	4,503
SSL International	2010	1,835	1,790
Boots Healthcare International	2006	1,383	1,363
Adams Respiratory Therapeutics	2008	1,143	1,230
Schiff Nutrition International	2012	921	1,050
L&F Household	1994	543	846
Lanai Holdings	2021	299	511
American Home Products Corporation	1990	41	440
Bristol-Myers Squibb OTC	2013	312	297
K-Y	2014	280	280

The majority of brands, all of goodwill and certain other intangible assets are considered to have

indefinite lives (see Note 1) and therefore are subject to an annual impairment review. In 2025,

following the announcement of the disposal of Essential Home which included 84 brands, the

Group performed a review of the remaining non-Power Brands and identified a number of brand

intangible assets which should no longer be treated as indefinite life. Brands with a carrying

value of £748 million previously considered indefinite life have been reallocated to finite life

assets. The amortisation is recognised in net operating expenses.

The net book values of indefinite and finite life intangible assets are as follows:

	2025	2024
Net book value	£m	£m
Indefinite life assets
Brands	10,906	13,166
Goodwill	3,733	3,821
Other	106	115
Total indefinite life assets	14,745	17,102
Finite life assets
Brands	693	71
Software	334	349
Other	39	43
Total finite life assets	1,066	463
Total net book value of intangible assets	15,811	17,565

Notes to the Financial Statements continued

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9 Goodwill and Other Intangible Assets continued

Cash-generating units

Goodwill is allocated to either individual cash-generating units (CGUs) or groups of cash-

generating units.

After considering all the evidence available, including how brand and production assets

generate cash inflows and how management monitors the Business, the Directors have

concluded that for the purpose of impairment testing of goodwill, the level at which goodwill

is monitored is on a category basis, being Household Care, Germ Protection, Intimate Wellness,

Self Care, and Mead Johnson Nutrition (MJN). This is distinct from the Group’s operating

segments which are on a geographical area basis for Core Reckitt and a category basis for

MJN. This reflects the matrix structure of Core Reckitt, with financial reporting on both bases.

Reckitt’s brand portfolio is managed on a category basis. Goodwill occurs as brands are

acquired and is integrated into the wider Business over time. Hence categories represent

the lowest level within the entity at which goodwill is monitored for internal management

purposes. Certain indefinite life brands are tested at a lower level, including Sexual Wellbeing

(previously called Intimate Wellness) and Biofreeze, due to the manufacturing footprint.

Prior to 1 January 2025, the Group’s GCGUs/CGUs were Health, Hygiene and MJN for the purpose

of testing both goodwill and other intangible assets. Goodwill has been reallocated from Health

and Hygiene to the Reckitt core categories. The Health goodwill has been split amongst Self

Care and Intimate Wellness on the basis of relative values. The Hygiene goodwill has been split

amongst Germ Protection and Household Care on the basis of relative values. This is reflective

of the brands within the categories.

Goodwill and indefinite life assets are allocated to GCGUs/CGUs as follows:

		2025
	Indefinite
	life assets	Goodwill	Total
GCGU/CGU	£m	£m	£m
Germ Protection	642	23	665
Household Care	236	17	253
Self Care	3,665	2,375	6,040
Intimate Wellness	2,264	1,318	3,582
Reckitt Core	6,807	3,733	10,540
MJN 1	4,205	–	4,205
Total Group	11,012	3,733	14,745

		2024
	Indefinite
	life assets	Goodwill	Total
GCGU/CGU	£m	£m	£m
Health 2	6,981	3,776	10,757
Hygiene	1,828	45	1,873
MJN	4,472	–	4,472
Total Group	13,281	3,821	17,102

1 The IFCN CGU has been renamed Mead Johnson Nutrition (MJN). The composition of the CGU has not changed

2 The indefinite lived intangible assets and goodwill for VMS, and goodwill for Biofreeze, were transferred to the Health GCGU in 2023

The indefinite life brands held in the CGUs shown below are considered significant within the

total carrying amounts of indefinite life brands as at 31 December 2025:

	2025
Indefinite life assets excluding goodwill	£m
Sexual Wellbeing	1,907
Biofreeze	299

	2024
Indefinite life assets excluding goodwill	£m
Sexual Wellbeing 3	2,083
Biofreeze	481

3 The Sexual Wellbeing CGU was previously called Intimate Wellness in 2024

Annual impairment review

Goodwill and other indefinite life intangible assets must be tested for impairment on at least an

annual basis. An impairment loss is recognised when the recoverable amount of a GCGU or CGU

falls materially below its net book value at the date of testing.

The determination of recoverable amount, being the higher of value-in-use and fair value less

costs to dispose, is inherently judgemental and requires management to make multiple

estimates, for example around individual market pressures and forces, future price and volume

growth, future margins, terminal growth rates and discount rates.

When forecasting the annual cash flows that support the recoverable amount, the Group

generally uses its short-term budgets and medium-term strategic plans, with additional senior

management and Board-level review. Cash flows beyond the five-year period are projected

using terminal growth rates. These rates do not exceed the long-term average growth rate

for the products and markets in which the GCGU or CGU operates.

The cash flows are discounted back to their present value using a pre-tax discount rate

considered appropriate for each GCGU or CGU. These rates have been derived from

management’s views on the relevant weighted average cost of capital and subsequently

converted to the pre-tax equivalent discount rate.

Notes to the Financial Statements continued

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9 Goodwill and Other Intangible Assets continued

Annual impairment review continued

Following the goodwill impairment assessment, for the four Reckitt core category GCGUs/CGUs,

as at 31 December 2025 any reasonably possible change in the key valuation assumptions would

not lead to a possible impairment. The recoverable amount for each of these GCGUs/CGUs was

determined utilising the value-in-use basis, with key assumptions given below.

	Terminal	Discount rates
GCGU/CGU	growth rates	(pre-tax)
Germ Protection	2.5%	10.5%
Household Care	2.5%	10.5%
Self Care	2.0%	10.5%
Intimate Wellness	2.5%	10.5%

Following the indefinite life brands impairment assessment, for the Sexual Wellbeing CGU, as

at 31 December 2025 any reasonably possible change in the key valuation assumptions would

not lead to a possible impairment. The recoverable amount was determined utilising the

value-in-use basis, with key assumptions given below.

	Terminal	Discount rates
GCGU/CGU	growth rates	(pre-tax)
Sexual Wellbeing	2.5%	10.5%

MJN

Since the disposal of the MJN China business in September 2021, the MJN CGU has represented

the Group’s remaining MJN business principally in North America, Latin America and ASEAN.

In impairment assessments conducted in both 2021 and 2022, management determined that

the recoverable amount of MJN was higher than its carrying value such that no impairment

was required.

During 2023 the market environment for MJN continued to be influenced by the infant formula

supply shortages in the US which resulted from the temporary closure of a major factory

belonging to a competitor. The infant formula supply shortages have resulted in an evolving

regulatory environment, which developed over the course of 2023 and 2024. Compliance with

enhanced regulatory requirements is expected to increase the capital requirement for the MJN

business and to impact the cost of manufacture in future periods.

In 2023, as a result of these regulatory factors and to incorporate the effect of higher interest

rates, management increased the pre-tax discount rate used to determine the value-in-use

of the MJN CGU. This resulted in the MJN net book value exceeding its recoverable amount,

and so management recorded an impairment loss against MJN goodwill of £810 million.

During 2024, management further developed its response to the changing regulatory

environment to provide greater resilience to the supply network which included significantly

more capital expenditure and the accelerated replacement of capital equipment. This capital

investment programme over the next five years includes the delivery of replacement spray

dryer capacity.

This resulted in the MJN net book value exceeding its recoverable amount, therefore

management recorded an impairment loss against MJN goodwill of £696 million to record the

MJN CGU at its recoverable amount of £3,890 million.

In 2025, the recoverable amount for MJN has been calculated on a value-in-use basis

(2024: value-in-use basis). The value-in-use of MJN was determined utilising a discounted cash

flow approach with future cash flows derived from a detailed five-year financial plan. Cash

flows beyond the five-year plan are projected using a terminal growth rate. The valuation used

a pre-tax discount rate of 11% (2024: 11%) and an MJN-specific terminal growth rate of 2.0%

(2024: 2.0%).

The determination of the recoverable amount for MJN at 31 December 2025 incorporates certain

key assumptions, some of which are subject to considerable uncertainty. These assumptions

include, but are not limited to, the costs of complying with the evolving regulatory landscape,

execution of the capital programme, ongoing resilience risk within the supply network, net

revenue growth rates, the commercial success of new product launches and the expansion of

speciality nutrition. The value-in-use does not include any possible net cash outflows in respect

of current and future NEC litigation (Note 20).

The key assumptions used in the estimation of value-in-use of MJN are outlined below.

	2025
Pre-tax discount rate	11%
Terminal growth rate	2.0%
Net revenue compound annual growth rate (CAGR) for the period 2025-2030 1	3.3%
Gross margin CAGR for the period 2025-2030 1	3.0%

	2024
Pre-tax discount rate	11%
Terminal growth rate	2.0%
Net revenue compound annual growth rate (CAGR) for the period 2024-2029 1	3.2%
Gross margin CAGR for the period 2024-2029 1	2.7%

1 These have been determined on a constant FX basis

Notes to the Financial Statements continued

Reckitt Annual Report and Accounts 2025

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9 Goodwill and Other Intangible Assets continued

MJN continued

The key estimates incorporated within the determination of the MJN recoverable amount in 2025

are summarised below:

Key estimates	Commentary
Capital expenditure	A significant capital investment programme has commenced to meet
	regulatory requirements and to build greater resilience in the wider
	supply network.
Market	In the US, management expects birth rates to be relatively stable.
	Tendering for WIC contracts continues to be competitive.
	Within LATAM and ASEAN, management expects birth rate declines.
Net Revenue	In the short to medium term, the valuation model assumes a five-year
	CAGR of 3.3%. This is expected to be achieved through ongoing
	premiumisation, inflationary price increases and revenues from new
	products/category launches including the expansion of speciality nutrition.
Margins	In the short to medium term, the valuation model assumes MJN margins
	(both gross and operating) to increase over the medium term as MJN
	drives efficiencies and improved product mix.
Discount rate	Management determined an MJN-specific weighted average cost of
	capital (WACC) and the implied pre-tax discount rate with the support of
	a third-party expert. In addition, management performed benchmarking
	against other comparable companies. The specific risk premium reflects
	the risk associated with the delivery of the capital investment programme
	over the next five years and the continued impact of the evolving
	regulatory environment.
Terminal growth rate	Management engaged a third-party expert to help calculate an MJN-specific
	terminal growth rate. Management is satisfied with the reasonableness of the
	terminal growth rate when compared against independent market growth
	projections and long-term country inflation rates.

The table below shows the sensitivity of the recoverable amount to reasonably possible

changes in key assumptions. The table assumes no related response by management (for

example, to drive further cost savings) and is hence theoretical in nature.

	2025
	£m
Expected net revenue growth rates (2026 to 2030) adjusted by 100bps	+235/-230
Expected EBIT growth rates (2026 to 2030) adjusted by 100bps	+240/-235
Terminal growth rate (applied from 2031) adjusted by 50bps	+340/-295
Pre-tax discount rate adjusted by 50bps	+295/-265

	2024
	£m
Expected net revenue growth rates (2025 to 2029) adjusted by 100bps	+475/-460
Expected EBIT growth rates (2025 to 2029) adjusted by 100bps	+220/-215
Terminal growth rate (applied from 2030) adjusted by 50bps	+330/-280
Pre-tax discount rate adjusted by 50bps	+280/-250

The movement in the pre-tax discount rate that would be required to reach the point at which

the MJN value-in-use approximates its carrying value is a 120 bps increase.

Biofreeze

On 12 July 2021, the Group acquired 100% of the equity interests in Lanai Holdings, owner of

the Biofreeze and TheraPearl brands, for cash consideration of US$1,060 million (£766 million).

Biofreeze is a leader in over-the-counter topical pain relief, with a strong footprint in the

North America retail and clinical channels and an international presence.

During 2022, Biofreeze performed below expectations following a short-term category

slowdown, in part due to macroeconomic conditions. This underperformance, together with

the macroeconomic environment, introduced additional uncertainty into future Biofreeze cash

flows. To reflect this uncertainty, management increased the pre-tax discount rate used to

determine value-in-use to 12.0%. This resulted in the book value of the Biofreeze CGU exceeding

its recoverable amount at 31 December 2022, therefore in 2022 management recorded a

goodwill impairment of £152 million (US$184 million) to record Biofreeze at its recoverable

amount of £698 million (US$843 million). Following this impairment, at 31 December 2022

no headroom remained between the Biofreeze recoverable amount and net book value.

During the second half of 2023, the integration of Biofreeze into the Health business was

completed. Following this integration, Biofreeze goodwill is monitored at the Health GCGU level

and Biofreeze goodwill has accordingly been transferred to the Health GCGU. An impairment

review of the Biofreeze CGU inclusive of goodwill was performed immediately prior to the

transfer of the goodwill, with this review performed as at 30 September 2023. Biofreeze

goodwill was deemed recoverable immediately prior to transfer to the Health GCGU.

Notes to the Financial Statements continued

Reckitt Annual Report and Accounts 2025

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9 Goodwill and Other Intangible Assets continued

Biofreeze continued

During 2024, Biofreeze performed below expectations following a reduction in the level of

displays present in the category, competitive pressure from both private label and branded

competitors as well as new entrants to the market. This resulted in Biofreeze net book value

exceeding its recoverable amount at 31 December 2024, therefore management recorded an

impairment against the brand intangibles of £142 million (US$178 million) to record Biofreeze

at its recoverable amount of £531 million (US$664 million).

During 2025, Biofreeze continued to perform below expectations as a result of declining

short and medium term category growth rates which resulted in Biofreeze net book value

exceeding its recoverable amount at 31 December 2025, therefore management has recorded

an impairment against the brand intangibles of £175 million (US$228 million) to record Biofreeze

at its recoverable amount of £310 million (US$426 million). The recoverable amount for the

Biofreeze CGU has been determined on a value-in-use basis using a discounted cash flow

approach, with future cash flows derived from a detailed five-year plan. Cash flows beyond

the five-year plan have been projected using a terminal growth rate of 2.0% (2024: 2.5%).

The determination of the recoverable amount for Biofreeze in the 2025 impairment assessment

incorporates certain key assumptions, some of which are subject to considerable uncertainty.

These assumptions include but are not limited to anticipated market share improvement, the

commercial success of new product launches and international market expansion.

The key assumptions used in the estimation of the value-in-use of Biofreeze are outlined below:

	31 December
	2025
Pre-tax discount rate	10%
Terminal growth rate	2%
Net revenue compound annual growth rate (CAGR) for the period 2025-2030	3%
Gross margin CAGR for the period 2025-2030	3%

	31 December
	2024
Pre-tax discount rate	11%
Terminal growth rate	2.5%
Net revenue compound annual growth rate (CAGR) for the period 2024-2029	8%
Gross margin CAGR for the period 2024-2029	8%

The key estimates incorporated within the determination of the Biofreeze recoverable amount

in 2025 are summarised below:

Key estimates	Commentary
Net Revenue	In the short to medium term, the valuation model assumes a five-year
	CAGR of 3%, to be delivered through category growth and market share
	growth driven by a mix of innovation arising from format expansion of
	existing products and international expansion.
Margins	In the short to medium term, the valuation model assumes Biofreeze
	margins (both gross and operating) remain stable.
Discount rate	Management determined the Biofreeze-specific weighted average cost
	of capital (WACC) and the implied pre-tax discount rate with the support
	of a third-party expert. For valuation purposes management used the
	mid-point of the calculated range to reflect uncertainty in certain key
	assumptions.
Terminal growth rate Management is satisfied with the reasonableness of the terminal growth	rate when compared against independent market growth projections
	and long-term country inflation rates.

The table below shows the sensitivity of the recoverable amount to reasonably possible

changes in key assumptions. The table assumes no related response by management

(for example, to drive further cost savings) and hence is theoretical in nature.

	31 December
	2025
	£m
Expected net revenue growth rates (2026-2030) adjusted by 100bps	+20/-20
Expected EBIT growth rates (2026-2030) adjusted by 100bps	+20/-20
Terminal growth rate (applied from 2031) adjusted by 50bps	+30/-25
Pre-tax discount rate adjusted by 50bps	+30/-25

	31 December
	2024
	£m
Expected net revenue growth rates (2025-2029) adjusted by 100bps	+45/-40
Expected EBIT growth rates (2025-2029) adjusted by 100bps	+30/-25
Terminal growth rate (applied from 2030) adjusted by 50bps	+45/-40
Pre-tax discount rate adjusted by 50bps	+45/-40

Notes to the Financial Statements continued

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Strategic report Governance Financial statements Other information

10 Property, Plant and Equipment

	Land and	Plant and	Right of	Assets under
	buildings	equipment	use assets	construction	Total
	£m	£m	£m	£m	£m
Cost
At 1 January 2024	1,463	2,530	567	329	4,889
Additions	34	52	70	266	422
Disposals	(23)	(100)	(57)	–	(180)
Reclassifications (including held for sale)	66	196	–	(242)	20
Exchange adjustments	(35)	(63)	(16)	(5)	(119)
At 31 December 2024	1,505	2,615	564	348	5,032
Additions	43	72	78	427	620
Disposals	(60)	(292)	(76)	(13)	(441)
Reclassifications (including held for sale)	44	110	2	(157)	(1)
Exchange adjustments	(36)	(30)	(4)	(12)	(82)
At 31 December 2025	1,496	2,475	564	593	5,128
Accumulated depreciation and impairment
At 1 January 2024	595	1,628	263	4	2,490
Charge for the year	66	202	85	–	353
Disposals	(13)	(91)	(42)	–	(146)
Impairment	3	3	–	2	8
Reclassifications (including held for sale)	(1)	8	–	2	9
Exchange adjustments	(16)	(42)	(9)	–	(67)
At 31 December 2024	634	1,708	297	8	2,647
Charge for the year	64	212	80	–	356
Disposals	(42)	(239)	(53)	–	(334)
Impairment	–	1	–	–	1
Reclassifications (including held for sale)	–	(1)	1	–	–
Exchange adjustments	(19)	(21)	(6)	(4)	(50)
At 31 December 2025	637	1,660	319	4	2,620
Net book value
As at 31 December 2024	871	907	267	340	2,385
As at 31 December 2025	859	815	245	589	2,508

At 31 December 2025, the Group’s right of use assets included land and buildings of £223 million

(2024: £232 million) and other assets of £22 million (2024: £35 million). The depreciation charged

on the right of use assets comprises £65 million (2024: £71 million) on the land and buildings and

£15 million (2024: £14 million) on the other assets.

At 31 December 2025, the Group has commitments to purchase property, plant and equipment

of £148 million (2024: £70 million).

11 Equity Instruments

			2025				2024
		Fair value	Fair value			Fair value	Fair value
		through	through other			through	through other
	Equity	profit or	comprehensive		Equity	profit	comprehensive
	method	loss	income	Total	method	or loss	income	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Equity
investments	–	58	36	94	–	57	51	108
Investments in associates	68	–	–	68	–	–	–	–
	68	58	36	162	–	57	51	108

Equity investments at 31 December 2025 and 2024 are composed of a number of listed and

unlisted equity investments in which the Group has a minority stake.

In 2025, equity investments include investments of £58 million (2024: £57 million) principally in

equity mutual funds which are made in the name of the Group, but the proceeds of which are

provided to employees as part of their compensation arrangements.

On 31 December 2025, the Group completed the sale of Essential Home and retained a 30%

shareholding in Lavender Dutch TopCo B.V. Lavender Dutch TopCo B.V is not publicly listed and

its principal place of business is the Netherlands. The 30% shareholding is considered to be an

investment in an associate, measured using the equity method, with a carrying amount at 31

December 2025 of £68 million.

The Group also holds one other individually immaterial investment in associate over which it

exercises a significant influence. In 2025, there are no impairments and gains or losses

associated with this investment.

The following table summarises the preliminary financial information of Lavender Dutch TopCo

B.V. The table also reconciles the summarised financial information to the carrying amount of the

Group’s interest in the associate. A summary of the Statement of Comprehensive Income has

not been included given the total comprehensive income is £nil as the sale of Essential Home

completed on 31 December 2025.

Notes to the Financial Statements continued

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	31 December
	2025
	£m
Summarised Statement of Financial Position:
Total current assets	799
Total non-current assets	1,632
Total current liabilities	(719)
Total non-current liabilities excluding borrowings	(8)
Total borrowings	(1,989)
Net liabilities	(285)
Group’s share in %	30%
Group’s share of net liabilities	(86)
Elimination of unrealised profit	–
Implied goodwill 1	154
Carrying amount	68

1 Implied goodwill is the difference between the carrying amount of the investment in associate and the Group’s share

of Lavender Dutch TopCo B.V.’s identifiable net assets (see Note 29)

12 Deferred Tax

	Accelerated		Short-term		Retirement
	capital	Intangible	temporary		benefit
	allowances	assets	differences	Tax losses	obligations	Total
Deferred tax	£m	£m	£m	£m	£m	£m
At 1 January 2025	(83)	(3,090)	534	45	(12)	(2,606)
Credited/(charged) to the Income Statement	4	297	(91)	2	–	212
Credited/(charged) to other comprehensive income	–	–	5	–	(5)	–
Foreign exchange
recycling - other comprehensive income	–	66	–	–	–	66
Acquisitions and disposals	(1)	(24)	(10)	(2)	–	(37)
Exchange differences	8	97	(13)	(1)	(4)	87
At 31 December 2025	(72)	(2,654)	425	44	(21)	(2,278)

	Accelerated		Short-term		Retirement
	capital	Intangible	temporary	Tax	benefit
	allowances	assets	differences	losses	obligations	Total
2025	£m	£m	£m	£m	£m	£m
Deferred tax assets	24	(20)	231	43	9	287
Deferred tax liabilities	(96)	(2,634)	194	1	(30)	(2,565)
Deferred tax	(72)	(2,654)	425	44	(21)	(2,278)

	Accelerated		Short-term		Retirement
	capital	Intangible	temporary	Tax	benefit
	allowances	assets	differences	losses	obligations	Total
Deferred tax	£m	£m	£m	£m	£m	£m
At 1 January 2024	(60)	(3,121)	511	64	(6)	(2,612)
(Charged)/credited to the Income Statement	(18)	19	46	(13)	(6)	28
Charged to other comprehensive income	–	–	(5)	–	–	(5)
Exchange differences	(5)	12	(18)	(6)	–	(17)
At 31 December 2024	(83)	(3,090)	534	45	(12)	(2,606)

	Accelerated		Short-term		Retirement
	capital	Intangible	temporary	Tax	benefit
	allowances	assets	differences	losses	obligations	Total
2024	£m	£m	£m	£m	£m	£m
Deferred tax assets	18	(27)	197	44	11	243
Deferred tax liabilities	(101)	(3,063)	337	1	(23)	(2,849)
Deferred tax	(83)	(3,090)	534	45	(12)	(2,606)

Deferred tax assets and liabilities have been offset where they relate to income taxes levied by

the same taxation authority. Deferred tax on short-term temporary differences of £425 million

(2024: £534 million) comprise accrued expenses deductible for tax on a cash basis of £326 million

(2024: £362 million), other short–term temporary differences of £156 million (2024: £205 million)

and net of deferred tax liabilities on unremitted earnings of £57 million (2024: £33 million).

Unrecognised deferred tax assets

Deferred tax assets on certain corporation tax losses and other short-term temporary differences

totalling £4,622 million gross (2024: £4,738 million gross) have not been recognised at 31 December

2025 as the likelihood of future economic benefit is not sufficiently assured. These assets will be

recognised if utilisation of the losses and other temporary differences becomes probable.

Unrecognised deferred tax liabilities

The aggregate amount of gross temporary differences associated with investments in

subsidiaries, branches and associates and interest in joint ventures, for which deferred tax

liabilities have not been recognised at 31 December 2025 is £8,385 million (2024: £7,405 million).

Notes to the Financial Statements continued

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13 Inventories

	2025	2024
	£m	£m
Raw materials and consumables	339	359
Work in progress	85	87
Finished goods and goods held for resale	1,049	1,071
Total inventories	1,473	1,517

The total cost of inventories recognised as an expense and included in cost of sales amounted

to £5,326 million (2024: £5,324 million). This includes inventory write-offs and losses of

£99 million (2024: £112 million).

The Group inventory provision at 31 December 2025 was £82 million (2024: £153 million).

14 Trade and Other Receivables

		2025	2024
Amounts falling due within one year	Note	£m	£m
Trade receivables		1,580	1,783
Less: Provision for impairment of receivables		(22)	(33)
Trade receivables – net		1,558	1,750
Other receivables	14b	436	218
Prepayments and accrued income		130	123
Trade and other receivables		2,124	2,091

The carrying amounts of the Group’s trade and other receivables are denominated in the

following currencies:

	2025	2024
Currency analysis	£m	£m
US dollar	497	616
Euro	355	283
Sterling	210	169
Mexican peso	175	135
Other currencies	887	888
Trade and other receivables	2,124	2,091

The maximum exposure to credit risk at the year end is the carrying value of each class

of receivable mentioned above.

a. Trade receivables

Trade receivables consist of amounts due from customers. The Group’s customer base is large

and diverse and consequently there is limited concentration of credit risk. Credit risk is assessed

at a subsidiary and Group level and takes into account the financial positions of customers, past

experience, future expectations and other relevant factors. Individual credit limits are

established based on those factors.

The following table provides an ageing analysis of trade receivables at year end:

	2025	2024
	£m	£m
Not overdue	1,294	1,514
Up to three months overdue	239	219
Over three months overdue	47	50
Trade receivables	1,580	1,783

At 31 December 2025, a provision of £22 million (2024: £33 million) was recorded against certain

trade receivables based on a forward-looking assessment of the lifetime expected credit loss

as required by IFRS 9. This assessment considered the ageing profiles of specific trade

receivable balances along with the risk of future customer defaults.

As at 31 December 2025, trade receivables of £264 million (2024: £236 million) were past due

but not impaired. These receivables were not impaired because having considered their nature

and historical collection, recovery of the unprovided amounts is expected in due course.

b. Other receivables

Other receivables include recoverable indirect tax of £201 million (2024: £156 million), amounts

owed by related parties of £169 million (2024: £nil). See Note 27 for further details.

c. Other non-current receivables

Other non-current receivables consist of:

	2025	2024
	£m	£m
Vendor loan note	223	–
Other receivables	70	63
Prepayments	26	22
Non-current tax recoverable	24	28
Derivative financial instruments	38	17
Other non-current receivables	381	130

d. Financial instruments (Note 15)

At 31 December 2025, £2,034 million (2024: £1,853 million) of the current and non-current receivables

totalling £2,505 million (2024: £2,221 million) are financial assets. These mainly related to amounts

owed from customers or government bodies and are typically non-interest bearing. Amounts that

are not financial assets are mostly prepayments, recoverable sales tax and employee benefit assets.

Notes to the Financial Statements continued

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15 Financial Instruments and Financial Risk Management
Financial instruments by category
				At 31 December 2025 At 31 December 2024
					Fair value
			Derivatives	Fair value through other				Derivatives
		Amortised	used for	through profit	comprehensive	Carrying	Amortised
		cost	hedging	or loss	income	value total	cost
	Note	£m	£m	£m	£m	£m	£m
Assets as per the Balance Sheet
Current and non-current trade and other receivables 1	14d	1,811	–	223	–	2,034	1,853 – – – 1,853
Derivative financial instruments
FX forward exchange contracts	17	–	9	15	–	24	– 30 31 – 61
Cross currency interest rate swaps	17	–	38	–	–	38	– 17 – – 17
Equity instruments	11	–	–	58	36	94	– – 57 51 108
Cash and cash equivalents	16	1,952	–	–	–	1,952	880 – – – 880
Liabilities as per the Balance Sheet
Current and non-current trade and other payables	21	4,409	–	–	–	4,409	5,050 – – – 5,050
Share repurchase liability	24	101	–	–	–	101	477 – – – 477
Borrowings (loans, overdrafts and other non- current borrowings) 2	17	13	–	–	–	13	157 – – – 157

used for

hedging

£m

Fair value

through profit

or loss

£m

Fair value

through other

comprehensive

income

£m

Carrying

value total

£m

Lease liabilities 19 274 – – – 274 300 – – – 300

Senior notes 17 393 – – – 393 1,307 – – – 1,307

Bonds 17 7,750 – – – 7,750 6,302 – – – 6,302

Commercial paper 17 – – – – – 592 – – – 592

Derivative financial instruments

FX forward exchange contracts 17 – 17 20 – 37 – 19 19 – 38

Interest rate swaps 17 – 95 – – 95 – 158 – – 158

Cross-currency interest rate swaps 17 – 14 – – 14 – 15 – – 15

1 Included in this line is a vendor loan note receivable of £223m. At initial recognition, the Group has irrevocably designated the financial asset as measured at fair value through profit or loss given it is managed, and its performance is evaluated on a fair value

basis. The maximum exposure to credit risk at the year end is the carrying value of the financial asset

2 The categories in this disclosure are determined by IFRS 9. Lease liabilities are outside the scope of IFRS 9, but they remain within the scope of IFRS 7, and therefore have been shown separately

The fair value measurement hierarchy levels have been defined as follows:

• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)

• Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) (level 2). If all significant

inputs required to fair value an instrument are observable, the instrument is included in level 2

• Inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs) (level 3)

Notes to the Financial Statements continued

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The following table categorises the Group’s financial assets and liabilities held at fair value

by the valuation methodology applied in determining their fair value.

			At 31 December 2025				At 31 December 2024
	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Assets as per the Balance Sheet
Derivative financial
instruments
FX forward exchange
contracts	–	24	–	24	–	61	–	61
Interest rate swaps	–	–	–	–	–	–	–	–
Cross currency
interest rate swaps	–	38	–	38	–	17	–	17
Equity instruments	18	58	18	94	25	57	26	108
Vendor loan note
receivable designated
upon initial recognition
to be measured at fair value through profit
or loss	–	223	–	223	–	–	–	–
Liabilities as per the Balance Sheet
Derivative financial
instruments
FX forward exchange
contracts	–	37	–	37	–	38	–	38
Interest rate swaps	–	95	–	95	–	158	–	158
Cross-currency
interest rate swaps	–	14	–	14	–	15	–	15

The fair value of forward foreign exchange contracts was determined using forward exchange

rates derived from market-sourced data at the Balance Sheet date, with the resulting value

discounted back to present value (level 2 classification). The fair value of the interest rate swap

contracts and the cross-currency interest rate swaps was calculated using discounted future

cash flows at floating market rates (level 2 classification).

The fair value of the vendor loan note receivable was determined using discounted cash flows,

with the discount rate derived from Lavender Dutch TopCo B.V.’s cost of senior debt adjusted

for subordination using observable market data from other comparable traded debt instruments

exhibiting similar contractual terms and credit risk profiles (level 2 classification).

The fair value of equity instruments at 31 December 2025 and 31 December 2024 was

determined using quoted share price information (level 1 classification), other observable

market data (level 2 classification) and other non-market information (level 3 classification).

Except for the bonds and senior notes, the carrying values of other financial assets and

liabilities held at amortised cost approximate their fair values. The fair value of the bonds as

at 31 December 2025 is a liability of £7,751 million (2024: £6,189 million) and the fair value of the

senior notes as at 31 December 2025 is a liability of £329 million (2024: £1,191 million). The fair

value of the bonds and senior notes was derived using quoted market rates in an active market

(level 1 classification).

Offsetting financial assets and financial liabilities

The majority of the Group’s derivative agreements are entered into under International Swaps

and Derivatives Association (ISDA) master netting agreements. In certain circumstances – for

example, when a credit event such as a default occurs – all outstanding transactions under

the agreement are terminated, the termination value is assessed and only a single net amount

is payable in settlement of all transactions.

The ISDA agreements do not meet the criteria for offsetting in the Statement of Financial

Position. This is because the Group does not currently have any legally enforceable right to

offset recognised amounts, because the right to offset is enforceable only on the occurrence

of future events such as a default event.

The following table sets out the carrying amounts of recognised financial instruments that are

subject to the above agreements.

	Gross amounts of
	recognised financial	Related financial
	assets/(liabilities) in	instruments that
	the Balance Sheet	are not offset	Net amount
At 31 December 2025	£m	£m	£m
Financial assets
Derivative financial instruments	62	(20)	42
Financial liabilities
Derivative financial instruments	(146)	20	(126)

	Gross amounts of
	recognised financial	Related financial
	assets/(liabilities) in	instruments that
	the Balance Sheet	are not offset	Net amount
At 31 December 2024	£m	£m	£m
Financial assets
Derivative financial instruments	77	(31)	46
Financial liabilities
Derivative financial instruments	(211)	31	(180)

Notes to the Financial Statements continued

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15 Financial Instruments and Financial Risk Management continued

Financial risk management

The Group’s multinational operations expose it to a variety of financial risks that include the

effects of changes in foreign currency exchange rates, market prices, interest rates, credit risks

and liquidity. The Group has in place a risk management programme that uses foreign currency

financial instruments, including debt, and other instruments, to limit the impact of these risks

on the financial performance of the Group.

The Group’s financing and financial risk management activities are centralised into Group Treasury

(GT) to achieve benefits of scale and control. GT manages financial exposures of the Group centrally

in a manner consistent with underlying business risks. GT manages only those risks and flows

generated by the underlying commercial operations; speculative transactions are not undertaken.

GT also monitors conditions in the debt capital markets on an ongoing basis and may, from

time to time, seek to purchase its outstanding bonds or other debt securities through cash

purchases and/or exchanges for equity or debt, in open market purchases, privately negotiated

transactions or otherwise. Such repurchases or exchanges, if any, would be made in accordance

with applicable laws and the terms of the relevant securities, and be upon such terms and

at such prices as Group may determine, and will depend on prevailing market conditions, the

Group’s liquidity requirements, contractual restrictions, and other factors. The amounts involved

in any such transactions, individually or in aggregate, may be material.

The Board of Directors reviews and agrees policies, guidelines and authority levels for all areas

of Treasury activity and individually approves significant activities. The GT function is subject

to periodic independent reviews and audits, both internal and external.

1. Market risk

(a) Currency risk

The Group operates internationally and enters into transactions in many currencies and as such is

exposed to foreign exchange risk arising from various currency exposures. Foreign exchange risk

arises from future commercial transactions, recognised assets and liabilities and net investments

in foreign operations.

The Group’s policy is to align interest costs and operating profit of its major currencies in order

to provide some protection against the translation exposure on foreign currency profits after

tax. The Group may undertake borrowings and other hedging methods in the currencies of the

countries where most of its assets are located.

It is the Group’s policy to monitor and, where appropriate, hedge its foreign currency transaction

exposure. These transaction exposures arise mainly from foreign currency receipts and payments

for goods and services and from the remittances of foreign currency dividends and loans.

Where the Group enters into hedges and applies hedge accounting, hedges are documented

and tested for effectiveness on an ongoing basis with any ineffectiveness recorded in the

Income Statement.

The local business units enter into forward foreign exchange contracts with GT to manage these

exposures where practical and allowed by local regulations. GT matches the Group exposures, and

hedges the position where possible, using spot and forward foreign currency exchange contracts.

The Group’s strategy is to minimise Income Statement volatility by monitoring foreign currency

balances, external financing, and external hedging arrangements. The Group’s hedging profile

is regularly reviewed to ensure it is appropriate and to mitigate these risks as far as possible.

The notional principal amount of the outstanding forward foreign exchange contracts at

31 December 2025 was £6,979 million receivable (2024: £7,565 million) and £6,999 million payable

(2024: £7,546 million).

These forward foreign exchange contracts are mainly expected to mature over the period

January 2026 to December 2026 (2024: January 2025 to December 2025).

Cash flow hedging is applied with the economic relationship and expected effectiveness

being assessed at inception, with any ineffectiveness recognised in the Income Statement.

The ineffective portion recognised in the Income Statement arising from cash flow hedges

is immaterial (2024: immaterial).

Gains and losses recognised in other comprehensive income and the hedging reserve on

forward exchange contracts in 2025 of £9 million gain, net of tax (2024: £9 million gain, net

of tax), are recognised in the Income Statement in the periods in which the hedged forecast

transaction affects the Income Statement.

At 31 December 2025, the Group had forward contracts used for cash flow hedging with a total

fair value of £8 million liability (2024: £14 million asset). These contracts are denominated in a

diverse range of currency pairings, where a fluctuation of 5% in any one of the contract pairings,

with all others remaining constant, would have a maximum effect of £5 million (2024: £4 million)

on shareholder equity, until the point at which the contracts mature and the forecast transaction

occurs. The four largest contract pairings in order of nominal value were Euro/Polish zloty, British

pound sterling/Euro, Australian dollar/Euro and US dollar/Thai baht.

Where the Group is exposed to currency risk on its borrowings, the Group seeks to minimise

the impact of foreign exchange on the Income Statement through placing debt within a net

investment hedge or using financial instruments.

The net gain or loss under these arrangements is recognised in other comprehensive income.

The net effect on other comprehensive income for the period ended 31 December 2025 was

a £79 million loss (2024: £85 million gain).

In 2020, the Group issued a €850 million bond due in 2026. Concurrent with the issue of the

bond, the Group entered into a €850 million cross-currency interest rate swap on similar terms

to the 2026 bond to mitigate foreign exchange currency risk, for which hedge accounting has

been applied. Sources of ineffectiveness on this hedge relationship will come from a difference

in credit ratings between the counterparties.

In 2023, the Group issued a €650 million bond due in 2028 and a €750 million bond due in 2033.

Concurrent with the issue of these bonds, the Group also entered into a cross-currency interest

rate swap on similar terms to the 2028 bond and the 2033 bond, to mitigate foreign exchange

currency risk, for which hedge accounting has been applied. Sources of ineffectiveness on these

hedge relationships will come from a difference in credit ratings between the counterparties and

modifications to the terms of either hedged item or instrument. At 31 December 2025 no material

ineffectiveness (2024: no material ineffectiveness) has been recognised in the Income Statement.

The interest rate element of the swap is discussed in interest rate risk below.

Notes to the Financial Statements continued

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15 Financial Instruments and Financial Risk Management continued

Financial risk management continued

1. Market risk continued

(a) Currency risk continued

In 2024, the Group issued two new bonds comprising €900 million and £300 million bonds due

to expire in June 2029 and December 2032 respectively. The bonds carry fixed interest rates of

3.625% and 5.000% respectively. No hedging instruments were issued in relation to these bonds.

In 2025, the Group issued three new bonds comprising €700 million, €650 million and £250 million

bonds due to expire in September 2028, September 2034 and September 2031 respectively. The

bonds carry fixed interest rates of 2.625%, 3.5% and 4.875% respectively. The Group entered into

interest rate swaps to hedge interest rate risk on the two euro-denominated bonds, for which

hedge accounting is applied.

The gains and losses from fair value movements on derivatives held at fair value through profit

or loss, recognised in the Income Statement in 2025, was a £25 million loss (2024: £63 million

loss). These derivatives are used to hedge foreign exchange gains and losses on non-sterling

financing assets and financing liabilities between the Group’s Treasury company and fellow

Group subsidiaries.

The remaining major monetary financial instruments (liquid assets, receivables, interest and

non-interest-bearing liabilities) are either denominated in the functional currency of the Group

or the functional currency of the local entity.

(b) Cost inflation risk

Due to the nature of its business the Group is exposed to commodity, freight and other inflation

risks. Short-term volatility in pricing of these products is mitigated through medium-term

contracts, inventories of key materials and financial hedging. Over the medium and long term,

the Group mitigates the impact of inflation through: implementing pricing and revenue growth

management; identifying productivity and efficiency opportunities; and improving sales mix.

The Group has both interest-bearing and non-interest bearing assets and liabilities. The Group

monitors its interest income and expense rate exposure on a regular basis. The Group sets its

desired level of fixed and floating rate exposure as part of its interest risk management strategy.

The mix of fixed and floating exposure on interest-bearing assets or liabilities is managed by

using a mixture of fixed and floating rate deposits, borrowings and interest rate derivatives.

In 2020 the Group issued two €850 million bonds due in 2026 and 2030. In order to maintain a

level of floating rate debt in line with the Group’s interest management strategy the Group

entered into an €850 million cross-currency interest rate swap on similar terms to the 2026 bond

and an interest rate swap on the coupon payments due on the 2030 bond. The accounting for

the foreign exchange element of the cross-currency swap is described above. The interest rate

element swaps the fixed coupon payments on the bond for floating rate (the cross-currency

interest rate swap with reference to adjusted reference rates following GBP LIBOR cessation,

and the interest rate swap with reference to EURIBOR). The interest rate swaps have been

placed into a fair value hedge relationship with the related bonds.

During 2023, the Group entered into a £747 million nominal value floating-to-fixed interest rate

swap due in 2026 to reduce the level of exposure to floating interest rates. This interest rate

swap has been designated as a cash flow hedge against the payments made on the floating

leg of the Group’s existing cross-currency interest rate swap. Sources of ineffectiveness on

this hedge relationship may come from modifications to the terms of either the hedged item

or the hedging instrument. At 31 December 2025, no material ineffectiveness has been included

in the income statement (2024: no material ineffectiveness).

In 2023 the Group issued a €650 million bond due in 2028 and a €750 million bond due in 2033.

In order to maintain a level of fixed or floating rate debt in line with the Group’s interest

management strategy the Group entered into €650 million of cross-currency interest rate swaps

on similar terms to the 2028 bond and €750 million cross-currency interest rate swaps on similar

terms to the 2033 bond. The accounting for the foreign exchange and interest rate element of

the cross-currency swaps has been described above.

On the €650 million bond due in 2028, the cross-currency interest rate swaps the fixed euro

coupon payments on the bond for fixed GBP payments. On the €750 million bond due in 2033, the

cross-currency interest rate swap swaps the fixed euro coupon payments on the bond for a GBP

floating rate (with reference to SONIA) payments. The €650 million cross-currency interest rate

swap has been placed into a cash flow hedge relationship with the bond due in 2028, and the

€750 million has been placed into a fair value hedge relationship with the bond due in 2033.

Sources of ineffectiveness on this hedge relationship may come from modifications to the

terms of either the hedged item or the hedging instrument. At 31 December 2025, no material

ineffectiveness has been included in the income statement (2024: no material ineffectiveness).

In 2025, the Group issued a fixed rate €650 million bond maturing in 2034 and a fixed rate

€700 million bond maturing in 2028. To align the overall mix of fixed and floating rate debt with

the Group’s interest rate risk management strategy, the Group entered into interest rate swap

agreements of €650 million and €700 million, respectively. This results in the fixed euro coupon

payments of both bonds being swapped for a euro floating rate (EURIBOR). The terms of these

swaps are structured to match the critical terms of the bonds issued in 2025. Both swaps have

been placed into fair value hedge relationships with the respective bonds. Sources of

ineffectiveness on this hedge relationship may come from modifications to the terms of either

the hedged item or the hedging instrument. At 31 December 2025, no material ineffectiveness

has been included in the income statement (2024: no material ineffectiveness).

Various scenarios are simulated taking into consideration refinancing, renewal of existing

positions, alternative financing and hedging. Based on these scenarios, the Group calculates the

impact on the Income Statement of a defined interest rate shift. For each simulation, the same

interest rate shift is used for all currencies, calculated on a full year and pre-tax basis.

The scenarios are only run for liabilities that represent the major interest-bearing positions.

Based on the simulations performed, the impact on the Income Statement of a 50 bps shift

in interest rates would be a maximum increase of £17 million (2024: £10 million) or decrease

of £17 million (2024: £10 million), respectively for the liabilities covered. The simulation is done

on a periodic basis to verify that the maximum loss simulated is within the limit given by

management. There is also an impact on the Income Statement of a 50 bps shift of £4 million

(2024: £4 million) on an asset that is inherently linked to a liability included above, resulting

in a net impact of £13 million.

Notes to the Financial Statements continued

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15 Financial Instruments and Financial Risk Management continued

Financial risk management continued

2. Credit risk

The Group has no significant concentrations of credit risk. Credit risk arises from cash and cash

equivalents, derivative financial instruments and deposits with banks and financial institutions,

as well as credit exposures to customers. The assessment of lifetime expected credit losses

relating to trade and other receivables is detailed in Note 14. Financial institution counterparties

are subject to approval under the Group’s counterparty risk policy and such approval is limited

to financial institutions with a BBB rating or above. The Group uses BBB and higher rated

counterparties to manage risk and only uses sub-BBB rated counterparties by exception.

The amount of exposure to any individual counterparty is subject to a limit defined within the

counterparty risk policy, which is reassessed annually by the Board of Directors. Derivative

financial instruments are only traded with counterparties approved in accordance with the

approved policy. Derivative risk is measured using a risk weighting method.

The Group has counterparty risk from asset positions held with financial institutions. This

comprises of short-term investments, cash and cash equivalents and derivative positions. For

risk management purposes the Group assesses the exposure to major financial institutions by

looking at the deposits, cash and cash equivalents and a percentage of the nominal amount

of derivative contracts taking into account the time to maturity and the nature of the product.

The following table summarises the Group’s assessment of its exposure.

	2025		2024
	Limit	Exposure	Limit	Exposure
Credit ratings	£m 1	£m	£m	£m
AAA+ to AAA-	5,815	987	3,156	26
AA+ to AA-	825	262	550	196
A+ to A-	4,050	1,155	3,750	1,118
BBB+ and below	5	–	205	116

1 The year-on-year increase in credit limits mainly reflects a temporary uplift approved by the Board to accommodate the

proceeds from the Essential Home disposal and the subsequent investment of cash prior to its return to shareholders

3. Liquidity risk

Liquidity risk is the risk that the Group cannot repay financial liabilities as and when they fall due.

The Group’s liquidity risk is concentrated towards bond and senior note principal repayments

due between 2025 and 2044.

The Group has various borrowing facilities available to it. The Group has bilateral credit facilities

provided by high-quality international banks which include a financial covenant and is not

expected to restrict the Group’s future operations.

At the end of 2025, the Group had long-term debt excluding lease liabilities of £7,411 million

(2024: £7,014 million), of which £5,552 million (2024: £6,325 million) is repayable in more than

two years. In addition, the Group has committed borrowing facilities totalling £4,400 million

(2024: £4,450 million), of which £4,400 million (2024: £3,500 million) expires after more than

two years. The committed borrowing facilities, together with central cash and investments,

are considered sufficient to meet the Group’s projected cash requirements.

All borrowing facilities are at floating rates of interest.

The facilities have been arranged to cover general corporate purposes, including support for

commercial paper issuance. All facilities incur commitment fees at market rates.

The Group’s borrowing limit at 31 December 2025 calculated in accordance with the Articles

of Association was £23,238 million (2024: £20,097 million).

The following tables analyse the Group’s financial liabilities and derivatives which will be settled

on a net basis into relevant maturity groupings based on the remaining period between the

Balance Sheet date and the contractual maturity date. The amounts disclosed in the table are

the contractual undiscounted cash flows which have been calculated using spot rates and

interest rates at the relevant Balance Sheet date, including interest to be paid.

		Less than	Between	Between	Over
	Total	1 year	1 and 2 years	2 and 5 years	5 years
At 31 December 2025	£m	£m	£m	£m	£m
Bonds	(9,046)	(968)	(2,052)	(3,106)	(2,920)
Commercial paper	–	–	–	–	–
Senior notes	(686)	(17)	(17)	(51)	(601)
Other financial liabilities	(4,422)	(4,338)	(78)	–	(6)
Share repurchase liability	(101)	(101)	–	–	–

		Less than	Between	Between	Over
	Total	1 year	1 and 2 years	2 and 5 years	5 years
At 31 December 2024	£m	£m	£m	£m	£m
Bonds	(7,450)	(179)	(882)	(3,640)	(2,749)
Commercial paper	(594)	(594)	–	–	–
Senior notes	(1,834)	(656)	(33)	(98)	(1,047)
Other financial liabilities	(5,207)	(5,118)	(89)	–	–
Share repurchase liability	(477)	(477)	–	–	–

Notes to the Financial Statements continued

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15 Financial Instruments and Financial Risk Management continued

Financial risk management continued

3. Liquidity risk continued

The table below analyses the Group’s derivative financial instruments which will be settled

on a gross basis into relevant maturity groupings based on the remaining period between

the Balance Sheet date and the contractual maturity date. The amounts disclosed in the table

are the contractual undiscounted cash flows which have been calculated using spot rates at

the relevant Balance Sheet date.

	Less than	Between	Between	Over
	1 year	1 and 2 years	2 and 5 years	5 years
At 31 December 2025	£m	£m	£m	£m
FX forward exchange contracts
Outflow	(6,999)	–	–	–
Inflow	6,979	–	–	–
Cross-currency interest rate swaps
Outflow	(826)	(61)	(677)	(724)
Inflow	790	46	663	730
Interest rate swaps
Outflow	(70)	(56)	(124)	(68)
Inflow	55	41	92	79

	Less than	Between	Between	Over
	1 year	1 and 2 years	2 and 5 years	5 years
At 31 December 2024	£m	£m	£m	£m
FX forward exchange contracts
Outflow	(7,527)	(19)	–	–
Inflow	7,546	19	–	–
Cross-currency interest rate swaps
Outflow	(111)	(88)	(1,472)	(776)
Inflow	46	46	1,352	717
Interest rate swaps
Outflow	(58)	(43)	(86)	(14)
Inflow	40	22	16	5

Cash flow forecasting is performed by the local business units and on an aggregated basis by

GT. GT monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient

cash to meet operational needs while maintaining sufficient headroom on its undrawn

committed borrowing facilities. Funds over and above those required for short-term working

capital purposes by the local businesses are generally remitted to GT. The Group uses the

remittances to settle obligations, repay borrowings or, in the event of a surplus, invest in

short-term instruments issued by institutions with a BBB rating or above.

4. Capital management

		2025	2024
	Note	£m	£m
Cash and cash equivalents including overdrafts		1,952	879
Financing liabilities	17	(8,510)	(8,793)
Net debt		6,558	7,914
Total equity		7,781	6,720
		14,339	14,634

The Group considers capital to be net debt plus total equity. Net debt is calculated as total

financing liabilities less cash and cash equivalents and short-term deposits. Total equity

includes share capital, reserves and retained earnings as shown in the Group Balance Sheet.

The objectives for managing capital are to safeguard the Group’s ability to continue as a going

concern, in order to provide returns for shareholders and benefits for other stakeholders and

to maintain an efficient capital structure to optimise the cost of capital.

In 2025, the Group provided returns to shareholders in the form of dividends and through buying

back shares. Refer to Note 24 for further details.

The Group monitors net debt which at year end was £6,558 million (2024: £7,914 million). In 2023 the

Group began a share buyback programme, which is still ongoing, in line with the Group’s capital

allocation policy of returning surplus cash to shareholders.

Supply chain finance

The Group participates in a supply chain finance (SCF) programme under which certain suppliers

to the Group are able to access an SCF arrangement that enables them to fund their working

capital. The principal purpose of this programme is to facilitate efficient payment processing

and enable the willing suppliers to sell their receivables due from the Group to a bank before

their due date. The Group does not incur any additional interest towards the bank on the

amounts due to the suppliers.

The balance payable is recorded within trade payables on the Balance Sheet and all cash flows

associated with the programme are included within operating cash flows as they continue to be

part of the normal operating cycle of the Group and their principal nature remains operating,

being payments for the purchase of goods and services. Security or guarantees have not been

provided by Group.

Notes to the Financial Statements continued

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Strategic report Governance Financial statements Other information

Notes to the Financial Statements continued

15 Financial Instruments and Financial Risk Management continued

Supply chain finance continued

	2025	2024
	£m	£m
Carrying amount of financial liabilities
Presented in trade and other payables	277	437
– of which suppliers have received payment from finance provider	241	347
Range of payment due dates (goods and freight providers) 1
Liabilities that are part		Cost of inventories: 45 days to 225 days (2024: 90 days to 210 days)
of the arrangements		Freight: 120 days to 210 days (2024: 60 days to 210 days)
		Net operating expenses: 120 days to 180 days (2024: 30 days to
		210 days)
Comparable trade		Cost of inventories: 0 days to 210 days (2024: 30 days to 180 days)
payables that are not part		Freight: 7 days to 180 days (2024: 30 days to 150 days)
of the arrangements 1		Net operating expenses: 0 days to 180 days (2024: 0 days to 150 days)
Non-cash changes
There were no material business combinations or foreign exchange differences in either period.
There were non-cash transfers from trade payables to finance payables of £nil in 2025.

1 Comparable payables have been identified based on the type of product supplied and legal entity who purchases the

goods or services

16 Cash and Cash Equivalents

The Group operates in a number of territories where there are either foreign currency exchange

restrictions or it is difficult for the Group to extract cash readily and easily in the short term. As a

result, £182 million (2024: £120 million) of cash included in cash and cash equivalents is restricted

for use by the Group, yet available for use in the relevant subsidiary’s day-to-day operations.

	2025	2024
	£m	£m
Cash at bank and in hand	557	504
Short-term bank deposits	408	350
Money market fund investments	987	26
Cash and cash equivalents	1,952	880

17 Financial Liabilities – Borrowings

		2025	2024
	Note	£m	£m
Current
Bank loans and overdrafts 1		7	148
Commercial paper		–	592
Bonds		738	–
Senior notes		–	604
Lease liabilities	19	65	79
Total short-term borrowings		810	1,423
Non-current
Bonds		7,012	6,302
Senior notes		393	703
Other non-current borrowings		6	9
Lease liabilities	19	209	221
Total long-term borrowings		7,620	7,235
Total borrowings		8,430	8,658
Derivative financial instruments – as shown below Less overdrafts presented in cash and cash equivalents		80	136
in the Cash Flow Statement		–	(1)
Total financing liabilities		8,510	8,793

1 Bank loans are denominated in a number of currencies: all are unsecured and bear interest based on short-term market

interest rates

The Group uses derivative financial instruments to hedge certain elements of interest rate and

exchange rate risk on its financing liabilities. The split between these items and other derivatives

on the Balance Sheet is shown below:

		Assets		Liabilities
2025 (£m)	Current	Non-current 1	Current	Non-current 2
Derivative financial instruments
(financingliabilities)	15	33	(33)	(95)
Derivative financial instruments
(non-financing liabilities)	9	5	(18)	–
At 31 December 2025	24	38	(51)	(95)

1 Included within other non-current receivables on the Balance Sheet

2 Included within other non-current liabilities on the Balance Sheet

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17 Financial Liabilities – Borrowings continued

	Assets			Liabilities
2024 (£m)	Current	Non-current 1	Current	Non-current 2
Derivative financial instruments (financingliabilities)	32	14	(25)	(157)
Derivative financial instruments
(non-financing liabilities)	29	3	(13)	(16)
At 31 December 2024	61	17	(38)	(173)

1 Included within other non-current receivables on the Balance Sheet

2 Included within other non-current liabilities on the Balance Sheet

	2025	2024
Reconciliation of movement in financing liabilities to the Cash Flow Statement	£m	£m
At 1 January	8,793	8,670
Proceeds from borrowings	1,412	1,768
Repayment of borrowings	(1,637)	(1,687)
Other financing cash flows	40	(47)
Total financing cash flows	(185)	34
New lease liabilities	71	70
Exchange, fair value and other movements	(161)	19
Divestment of leases	(8)	–
Total non-cash financing items	(98)	89
At 31 December	8,510	8,793

	2025	2024
Maturity of borrowings (excluding lease liabilities)	£m	£m
Bank loans and overdrafts repayable:
Within one year or on demand	7	148
Other borrowings repayable:
Within one year:
Commercial paper	–	592
Bonds	738	–
Senior notes	–	604
After one year and in less than five years:
Bonds	4,460	3,949
Senior notes	–	–
After five years or longer:
Bonds	2,552	2,353
Senior notes	393	703
Other non-current borrowings	6	9
	8,149	8,210
Gross borrowings (unsecured)	8,156	8,358

18 Provisions for Liabilities and Charges

	Legal	Other	Total
	provisions	provisions	provisions
	£m	£m	£m
At 1 January 2024	137	62	199
Charged to the Income Statement	23	18	41
Utilised during the year	(7)	–	(7)
Released to the Income Statement	(36)	(17)	(53)
Reclassification	–	–	–
Exchange adjustments	(5)	(1)	(6)
At 31 December 2024	112	62	174
Charged to the Income Statement	12	16	28
Utilised during the year	(5)	(6)	(11)
Released to the Income Statement	(7)	(19)	(26)
Reclassification 1	–	(8)	(8)
Divestment	–	(7)	(7)
Exchange adjustments	(4)	(1)	(5)
At 31 December 2025	108	37	145

Provisions have been analysed between current and non-current as follows:

	2025	2024
	£m	£m
Current	90	112
Non-current	55	62
Total	145	174

1 Relates to reclassifications to other payables accounts

Provisions are recognised when the Group has a present or constructive obligation as a result

of past events, it is more likely than not that there will be an outflow of resources to settle

that obligation, and the amount can be reliably estimated. As at 31 December 2025, the Group

recognised legal provisions of £108 million (2024: £112 million) in relation to a number of historical

regulatory and other matters in various jurisdictions.

These provisions relate to matters where the Group is currently involved with, or potentially will be

involved in, litigation. The provision represents the Group’s best estimate of the likely settlement.

Due to the uncertain nature of the resolution of a majority of these matters, £75 million (2024: £82

million) is recorded as a current provision as it is possible the matters could be settled in the next

12 months; however, it is possible that they may not be. Legal provisions include £33 million (2024:

£30 million) relating to the Humidifier Sanitiser (HS) issue in Korea (see Note 20).

Other provisions include environmental and other obligations throughout the Group, the majority

of which are expected to be utilised within five years.

Notes to the Financial Statements continued

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Strategic report Governance Financial statements Other information

19 Lease Liabilities

	2025	2024
Maturity analysis – contractual undiscounted cash flows	£m	£m
Within one year	67	87
Later than one and less than five years	170	172
After five years	83	99
Total undiscounted lease liabilities at 31 December	320	358
Lease liabilities included in the Statement of Financial Position
at 31 December	274	300
Current	65	79
Non-current	209	221

Interest charged on lease liabilities amounted to £13 million (2024: £13 million).

20 Contingent Liabilities and Assets

Humidifier Sanitiser issue

The Humidifier Sanitiser (HS) issue in South Korea was a tragic event. The Group continues to

make both public and personal apologies to the victims who have suffered lung injury as a result

of the Oxy HS product and the role that the Oxy HS product played in the issue.

As previously reported, the South Korean government had designated a number of diseases

as HS injuries, in addition to the HS lung injury for which Reckitt Korea’s CP was established.

These include asthma, toxic hepatitis, child interstitial lung disease (ILD), bronchitis, upper airway

disease, pneumonia, skin disease (accompanied by respiratory injuries) and depression

(accompanied by respiratory injuries).

The Korean National Assembly passed a bill on 6 March 2020 to amend the HS law with the main

changes in the amendment relating to: (i) the definition of HS injury (essentially allowing the MOE

to recognise a variety of disease as IRF injury based on individual review of each IRF application);

(ii) the legal presumption of causation (shifting the burden of proof for causation to the

defendant if the plaintiff demonstrates ‘epidemiological correlation’ between HS exposure and

their injury); and (iii) amendments to the fund set up by the government and funded by the

government and HS companies (the Special Relief Fund (SRF), now called the Injury Relief Fund

(IRF)) to provide expanded support payments to HS victims which would cover all elements of

court awarded damages except mental distress, aside from KRW 134 million consolation

payments for death cases, and partial lost income.

On 24 December 2025 a Bill proposing amendment to the current HS special law was introduced

to the National Assembly. The Bill proposes a number of changes, including a new compensation

system to replace the IRF. At this stage the Bill is still in review and we are unable to provide a

reliable estimate on the potential impact to Reckitt Korea.

The Group currently has a provision of £33 million (2024: £30 million) in relation to the HS issue in

South Korea. In addition, there are further potential costs that are not considered probable and

cannot be reliably estimated at the current time. The impact of the existing HS law amendments

will require further monitoring and analysis, in particular those which will be subject to court

interpretation, such as the new epidemiological correlation standard, any limitation applied by

courts to damage awards, the interest rate applied by individual courts to damage awards and

external factors such as the rate of future IRF applications/recognitions. Accordingly, it is not

possible to make any reliable estimate of liability for individuals recognised by the government

as having HS injuries.

Necrotizing Enterocolitis (NEC)

Product liability actions relating to NEC have been filed against certain Group subsidiary

companies, or against certain Group subsidiary companies and Abbott Laboratories, in state and

federal courts in the United States. The actions allege injuries relating to NEC in preterm infants.

Plaintiffs contend that human milk fortifiers (HMF) and preterm formulas containing bovine-

derived ingredients cause NEC, and that preterm infants should receive a diet of exclusively

breast milk. The Company has denied the material allegations of the claims. It contends that

its products provide critical tools to expert neonatologists for the nutritional management

of preterm infants for whom human milk, by itself, is not available or nutritionally sufficient.

The products are used under the supervision of medical doctors.

Any potential costs relating to the product liability actions are not considered probable and

cannot be reliably estimated at the current time. Given the uncertainty on the number of cases

and range of possible outcomes on each case, the possible economic outflow cannot be reliably

estimated, but may be significant.

Currently, there are two state court trials scheduled, both involving a single plaintiff. The first

is in St. Louis, Missouri, with a June 2026 trial date, and the second in Las Vegas, Nevada, with

a November 2027 trial date. Mead Johnson’s first federal court trial in the MDL is scheduled for

July 2026. However, dates are subject to change and additional trials could be scheduled.

In June 2025, a putative class action securities fraud lawsuit was filed in the US District Court for

the Southern District of New York against Reckitt Benckiser Group plc and several current and

former executives, which alleges that the Company and the named individuals failed to warn

investors and consumers that preterm infants were at an increased risk of developing NEC from

consuming the Company’s cow’s milk-based formula products and of the attendant impact

on sales of Enfamil and the Company’s exposure to legal claims, and that as a result there was

allegedly a decline in the market value of the Company’s stock shares causing losses to the class

members. We intend to vigorously defend against these allegations. Any possible economic

outflow is not considered probable and cannot be reliably estimated at the current time.

Whitfield case

On 31 October 2024, a state court jury in the city of St. Louis, Missouri, ruled in favour of Mead

Johnson. The case involved a child who was born prematurely, developed NEC and has allegedly

experienced subsequent long term health issues. Given the verdict, an economic outflow is not

considered probable. In March 2025, the court granted the plaintiff’s post-trial motion and

ordered a new trial. Mead Johnson is appealing that ruling.

Notes to the Financial Statements continued

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20 Contingent Liabilities and Assets continued

Watson Case

On 13 March 2024, a state court jury in Belleville, Illinois, awarded US$60 million to the mother of

a child who was born prematurely and died 25 days later from Necrotizing Enterocolitis (NEC).

Mead Johnson believes the allegations from the plaintiff’s lawyers in this case were not

supported by the science or the experts in the medical community. Mead Johnson is appealing

the verdict, and at this time, an economic outflow is not considered probable.

There is a possible outcome that may be unfavourable; however, the Group expects to benefit

from relevant product liability insurance subject to limits and deductibles that the Group

considers to be reasonable.

Phenylephrine

Starting in September 2023, putative class action lawsuits have been filed against the Group

and competitor companies in various United States jurisdictions that generally allege that

the defendants made misrepresentations about the effectiveness of products containing

Phenylephrine. In December 2023, the Judicial Panel on Multidistrict Litigation (JPML) transferred

all pending federal court cases and any similar, subsequently filed cases to a coordinated

multi-district litigation (MDL) in the Eastern District of New York for pre-trial purposes. In

October 2024, a motion to dismiss the lawsuits was granted, dismissing all claims. The plaintiffs

are appealing that ruling. Potential costs relating to these actions are not considered probable

and cannot be reliably estimated at the current time.

UK Securities Action

In June 2025, the Supreme Court of the United Kingdom declined to hear an appeal against

a High Court decision, which had been upheld by the Court of Appeal of England and Wales,

striking out a representative action in civil proceedings brought by shareholders against the

Company under s90A of FSMA 2000, in which it was alleged that the Company failed to give

adequate disclosure of matters that were the subject of the Company’s 2019 settlement of

a US Department of Justice investigation into Suboxone (the Representative Proceeding).

As a result, the Representative Proceeding has now concluded.

Similar civil proceedings were also issued in the form of a multi-party action where all the

claimants are named parties to the proceedings (the Multi-Party Proceedings), which had been

stayed whilst the Company litigated the Representative Proceeding. When the Supreme Court

declined to hear the appeal in respect of the Representative Proceeding in June 2025, ending

those proceedings, the stay on the Multi-Party Proceedings automatically lifted, and the

Company was then served with the Multi-Party Proceedings. The Company intends to vigorously

defend the claims advanced in the Multi-Party Proceedings; however, the proceedings are

subject to numerous uncertainties, and as such, the Company cannot make any reliable

assessment of outcomes.

Other

From time to time, the Group is involved in discussions in relation to ongoing tax matters in

a number of jurisdictions around the world. Where appropriate, the Directors make provisions

based on their assessment of each case (see Note 22).

21 Trade and Other Payables

	2025	2024
	£m	£m
Trade payables	2,127	2,268
Other payables 1	309	151
Forward share purchase liability 2	191	133
Other tax and social security payable	185	161
Interest accrued on tax balances	115	101
Indemnity provisions for disposed businesses	6	47
Accruals	2,139	2,430
Trade and other payables	5,072	5,291

1 Includes amounts owed by related party (see Note 27)

2 Relates to an agreement signed in May 2023 to acquire the remaining interests associated with the Company’s majority

owned activities in mainland China and Hong Kong (RB Manon) from its existing minority shareholders

Included within accruals is £921 million (2024: £1,074 million) in respect of amounts payable to

trade customers and government bodies for trade spend.

Other non-current liabilities

	2025	2024
	£m	£m
US employee-related payables	58	57
Indemnity provisions for disposed businesses	–	2
Other	27	22
Other non-current liabilities	85	81

Financial instruments (Note 15)

At 31 December 2025, £4,409 million (2024: £5,050 million) of the current and non-current trade

and other payables totalling £5,157 million (2024: £5,372 million) are financial liabilities. These

mainly relate to amounts owed to suppliers in respect of goods or services and are typically

non-interest bearing. Amounts that are not financial instruments comprise employee-related

liabilities, social security liabilities and accrued interest.

Notes to the Financial Statements continued

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Strategic report Governance Financial statements Other information

22 Uncertain tax positions

	2025	2024
	£m	£m
Uncertain tax positions offset against current tax assets	290	116
Uncertain tax positions reported in current tax liabilities	314	595
Total uncertain tax positions	604	711

Certain tax positions taken by us are based on industry practice, tax advice and drawing

similarities from our facts and circumstances to those in case law. In particular, international

transfer pricing is an area of taxation that depends heavily on the underlying facts and

circumstances and generally involves a significant degree of judgement.

Tax assets and liabilities are offset where there is a legally enforceable right to do so. £231

million (2024: £368 million) relates to uncertain tax positions recognised using the most likely

outcome method, where the resolution of the uncertainty is concentrated on one binary

outcome. There is one uncertain tax position of £187m relating to discontinued operations that

is calculated with this method and is material to the Financial Statements.

£373 million (2024: £343 million) relates to amounts recognised using the expected value

method. The liabilities calculated using this method are not material in isolation, are individually

assessed and cover multiple jurisdictions and issues. Therefore, it is not meaningful to provide

aggregated sensitivity estimates. The sources of estimation uncertainty underlying this amount

are shown in Note 1.

The recognition of uncertain tax positions is reviewed regularly for changes in circumstances

and estimates are updated as potential resolutions for the tax uncertainties are encountered

through specific audits or wider case law. As a result, given the size, possible range of outcomes

and timing of resolution, there is a significant risk of material adjustment to the aggregate

carrying amount of these liabilities within the next financial year.

The disputes underlying the liability recognised in respect of uncertain tax positions may

take several years to resolve (see Note 1). Notwithstanding this, the carrying liability amount

of £314 million (2024: £595 million) has been presented as a current liability. The associated

interest accrued on uncertain tax positions of £115 million (2024: £101 million) is also presented

as a current liability.

23 Pension and Post-Retirement Commitments

Plan details

The Group operates a number of defined benefit and defined contribution pension plans around

the world covering many of its employees. The majority of these plans are funded. The Group’s

most significant pension plan (UK) is set up under trust and is a separate entity from the Group.

The defined benefits section of this plan closed to accrual from 31 December 2017. Members

have a normal retirement age of 65. The majority of the Trustees of the plan are appointed by

the Group with the remaining Trustees appointed by the membership in line with the Trustees

Member Nominated Trustee policy. The Trustees are responsible for the governance of the plan,

including paying all administrative costs of the defined benefit section and compliance with

regulations. The defined benefit section of the plan is funded by the payment of contributions

as required, following each triennial valuation. The principal UK plan also had a defined

contribution section which was closed on 31 March 2024; from that date, UK employees were

moved into a separate master trust arrangement and their funds within the defined contribution

section were transferred over to the master trust in July 2024.

For the principal UK plan, a full independent actuarial valuation is carried out on a triennial basis.

As the plan was in surplus on its technical provisions funding basis at the 5 April 2022 actuarial

valuation, no contributions were required to be paid by the Group in 2025. The preliminary

results of the 5 April 2025 actuarial valuation indicate the plan remains in surplus on its technical

provisions funding basis and therefore no contributions are expected to be required in 2026.

Funding levels are monitored on an annual basis.

Following UK High Court rulings clarifying the requirements to equalise the Guaranteed

Minimum Pension element of benefits for men and women within the UK Pension schemes from

Guaranteed Minimum Pension accrued from post 17 May 1990 pensionable service, a method

has been agreed with the pension trustees from all defined benefit schemes in the UK. Benefit

changes and back payments have been made to members of the two smaller UK schemes, with

work continuing on the other schemes to calculate the required adjustments to benefits.

The Group also operates a number of other post-retirement plans in certain countries. The two

major plans are the US Retiree Health Care Plan and the Mead Johnson & Company, LLC Medical

Plan (together, the US (Medical) plans). In the US Retiree Health Care Plan, salaried participants

become eligible for retiree healthcare benefits after they reach a combined ‘age and years of

service rendered’ figure of 70, although the age must be a minimum of 55. This plan closed to

new members in 2009. In the Mead Johnson & Company, LLC Medical Plan, acquired as part of

the acquisition of MJN on 15 June 2017, participants become eligible for retiree healthcare

benefits if they leave employment after the age of 65, leave after the age of 55 and have

completed 10 years of service, or have their employment involuntarily terminated after the age

of 55. A Benefits Committee is appointed by the Group for both of these plans, responsible for

the governance of the US plans, including paying all administrative costs and compliance with

regulations. Both of these plans are unfunded.

For the US (Medical) plans, a full independent actuarial valuation is carried out on an annual basis.

The most recent valuation was carried out on 1 January 2025. For both of these plans, funding

levels are monitored on an annual basis with contributions made equal to the claims made each

year. It is expected that the combined contributions in 2026 will be £7 million (2025: £6 million).

For the purpose of IAS 19, the projected unit valuation method was used for the UK and US plans,

as per the principal UK plan’s preliminary triennial valuation results (at 5 April 2025) and the US

(Medical) plan annual valuations to 31 December 2024.

For the UK plans, the weighted average duration of the deferred benefit obligation is 10.8 years

(2024: 11.3 years). The decrease from the prior year has been driven by the ageing population

and (for the largest plan) changes in demographic assumptions, offset to some extent by

changes in bond yields.

Notes to the Financial Statements continued

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23 Pension and Post-Retirement Commitments continued

Significant actuarial assumptions

The significant actuarial assumptions used in determining the Group’s defined benefit obligation

for the UK and US (Medical) plans as at 31 December were:

	2025		2024
	UK	US (Medical)	UK	US (Medical)
	%	%	%	%
Rate of increase in pensionable salaries	N/A	–	N/A	–
Rate of increase in deferred pensions
during deferment	2.6	–	2.9	–
Rate of increase in pension payments	2.7	–	3.2	–
Discount rate	5.5	5.2	5.6	5.4
Inflation assumption – RPI	2.9	–	3.3	–
Annual medical cost inflation	–	5.0-8.0	–	5.0-7.0

Assumptions regarding future mortality experience are set in accordance with published

statistics and experience in each territory. The expected lifetime of a participant aged 60 and

the expected lifetime of a participant who will be aged 60 in 15 years (20 years in the US) are

detailed below:

	2025		2024
	UK years	US years	UK years	US years
Number of years a current pensioner
is expected to live beyond 60:
Male	26.2	25.2	27.0	25.1
Female	27.6	27.4	28.6	27.3
Number of years a future pensioner
is expected to live beyond 60:
Male	27.5	26.9	28.3	26.8
Female	29.0	29.0	29.9	28.9

For the principal UK plan, the mortality assumptions were based on the standard SAPS mortality

table 4NMA (middle) for males (scaled by 105%) and table 4NFA (heavy) for females (scaled by

115%). Allowance is made for future improvements in mortality by adopting the CMI’s published

2024 improvement tables with a long-term improvement trend of 1.5% per annum from 2017

onwards, an initial addition to mortality improvements of 0.25% pa, the default half-life

parameter and core period smoothing parameter, reflecting a ‘fitted overlay’ instead of the

‘weight’ parameters used in CMI_2020 to CMI_2023. Instead of a smoothed projection which

ignores the peaks of mortality in 2020 and 2021, and the need to subjectively allocate weights to

data in recent years, the new overlay recognises the increase in mortality rates in 2020, and the

return to a more normal pattern of mortality over subsequent years. For the US plan the mortality

assumptions were determined using the Pri-2012 Total Dataset and projected with Mortality

Improvement Scale MP-2021.

Amounts recognised on the Balance Sheet

The amounts recognised on the Balance Sheet are as follows:

	2025	2024
	£m	£m
Balance Sheet liability for:
US (Medical)	(56)	(64)
Other	(161)	(171)
Liability on Balance Sheet	(217)	(235)
Balance Sheet assets for:
UK	223	214
Other	61	55
Asset on Balance Sheet	284	269
Net pension asset	67	34

Notes to the Financial Statements continued

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23 Pension and Post-Retirement Commitments continued

Amounts recognised on the Balance Sheet continued

The UK surplus of £223 million (2024: £214 million) relates mainly to the Reckitt Benckiser Pension

Fund. This surplus has been recognised as the Group has concluded it has an unconditional right

to a refund of any surplus once all member benefits have been paid. The Group’s judgement

is based on legal advice that the trustees would be unable to unconditionally wind up the plan

or enhance members’ benefits without the Group’s consent.

The funded and unfunded amounts recognised on the Balance Sheet are determined as follows:

		2025				2024
		US				US
	UK	(Medical)	Other	Total	UK	(Medical)	Other	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Present value of funded obligations	(813)	–	(378)	(1,191)	(853)	–	(410)	(1,263)
Fair value of plan assets	1,039	–	399	1,438	1,070	–	419	1,489
Surplus of funded plans	226	–	21	247	217	–	9	226
Present value of unfunded obligations	–	(56)	(119)	(175)	–	(64)	(125)	(189)
Irrecoverable surplus	(3)	–	(2)	(5)	(3)	–	–	(3)
Net pension surplus/
(liability)	223	(56)	(100)	67	214	(64)	(116)	34

Group plan assets are as follows:

		2025				2024
		US				US
	UK	(Medical)	Other	Total	UK	(Medical)	Other	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Equities	58	–	91	149	68	–	97	165
Government bonds	100	–	77	177	123	–	74	197
Corporate bonds	292	–	163	455	289	–	168	457
Real estate/property
– unquoted	2	–	2	4	8	–	6	14
Insurance contracts	228	–	–	228	249	–	–	249
Other assets	359	–	66	425	333	–	74	407
Fair value of plan assets	1,039	–	399	1,438	1,070	–	419	1,489

The Group plan assets do not include: (a) the Group’s own transferable financial instruments and

(b) property occupied by, or other assets used by, the Group.

In 2020 and 2021, the trustees of three of the UK pension plans entered into annuity buy-in

agreements which cover, in aggregate, £228 million of pension liabilities valued under IAS 19 at

31 December 2025 (£249 million of pension liabilities valued under IAS 19 at 31 December 2024).

The agreements involved the purchase of bulk annuity policies under which the insurer will pay

the UK pension funds amounts equivalent to the benefits payable to members. These purchases

were conducted by the trustees to ensure the pension fund had an asset that would match its

obligation to members. The policies are valued in accordance with IAS 19 by the plans’ actuary

such that the fair value on the annuity policies is deemed to be the present value of the related

obligation measured using the assumptions underpinning the valuation of the defined benefit

obligation. The pension liabilities remain with, and the matching annuity policies are held within,

the UK pension funds. As this was an investment decision by the trustees, the immaterial

reduction in the valuation of plan assets (due to the difference between the purchase price

of the annuity policy and the accounting value of the buy-in asset) arising on each buy-in was

recorded within other comprehensive income. The trustees have not entered any such buy-in

agreements in the years 2022 to 2025.

At 31 December 2025 the Group has not committed to any buy-out arrangements in respect

of any of the UK pension schemes.

Included in other assets is £270 million (2024: £273 million) relating to liability driven investment

funds. This is a bespoke pooled investment vehicle, a unit linked insurance policy (ULIP) with

underlying listed bonds, equities and structured notes. The fair value of the vehicle is provided

by the fund manager based on the underlying value of the securities held within the vehicle.

The trustees purchased these investments in 2021 to lower risk within the portfolio without

reducing potential returns. These investments have a low leverage percentage and sufficient

capital collateral in place. The remaining other assets are cash.

The present value of obligations for the combined UK plans and the US (Medical) plans at last

valuation date is attributable to participants as follows:

	2025		2024
	UK	US (Medical)	UK	US (Medical)
	£m	£m	£m	£m
Active participants	–	(11)	–	(14)
Participants with deferred benefits	(252)	–	(286)	(1)
Participants receiving benefits	(561)	(45)	(567)	(49)
Present value of obligation	(813)	(56)	(853)	(64)

Notes to the Financial Statements continued

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23 Pension and Post-Retirement Commitments continued

Amounts recognised on the Balance Sheet continued

The movement in the Group’s net surplus/(deficit) is as follows:

		Present value of obligation					Fair value of plan assets
	UK	US (Medical)	Other	Total	UK	US (Medical)	Other	Total
	£m	£m	£m	£m	£m	£m	£m	£m
At 1 January 2024	969	73	539	1,581	(1,178)	–	(443)	(1,621)
Current service cost	–	–	12	12	–	–	–	–
Administrative costs	3	–	–	3	–	–	2	2
Interest expense/(income)	44	4	21	69	(54)	–	(20)	(74)
	47	4	33	84	(54)	–	(18)	(72)
Remeasurements:
Return on plan assets, excluding amounts included in interest income	–	–	–	–	103	–	17	120
(Gains)/losses from changes in demographic assumptions	(8)	(4)	11	(1)	–	–	–	–
Gains from changes in financial assumptions	(81)	(3)	(11)	(95)	–	–	–	–
Experience (gains)/losses	(15)	–	4	(11)	–	–	–	–
	(104)	(7)	4	(107)	103	–	17	120
Exchange differences	–	–	(3)	(3)	–	–	(1)	(1)
Contributions – employers	–	–	–	–	–	(6)	(12)	(18)
Benefit payments	(59)	(6)	(38)	(103)	59	6	38	103
As at 31 December 2024	853	64	535	1,452	(1,070)	–	(419)	(1,489)
Current service cost	–	–	10	10	–	–	–	–
Administrative costs	3	–	–	3	–	–	2	2
Interest expense/(income)	46	6	22	74	(59)	–	(22)	(81)
	49	6	32	87	(59)	–	(20)	(79)
Remeasurements:
Return on plan assets, excluding amounts included in interest income	–	–	–	–	26	–	(6)	20
(Gains)/losses from changes in demographic assumptions	(17)	(1)	–	(18)	–	–	–	–
(Gains)/losses from changes in financial assumptions	(15)	1	(9)	(23)	–	–	–	–
Experience losses/(gains)	7	–	–	7	–	–	(2)	(2)
	(25)	–	(9)	(34)	26	–	(8)	18
Exchange differences	–	(4)	(19)	(23)	–	–	20	20
Contributions – employers	–	–	–	–	–	(7)	(9)	(16)
Benefit payments	(64)	(10)	(37)	(111)	64	7	37	108
As at 31 December 2025	813	56	502	1,371	(1,039)	–	(399)	(1,438)

Notes to the Financial Statements continued

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23 Pension and Post-Retirement Commitments continued

Amounts recognised in the Income Statement

The charge for the year ended 31 December is shown below:

	2025	2024
	£m	£m
Defined contribution plans	44	48
Defined benefit plans (net charge excluding interest)
UK	3	3
Other	12	12
Total pension costs included in operating profit (Note 5) 1	59	63
Pension net finance income included in net finance expense (Note 6)	(7)	(5)
Income Statement charge included in profit before income tax	52	58
Remeasurement gains/(losses) for 2 :
UK	(1)	1
US (Medical)	–	7
Other	17	(21)
	16	(13)

1 The Income Statement charge recognised in operating profit includes current service cost, past service cost and

administrative costs

2 Remeasurement gains/(losses) exclude £1 million (2024: £nil) recognised in OCI for irrecoverable surplus

Sensitivity of significant actuarial assumptions

The sensitivity of the UK defined benefit obligation to changes in the principal assumptions is

shown below:

		Change in defined
2025	Change in assumption	benefit obligation
Discount rate	Increase 0.1%	Decrease by 1.0%
Discount rate	Increase 1.0%	Decrease by 9.4%
RPI increase	Increase 0.1%	Increase by 0.6%
RPI increase	Increase 1.0%	Increase by 7.7%
Life expectancy	Members live 1 year longer	Increase by 3.9%

		Change in defined
2024	Change in assumption	benefit obligation
Discount rate	Increase 0.1%	Decrease by 1.1%
Discount rate	Increase 1.0%	Decrease by 9.9%
RPI increase	Increase 0.1%	Increase by 0.9%
RPI increase	Increase 1.0%	Increase by 7.7%
Life expectancy	Members live 1 year longer	Increase by 3.1%

The above sensitivity analyses are based on a change in an assumption while holding all other

assumptions constant. In practice, this is unlikely to occur, and changes in some of the

assumptions may be correlated.

Impact of medical cost trend rates

A 1% change in the assumed healthcare cost trend rates would have an immaterial impact

on the service cost, interest cost and post-retirement benefit obligation.

Risk and risk management

Through its defined benefit pension plans and post-employment medical plans, the Group

is exposed to a number of risks, the most significant of which are detailed as follows:

Asset volatility

The plan liabilities are calculated using a discount rate set with reference to corporate bond

yields. If plan assets underperform this yield, this will create a deficit/reduce the surplus. The US

plans hold a significant proportion of equities, which are expected to outperform corporate

bonds in the long term while providing volatility and risk in the short term. However, the Group

believes that due to the long-term nature of the plan liabilities and the strength of the

supporting group, a level of continuing equity investment is an appropriate element of the

Group’s long-term strategy to manage the plans efficiently.

Investments are well diversified, such that the failure of any single investment would not

have a material impact on the overall level of assets. A portion of assets consists of unit linked

insurance policies with underlying investments in quoted equities and quoted bonds, although

the Group also invests in property and cash. The Group believes that quoted equities offer the

best returns over the long term with an acceptable level of risk. The trustees of all the UK funds

have moved the majority of their assets to low-cost investment funds in consultation with the

Group whilst maintaining prudent diversification and appropriate interest and inflation hedging.

The trustees of the principal UK plan and the Group have aligned goals in respect of climate

risk which includes a 50% reduction in carbon footprint ambition by 2030. The trustees of the

principal UK plan have carried out climate change scenario analysis to help them understand and

quantify the potential effects of climate change on the plan’s assets and liabilities and identify

possible actions to address the risks and opportunities presented.

Changes in bond yields

A decrease in government and corporate bond yields will increase plan liabilities, although this

will be partially offset by an increase in the value of the plans’ bond holdings.

Inflation risk

Some of the Group’s pension obligations are linked to inflation, and higher inflation will lead to

higher liabilities (although, in most cases, caps on the level of inflationary increases are in place

to protect the plan against extreme inflation). In order to manage inflationary risks, the trustees’

investment strategy within the UK plan provides a high level of protection against higher

expected long-term inflation through investments in index-linked gilts, liability driven

investments and insurance contracts. In the US plans, the pensions in payment are not linked

to inflation, so this is a less material risk.

Notes to the Financial Statements continued

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23 Pension and Post-Retirement Commitments continued

Risk and risk management continued

Life expectancy

The majority of the plans’ obligations are to provide benefits for the life of the member. Whilst

the plans allow for an increase in life expectancy, increases above this assumption will result in

an increase in the plans’ liabilities. This is particularly significant in the UK plan, where inflationary

increases to benefits result in higher sensitivity to improvements in life expectancy. In 2020 the

principal UK scheme reduced its exposure by purchasing an insurance product that will pay the

pensions of some of the plan’s pensioners. In 2021 two other UK pension schemes purchased a

similar insurance policy covering 100% of their members’ benefits.

Change in regulations

The Group is aware that future changes to the regulatory framework may impact the funding

basis of the various plans in the future. The Group’s pensions department monitors the changes

in legislation and analyses the risks as and when they occur.

In June 2023, the High Court in England handed down a decision in the case of Virgin Media

Limited v NTL Pension Trustees II Limited and others relating to the validity of certain historical

pension changes due to the lack of actuarial confirmation required by law. In July 2024, the Court

of Appeal dismissed the appeal brought by Virgin Media Limited against aspects of the June

2023 decision. The conclusions reached by the court in this case may have had implications for

other UK defined benefit plans; hence the Group and pension trustees have been considering

the implications of the case for the Group’s UK plans and legal advice has been sought

pertaining to this matter for each of the UK plans. On 2 September 2025, the government

published draft amendments to the Pensions Scheme Bill which would give affected pension

schemes the ability to retrospectively obtain actuarial certificates if required. The draft

legislation will need to be agreed by both Houses of Parliament before it passes into law.

Following the publication of draft legislation, the Directors do not expect the Virgin Media

ruling to give rise to any additional liabilities and so the defined benefit obligation has not

been adjusted and continues to reflect the benefits currently being administered.

The defined benefit obligation has been calculated on the basis of the pension benefits

currently being administered and, given government intervention, the Directors do not consider

it necessary to make any adjustments as a result of the Virgin Media case.

24 Share Capital

		Nominal
	Number of equity	value
Issued and fully paid	ordinary shares	£m
At 31 December 2024	736,535,179	74
Cancellations	(34,445,840)	(4)
At 31 December 2025	702,089,339	70

The holders of ordinary shares (par value 10 pence) are entitled to receive dividends (Note 28)

as declared from time to time and are entitled to one vote per share at meetings of the

Parent Company.

Repurchase of ordinary shares

In July 2025, the Group announced a new share buyback programme of an amount of £1 billion

to be effected over 12 months. During 2025, as part of this share buyback programme, the

Group entered into commitments to purchase £500 million of ordinary shares.

A share repurchase liability of £101 million has been recognised in the Balance Sheet as at

31 December 2025 (2024: £477 million), reflecting contractual obligations to purchase ordinary

shares (including associated costs).

During the period to 31 December 2025, 16,382,499 shares have been purchased at a total

cost of £879 million. Repurchased ordinary shares have been included in the Treasury shares

(see below).

Allotment of ordinary shares and release of Treasury shares

During the year nil ordinary shares (2024: nil ordinary shares) were allotted and 34,445,840

ordinary shares were cancelled from Treasury (2024: nil ordinary shares).

During the year 2,139,883 ordinary shares were released from Treasury (2024: 1,083,133), and

16,382,499 ordinary shares (2024: 28,488,957 ordinary shares) were bought back, to satisfy

vesting/exercises under the Group’s various share schemes as follows:

		2025		2024
	Number of	Consideration	Number of	Consideration
Ordinary shares of 10p	shares	£m	shares	£m
Released from Treasury
Executive Share Options – exercises	–	–	18,117	1
Restricted Shares Awards – vesting	1,165,886	–	1,013,180	–
Total under Executive Share Option
and Conditional Award Schemes	1,165,886	–	1,031,297	1
Savings-related Share Option Schemes –
exercises	973,997	43	51,836	2
Total released from Treasury	2,139,883	43	1,083,133	3
Bought into Treasury
Repurchase of shares	(16,382,499)	(879)	(28,488,957)	(1,328)
Total	(14,242,616)	(836)	(27,405,824)	(1,325)

In 2025, 2,139,883 Treasury shares were released (2024: 1,083,133) and 16,382,499 ordinary shares

(2024: 28,488,957 ordinary shares) were bought back, and 34,445,840 shares were cancelled

(2024: nil ordinary shares), leaving a balance held at 31 December 2025 of 29,709,130 (2024:

49,912,354). Proceeds received from the reissuance of Treasury shares to exercise share options

were £43 million (2024: £3 million).

Notes to the Financial Statements continued

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Strategic report Governance Financial statements Other information

25 Share-Based Payments

The Group operates a number of incentive schemes, including a Long-Term Incentive Plan (LTIP)

and various other share plans. All awards under these plans are equity settled. The total expense

recognised in respect of share-based payments for the year was £101 million (2024: £85 million).

Executive share awards

Executive share awards granted to the senior management team under the LTIP consist of

Performance Share Options, Performance Shares, and Time-Vested Shares. For Performance

Share Options and Performance Shares, vesting is conditional on achievement of specified

performance targets over a three-year period as well as continued employment. For Time-

Vested Shares, vesting is conditional only on continued employment, typically over three years

from grant. For Performance Share Options, the exercise price is determined on the grant date

and becomes payable on exercise, which may be up to seven years after the options have

vested. Performance Shares and Time-Vested Shares entitle the recipient to receive shares

at no cost following satisfaction of the vesting conditions.

The performance metrics and associated weightings for LTIP awards from 2022 onwards are

as follows:

LTIP performance metrics – 2022 to 2025 awards	Weighting
Like-for-like Net Revenue growth	40%
Return on capital employed (ROCE)	25%
Relative total shareholder return (TSR)	25%
Sustainability	10%

Other share awards

Other share awards include savings-related share options (offered to all staff within the relevant

geographic area) and a number of Senior Executive Share Ownership Policy Plan (SOPP) awards.

Other share awards have contractual lives of between three and eight years and are generally

not subject to any vesting conditions other than the employee’s continued employment.

Individual tranches of these other share awards are not material for detailed disclosure and

therefore information about these awards is presented only on an aggregated basis.

Valuation of share awards

The fair value of share options granted is calculated using a Black-Scholes model. Performance

Share Options and Performance Shares which include the market TSR performance target are

valued by a third-party expert using a Monte Carlo model. For Performance Shares with

non-market-based performance conditions and for Time-Vested Shares, the fair value is the

share price on the date of grant. No adjustment is made to the market price at grant because

all Performance Shares and Time-Vested Shares accrue dividend equivalents. Performance

Options do not accrue dividend equivalents.

The weighted average fair value of the LTIP Performance Share Options granted in the year

and the key assumptions made in arriving at that fair value were as follows:

		Performance Share Options
	2025	2024
Exercise price	£52.48	£50.90
Performance period	2025 to 2027	2024 to 2026
Share price on grant date	£52.94	£50.14
Volatility	23.5%	22.3%
Dividend yield	3.9%	3.9%
Expected life	7.1 years	6.9 years
Risk-free interest rate	4.4%	3.9%
Weighted average fair value per award	£10.13	£7.68

An estimate of future volatility is made with reference to historical volatility over a similar

time period to the expected life of the option. Historical volatility is calculated based on the

annualised standard deviation of the Group’s daily share price movement, which approximates

the continuously compounded rate of return on the share.

The weighted average fair value of the LTIP Performance Shares granted in the year was

£48.09 per award (2024: £41.65 per award).

Movements in the year

The following table shows movements in the total number of outstanding awards across all

award types:

		Year ended		Year ended
	31 December 2025			31 December 2024
		Weighted		Weighted
	Number of	average	Number of	average
	awards	exercise price	awards	exercise price
Outstanding at 1 January	19,271,188	£42.73	18,562,750	£45.24
Granted	5,926,529	£30.45	6,449,300	£31.65
Exercised	(2,082,357)	£20.86	(1,112,643)	£2.90
Lapsed	(4,640,135)	£46.54	(4,628,219)	£46.90
Outstanding at 31 December	18,475,225	£40.36	19,271,188	£42.73
Exercisable at 31 December	4,447,017	£63.53	4,273,783	£63.35

The weighted average share price over the year was £53.60 (2024: £47.28).

Notes to the Financial Statements continued

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Strategic report Governance Financial statements Other information

Notes to the Financial Statements continued

25 Share-Based Payments continued

Summary of outstanding awards

For awards outstanding at the year end the weighted average remaining contractual life

is 4.2 years (2024: 5.0 years) and the range of exercise prices is as follows:

	Price to be paid			Number of awards
	£			outstanding
			At 31 December	At 31 December
	From	To	2025	2024
LTIP – Performance Share Options	42.01	78.00	10,936,627	11,621,996
LTIP – Performance Shares	–	–	3,110,384	3,404,027
LTIP – Time-Vested Shares	–	–	1,551,693	1,197,033
SOPP	–	–	167,040	141,400
Savings-related share options	40.49	62.44	2,709,481	2,906,732
Total			18,475,225	19,271,188

For LTIP awards with non-market performance conditions, assumptions regarding the number

of awards that will eventually vest are based on the Directors’ expectations in light of the

Group’s business model and relevant published targets.

There has been no material modification of outstanding awards such as would impact the

expense recognised in respect of share-based payments.

26 Other Reserves

		Foreign
		currency	Total
	Hedging	translation	other
	reserve	reserve	reserves
Attributable to owners of the Parent	£m	£m	£m
Balance at 1 January 2024	(26)	(1,034)	(1,060)
Other comprehensive income/(expense):
Fair value gains on cash flow hedges, net of tax	9	–	9
Reclassification of cash flow hedges to the Income Statement	29	–	29
Net exchange losses on foreign currency translation, net of tax	–	(442)	(442)
Gains on net investment hedges, net of tax	–	85	85
Reclassification of foreign currency translation reserves on disposal or liquidation of foreign operations, net of tax	–	(11)	(11)
Total other comprehensive income/(expense) for the year	38	(368)	(330)
Balance at 31 December 2024	12	(1,402)	(1,390)
Other comprehensive income/(expense):
Fair value gains on cash flow hedges, net of tax	9	–	9
Reclassification of cash flow hedges to the Income Statement	–	–	–
Net exchange losses on foreign currency translation, net of tax	–	(128)	(128)
Losses on net investment hedges, net of tax	–	(79)	(79)
Reclassification of cash flow hedges to the income statement	(28)	–	(28)
Reclassification of foreign currency translation reserves on disposal or liquidation of foreign operations, net of tax	–	(136)	(136)
Total other comprehensive expense for the year	(19)	(343)	(362)
Balance at 31 December 2025	(7)	(1,745)	(1,752)

The hedging reserve comprises the effective portion of the cumulative net change in fair value

of cash flow hedging instruments related to hedge transactions that are extant at year end.

The foreign currency translation reserve contains the accumulated foreign exchange differences

from the translation of the Financial Statements of the Group’s foreign operations arising when

the Group’s entities are consolidated. The reserve also contains the translation of liabilities that

hedge the Group’s net exposure in a foreign currency.

During the year ended 31 December 2025, a net gain of £136 million (2024: £11 million net gain)

was reclassified to the Income Statement from foreign currency reserves following the disposal

or liquidation of foreign operations, of which a £nil net gain (2024: £nil net gain) related to the

liquidation of subsidiaries (see Note 6 for further details).

Reckitt Annual Report and Accounts 2025

176

Strategic report Governance Financial statements Other information

Notes to the Financial Statements continued

27 Related Party Transactions

The Group has related party relationships with its Directors and key management personnel

(Note 5).

On 31 December 2025, Lavender Dutch TopCo B.V. and its subsidiaries (the Vestacy Group)

became related entities to the Group. Balances with related entities are set out in the table

below. The payables and receivables relate to pre-existing trading balances between Reckitt

subsidiaries acquired by Lavender Bidco B.V. and other subsidiaries. As explained in Note 29,

consideration also included a vendor loan note.

	2025
Amounts relating to Vestacy Group included in Group Balance Sheet	£m
Included in other payables	(134)
Included in other receivables	169
Included in vendor loan note receivable	223

A vendor loan note certificate was issued on 31 December 2025 by Lavender Dutch MidCo 1 B.V.

with an initial aggregate principal face-value amount of US $300 million. The vendor loan note

matures on 31 December 2034 subject to earlier prepayment and accrues interest at the

following rates:

Rate per annum	Period
9.0%	31 December 2025 to 31 December 2028
10.0%	1 January 2029 to 31 December 2029
11.0%	1 January 2030 to 31 December 2031
12.0%	1 January 2032 to 31 December 2034

28 Dividends

	2025	2024
	£m	£m
Cash dividends on equity ordinary shares:
2024 final paid: 12 1 .7p (2023: final paid: 11 5 .9p) per share	830	820
2025 interim paid: 8 4 . 4p (2024: interim paid: 8 0 . 4p) per share	573	561
Total dividends for the year	1,403	1,381

The Directors are proposing a final dividend in respect of the financial year ended 31 December

2025 of 127.8 pence per share which will absorb an estimated £825 million of shareholders’

funds. If approved by shareholders it will be paid on 12 June 2026 to shareholders who are

on the register on 10 April 2026, with an ex-dividend date of 9 April 2026.

29 Acquisitions and Disposals

Acquisitions

There were no acquisitions material to the Group during 2025 and 2024.

Disposals

On 31 December 2025, the Group completed the sale of Essential Home for total consideration,

net of disposal costs, of £2.2 billion. The consideration was principally represented by cash of

£2.1 billion, a vendor loan note issued by the acquirer and shares in Lavender Dutch TopCo B.V.,

representing 30% of ordinary share capital. The disposal followed the Group’s strategy

announcement in July 2024 to reshape into a more efficient, world-class consumer health

and hygiene company, focused on a portfolio of 11 high-growth, high-margin Powerbrands.

The transaction was structured as a sale of the Essential Home and Argentina business,

including the factories in Derby, United Kingdom, Florencio, Argentina, Granollers, Spain,

Porto Alto, Portugal, Tatabanya, Hungary, and Tijuana, Mexico. The sale did not include

territories of Russia and Belarus.

On completion of the disposal, the Group recognised a pre-tax gain on disposal of £1.2 billion.

The Essential Home business (presented as an operating segment) was established on

1 January 2025 solely to facilitate its disposal from the Group. The disposal of Essential Home

does not meet the definition of a discontinued operation under IFRS as it does not represent

the disposal of a separate major line of business or a geographical area of operations for

Reckitt. As such, the results of the disposed business are included in the continuing operations

up to the date of disposal.

Reckitt Annual Report and Accounts 2025

177

Strategic report Governance Financial statements Other information

Notes to the Financial Statements continued

29 Acquisitions and Disposals continued

Disposals continued

The following table sets out the effect of the disposal completed in the year ended

31 December 2025:

	Essential
	Home
	£m
Cash consideration	2,092
Non-cash consideration
– Vendor loan note receivable 1	223
– Shares in Lavender Dutch TopCo B.V. 2	68
– Vendor loan note fee	5
– Amounts due under completion accounts	(23)
Associated disposal and separation costs	(193)
Total consideration, net of disposal costs	2,172
Consideration deferred to future periods	(25)
Consideration recognised on disposal in year ended December 2025	2,147
Goodwill and other intangible assets	938
Property, plant and equipment and right of use assets	84
Inventories	210
Cash and cash equivalents	195
Trade receivables and other assets	400
Trade payables and other liabilities	(723)
Net assets disposed	1,104
Cumulative foreign exchange gain reclassified to the Income Statement	202
Gain on disposal, before tax	1,245

Amounts included in the Cash Flow Statement:

	£m
Cash consideration above	2,092
Cash transferred within disposal group	(195)
Cash costs incurred on disposal	(111)
Amount included in proceeds from sale of intangible assets and related
businesses, net of cash disposed	1,786

1 The fair value of the vendor loan note receivable was determined using discounted cash flows, with the discount rate

derived from Lavender Dutch TopCo B.V.’s cost of senior debt adjusted for subordination using other observable market data

2 Following the completion of the disposal of Essential Home on 31 December 2025, Reckitt retained a 30% interest in the

issued share capital of Lavender Dutch TopCo B.V. (Topco). Topco’s share capital comprises two classes of shares: A shares,

held by the controlling shareholder, and B shares, held by Reckitt. Under the terms of the Shareholder Agreement, the A

shares have priority in the distribution of returns and Reckitt’s shareholding has a lack of marketability. This has been

reflected as a reduction in its valuation.

The fair value of Reckitt’s retained interest was determined using an option pricing model, under which the value of the B

shares was modelled as a series of call options representing the present value of expected future returns to shareholders.

Key assumptions and inputs to the model included:

• Expected time to exit: five years, based on management’s estimate of the likely investment horizon

• Volatility: based on historical share price data of comparable listed companies, adjusted for Topco’s higher leverage and

risk profile

• Risk-free rate: based on the US Treasury yield curve at the measurement date

The fair value measurement is categorised as Level 3 in the IFRS 13 fair value hierarchy and was performed on a non-

recurring basis at the date Reckitt lost control of Essential Home.

30 Discontinued Operations

The expense in the current year from discontinued operations of £16 million (2024: £4 million)

relates to interest accruing on an uncertain tax position and other provisions relating to the

former RB Pharmaceuticals business (now Indivior plc).

31 Post Balance Sheet Events

The Directors are proposing a final dividend in respect of the financial year ended

31 December 2025. See note 28 for further details.

Following the announcement on 31 December 2025 confirming the completion of the divestment

of the Essential Home business and following shareholder approval of the General Meeting held

on 27 January 2026, the Group also returned £1.6 billion to shareholders on 20 February 2026

by way of special dividend of 235 pence per ordinary share.

With the aim of maintaining share price comparability before and after the special dividend,

the Group also completed a share consolidation on 2 February 2026, as a result of which

shareholders received 24 new ordinary shares with a nominal value of 10 5/12 pence for every

25 existing ordinary shares held. The new ordinary shares are traded on the London Stock

Exchange in the same way as the previously existing ordinary shares and carry the same

rights which were attached to the previously existing ordinary shares, as set out in the Parent

Company’s Articles of Association. After the share consolidation, the total number of ordinary

shares in issue was 644,753,406.

In February 2026, the Group entered a new £350 million committed borrowing facility,

which expires after three years.

Reckitt Annual Report and Accounts 2025

178

Strategic report Governance Financial statements Other information

The five-year summary below is presented on an IFRS basis. The years ended 31 December 2021, 31 December 2022, 31 December 2023, 31 December 2024 and 31 December 2025 show the results

for continuing operations.

Income Statement

2025

£m

2024

£m

2023

£m

2022

£m

2021

£m

Net Revenue 14,205 14,169 14,607 14,453 13,234

Operating profit/(loss) 4,217 2,425 2,531 3,249 (804)

Net finance (expense)/income (379) (321) (130) (161) 547

Share of loss and impairment of equity-accounted investees, net of tax – – – (21) (3)

Profit/(loss) before income tax 3,838 2,104 2,401 3,067 (260)

Income tax (charge)/credit (635) (672) (753) (711) 208

Attributable to non-controlling interests (5) (2) (14) (19) (11)

Net profit/(loss) attributable to owners of the Parent Company from continuing operations 3,198 1,430 1,634 2,337 (63)

Balance Sheet

Net assets 7,781 6,720 8,469 9,483 7,453

Key statistics – IFRS basis

Operating margin 29.7% 17.1% 17.3% 22.5% (6.1%)

Diluted earnings per share, continuing 469.5p 203.8p 227.4p 325.7p (8.8p)

Declared total dividends per ordinary share 212.2p 202.1p 192.5p 183.3p 174.6p

Five-Year Summary (Unaudited)

Reckitt Annual Report and Accounts 2025

179

Strategic report Governance Financial statements Other information

Note

2025

£m

2024

£m

Fixed assets

Investments 2 15,343 15,248

Current assets

Debtors due within one year 3, 6 248 313

Debtors due after more than one year 4, 6 2 8

250 321

Current liabilities

Creditors due within one year 5, 6 (6,438) (3,901)

Share repurchase liability 6 (101) (477)

Net current liabilities (6,289) (4,057)

Total assets less current liabilities 9,054 11,191

Provisions for liabilities and charges 7 (27) (25)

Net assets 9,027 11,166

Equity

Share capital 8 70 74

Share premium 254 254

Capital redemption reserve 4 –

Retained earnings 8,699 10,838

Total equity 9,027 11,166

Reckitt Benckiser Group plc has made a loss of £374 million (2024: profit of £4,280 million) for the

financial year.

The Financial Statements on pages 179 to 197 were approved by the Board of Directors and

signed on its behalf on 4 March 2026 by:

Sir Jeremy Darroch Kris Licht

Director Director

Reckitt Benckiser Group plc Reckitt Benckiser Group plc

Company Number: 06270876

capital

£m

premium

£m

Capital

redemption

reserve

£m

Retained

earnings

£m

Total

equity

£m

Balance at 1 January 2024 74 254 – 9,362 9,690

Comprehensive income

Profit for the financial year – – – 4,280 4,280

Total comprehensive income – – – 4,280 4,280

Transactions with owners

Treasury shares reissued – – – 3 3

Purchase of ordinary shares by

employee share ownership trust – – (2) (2)

Repurchase of ordinary shares – – (1,509) (1,509)

Share-based payments – – 11 11

Capital contribution in respect of

share-based payments – – – 74 74

Cash dividends – – – (1,381) (1,381)

Total transactions with owners – – – (2,804) (2,804)

Balance at 31 December 2024 74 254 – 10,838 11,166

Comprehensive income

Loss for the financial year – – – (374) (374)

Total comprehensive loss – – – (374) (374)

Transactions with owners

Treasury shares reissued – – – 43 43

Purchase of ordinary shares by

employee share ownership trust – – – (3) (3)

Repurchase of ordinary shares – – – (503) (503)

Share-based payments – – – 6 6

Capital contribution in respect of share-

based payments – – 95 95

Cancellation of Treasury shares (4) – 4 – –

Cash dividends – – – (1,403) (1,403)

Total transactions with owners (4) – 4 (1,765) (1,765)

Balance at 31 December 2025 70 254 4 8,699 9,027

Reckitt Benckiser Group plc has £7,672 million (2024: £9,912 million) of its retained earnings

available for distribution. Details of Treasury shares and other equity transactions are included

inNote 24 of the Group Financial Statements.

Parent Company Statement of Changes in Equity

For the year ended 31 December 2025

Parent Company Balance Sheet

As at 31 December 2025

Reckitt Annual Report and Accounts 2025

180

Strategic report Governance Financial statements Other information

1 Parent Company Accounting Policies

The principal accounting policies are summarised below. They have all been applied consistently

throughout the year and the preceding year.

General information and basis of accounting

Reckitt Benckiser Group plc is a company incorporated in the United Kingdom, registered in

England and Wales under the Companies Act 2006, and is a public limited company. The address

of the registered office is given on page 212.

The Company is the parent of the Reckitt Benckiser Group and its principal activity is to act as a

holding company for the Group. The nature of the Group’s operations and its principal activities

are set out in the Strategic Report on pages 1 to 52.

Statement of compliance

The Financial Statements have been prepared under the historical cost convention and in

compliance with United Kingdom Accounting Standards, including Financial Reporting Standard

102, The Financial Reporting Standard applicable in the United Kingdom and the Republic of

Ireland (FRS 102), and the Companies Act 2006.

The functional currency of Reckitt Benckiser Group plc is considered to be pounds sterling

because that is the currency of the primary economic environment in which the Company

operates.

As permitted by s408 of the Companies Act 2006, a Statement of Comprehensive Income is not

presented for Reckitt Benckiser Group plc.

Going concern

Having assessed the principal risks and other matters discussed in connection with the Group’s

Viability Statement as set out on page 52 of the Group Annual Report, the Directors considered

it appropriate to adopt the going concern basis of accounting in preparing the Company

Financial Statements. When reaching this conclusion, the Directors took into account the

Company’s overall financial position and exposure to principal risks.

Financial Reporting Standard 102 – Reduced Disclosure Exemptions

FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions,

which have been complied with.

The Company has taken advantage of the following exemptions:

(i) from preparing a Statement of Cash Flows, on the basis that it is a qualifying entity and the

Group Cash Flow Statement, included in these Financial Statements, includes the Company’s

cash flows; and

(ii) from disclosing the Company key management personnel compensation, as required by FRS

102 paragraph 33.7.

The Company’s results are included in the publicly available consolidated Financial Statements of

Reckitt Benckiser Group plc and these Financial Statements may be obtained from 103-105 Bath

Road, Slough, Berkshire SL1 3UH or at reckitt.com.

Foreign currency translation

Transactions denominated in foreign currencies are translated using exchange rates prevailing at

the dates of the transactions. Foreign exchange gains and losses resulting from the settlement

of foreign currency transactions and from the translation at year-end exchange rates of

monetary assets and liabilities denominated in foreign currencies are recognised in the

Statement of Comprehensive Income.

Taxation

The tax charge/credit is based on the result for the year and takes into account taxation

deferred due to timing differences between the treatment of certain items for taxation and

accounting purposes. Deferred tax liabilities are provided for in full and deferred tax assets are

recognised to the extent that they are considered recoverable.

A net deferred tax asset is considered recoverable if it can be regarded as more likely than not

that there will be suitable taxable profits against which to recover carried forward tax losses

and from which the future reversal of underlying timing differences can be deducted.

Deferred tax is recognised in respect of all timing differences that have originated but not

reversed at the Balance Sheet date, where transactions or events that result in an obligation to

pay more tax in the future or a right to pay less tax in the future have occurred at the Balance

Sheet date.

Deferred tax is measured at the average tax rates that are expected to apply in the periods in

which the timing differences are expected to reverse, based on tax rates and laws that have

been enacted or substantively enacted by the Balance Sheet date. Deferred tax is measured on

an undiscounted basis.

The Company has applied the temporary mandatory exception from accounting for deferred

taxes arising from the Pillar Two model rules as set out in ‘International Tax Reform – Pillar Two

Model Rules (Amendments to FRS 102)’ issued by the FRC in July 2023.

Notes to the Parent Company Financial Statements

Reckitt Annual Report and Accounts 2025

181

Strategic report Governance Financial statements Other information

1 Parent Company Accounting Policies continued

Fixed asset investments

Fixed asset investments are stated at the lower of cost or their recoverable amount, which is

determined as the higher of net realisable value and value in use. A review of the potential

impairment of an investment is carried out by the Directors if events or changes in

circumstances indicate that the carrying value of the investment may not be recoverable.

Suchimpairment reviews are performed in accordance with FRS 102 Section 27 ‘Impairment

ofassets’.

Employee share schemes

Incentives in the form of shares are provided to employees under equity-settled share option

and restricted share schemes, which have various combinations of market-based and non-

market performance conditions, service conditions and non-vesting conditions.

The fair value determined at the award grant date takes into account the probability of any

relevant market-based performance conditions and non-vesting conditions being satisfied and

is subsequently expensed on a straight-line basis over the vesting period, based on the

Company’s estimate of equity instruments that will eventually vest. This estimate takes into

account the expected outcome for relevant non-market performance conditions and service

conditions but assumes satisfaction of all market-based performance conditions and non-

vesting conditions. At each Balance Sheet date, the Company revises its estimate of the number

of equity instruments expected to vest. The impact of the revision of the original estimates, if

any, is recognised in the Statement of Comprehensive Income such that the cumulative expense

reflects the revised estimate, with a corresponding adjustment to equity reserves.

Additional employer costs, including social security taxes, in respect of options and awards are

charged to the Statement of Comprehensive Income over the same period with a

corresponding liability recognised.

The grant by the Company of options over its equity instruments to the employees of subsidiary

undertakings in the Group is treated as a capital contribution. The fair value of employee

services received, measured by reference to the grant date fair value, is recognised over the

vesting period as an increase to investment in subsidiary undertakings, with a corresponding

credit to equity in the Company Financial Statements.

Financial instruments

The Company recognises financial instruments when it becomes a party to the contractual

obligations of the instrument.

(i) Financial assets

Basic financial assets are initially recognised at transaction price, unless the arrangement

constitutes a financing transaction, where the transaction is measured at the present value of

the future receipts. Such assets are subsequently carried at amortised cost.

At the end of each reporting period financial assets measured at amortised cost are assessed

for objective evidence of impairment. If an asset is impaired the impairment loss is the

difference between the carrying amount and the present value of the estimated cash flows

discounted at the asset’s original effective interest rate. The impairment loss is recognised in

comprehensive income or expense.

Financial assets are derecognised when: (a) the contractual rights to the cash flows from the

asset expire or are settled; or (b) substantially all the risks and rewards of the ownership of the

asset are transferred to another party; or (c) control of the asset has been transferred to another

party who has the practical ability to unilaterally sell the asset to an unrelated third party without

imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including loans from fellow Group companies, are initially recognised at

transaction price, unless the arrangement constitutes a financing transaction, where the debt

instrument is measured at the present value of future payments. Debt instruments are

subsequently carried at amortised cost.

Financial liabilities are derecognised when the liability is extinguished, that is when the

contractual obligation is discharged, cancelled or expires.

(iii) Derivative financial Instruments

Derivatives, including forward foreign exchange contracts, are not basic financial instruments.

Derivatives are initially recognised at fair value on the date a derivative contract is entered into

and subsequently remeasured at their fair value.

The Company designates certain derivative financial instruments as fair value hedges against

certain debtors in US$. Gains or losses arising from changes in the foreign exchange retranslation

of the hedged item and instrument are netted in profit or loss in the period in which they arise.

Notes to the Parent Company Financial Statements continued

Reckitt Annual Report and Accounts 2025

182

Strategic report Governance Financial statements Other information

1 Parent Company Accounting Policies continued

Provisions

Provisions are recognised when the Company has a present legal or constructive obligation as a

result of past events; it is more likely than not that there will be an outflow of resources to settle

that obligation; and the amount can be reliably estimated. Provisions are valued at the present

value of the Directors’ best estimate of the expenditure required to settle the obligation at the

Balance Sheet date. Where it is possible that a settlement may be reached or it is not possible

to make a reliable estimate of the estimated financial impact, appropriate disclosure is made but

no provision recognised.

Where a company enters into a financial guarantee contract to guarantee the indebtedness of

other companies within its Group, the Company treats the guarantee contract as a contingent

liability until such a time as it becomes probable that the Company will be required to make a

payment under the guarantee.

Share capital transactions

When the Company purchases equity share capital, the amount of the consideration paid,

including directly attributable costs, is recognised as a charge to equity. Purchased shares are

either held in Treasury in order to satisfy employee options, or cancelled and, in order to maintain

capital, an equivalent amount to the nominal value of the shares cancelled is transferred from

retained earnings.

Repurchase and reissuance of ordinary shares

When shares recognised as equity are repurchased, the amount of the consideration paid,

including directly attributable costs, is recognised as a charge to equity. Repurchased shares are

classified as Treasury shares and are presented in retained earnings. When Treasury shares are

sold or reissued subsequently, the amount received is recognised as an increase in equity and

the resulting surplus is presented within share premium.

Cancellation of ordinary shares

The nominal value of shares cancelled is transferred from share capital to the capital redemption

reserve.

Dividend distribution

Dividends to owners of the Parent Company are recognised as a liability in the period in which

the dividends are approved by the Company’s shareholders. Interim dividends are recorded in

the period in which they are approved and paid.

Accounting estimates and judgements

In preparing these Financial Statements, management has made judgements and estimates that

affect the application of the Company’s accounting policies and the reported amounts of

assets, liabilities, income and expenses. Actual amounts and results may differ from these

estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognised in the period in which the estimate is revised if the revision

affects only that period, or in the period of the revision and future periods if the revision affects

both current and future periods.

Key sources of estimation uncertainty

Each year, management is required to make a number of assumptions regarding the future. The

related year-end accounting estimates will, by definition, seldom equal the final actual results.

The estimates and assumptions that have a significant risk of causing a material adjustment to

the carrying amounts of assets and liabilities within the next financial year are addressed below.

Tax provisions

Current tax liabilities include an amount of £269 million (2024: £245 million) relating to uncertain

tax positions in respect of tax deductibility of management expenses. The exposure recognised

is calculated based on the expected value method and the most likely amount method. The

accounting estimates and judgements considered include:

• status of the unresolved matter;

• clarity of relevant legislation and related guidance;

• advice from related party specialists and unrelated third parties;

• range of possible outcomes; and

• statute of limitations.

The recognition of uncertain tax positions is reviewed regularly for changes in circumstances

and estimates are updated as potential resolutions for the tax uncertainties are encountered

through specific audits or wider case law. As a result, given the size, possible range of outcomes

and timing of resolution, there is a significant risk of material adjustment to the aggregate

carrying amount of these liabilities within the next financial year.

Legal provisions

The Company recognises legal provisions in line with the Company’s provisions policy. The level

of provisioning in relation to civil and/or criminal investigations is an area where management

and legal judgement is important, with individual provisions being based on best estimates of

the probable loss, considering all available information, external advice and historical experience.

As at 31 December 2025, the Company recognised legal provisions of £27 million (2024: £25

million) in relation to a number of historical regulatory matters. Refer to Note 7 of the Company

Financial Statements for further information.

The Company’s Directors are of the opinion that there are no other judgements and no further

key sources of estimation uncertainty in applying the Company’s accounting policies.

Notes to the Parent Company Financial Statements continued

Reckitt Annual Report and Accounts 2025

183

Strategic report Governance Financial statements Other information

2 Investments

Shares in

subsidiary

undertakings

£m

Cost

At 1 January 2024 15,174

Additions during the year 74

At 31 December 2024 15,248

Additions during the year 95

At 31 December 2025 15,343

Provision for impairment

At 1 January 2024 –

At 31 December 2025 –

Net book value

At 31 December 2024 15,248

At 31 December 2025 15,343

The Directors believe that the carrying value of the investments is supported by their underlying

net assets.

The subsidiary undertakings as at 31 December 2025, all of which are included in the Group

Financial Statements, are shown in Note 12 of the Company Financial Statements.

With the exception of Reckitt Benckiser Limited, none of the subsidiaries are directly held by

Reckitt Benckiser Group plc. All subsidiaries have a financial year ending 31 December with the

exception of: Reckitt Benckiser (India) Private Limited, Reckitt Benckiser Healthcare India Private

Limited, Mead Johnson Nutrition (India) Private Limited and Reckitt Piramal Private Limited which

have a year ending 31 March; Reckitt Benckiser Health Kenya Limited which has a year ending

30April; andLloyds Pharmaceuticals which has a year ending 24 August.

Additions during the year, and in 2024, relate to the grant by the Company of options over

itsequity instruments to the employees of subsidiary undertakings in the Group.

3 Debtors Due Within One Year

2025

£m

2024

£m

Amounts owed by Group undertakings 241 307

Other debtors 7 6

248 313

Amounts owed by Group undertakings are unsecured, interest free and repayable on demand

(2024: same).

4 Debtors Due After More Than One Year

2025

£m

2024

£m

Deferred tax assets 2 2

Other receivables – 6

2 8

Deferred tax assets consist of short-term timing differences.

5 Creditors Due Within One Year

2025

£m

2024

£m

Amounts owed to Group undertakings 6,134 3,639

Taxation and social security 270 246

Derivative liabilities – 1

Other creditors 34 15

6,438 3,901

Included in the amounts owed to Group undertakings is an amount of £5,938 million (2024:

£3,613 million) which is unsecured, carries interest at the official SONIA fallback rate and is

repayable on demand (2024: interest at the official ISDA fallback rate and is repayable on

demand). All other amounts owed to Group undertakings are unsecured, non-interest bearing

and repayable on demand (2024: same).

Included within taxation and social security creditors is an amount recognised in respect of

uncertain tax positions which may take several years to resolve (Note 1). Notwithstanding this,

the presentation of corporation tax liabilities has been assessed to reflect that there is not an

unconditional right to defer settlement of these liabilities and the carrying amount of £269

million (2024: £245 million) has been presented as a current liability.

Notes to the Parent Company Financial Statements continued

Reckitt Annual Report and Accounts 2025

184

Strategic report Governance Financial statements Other information

6 Financial instruments

2025

£m

2024

£m

Financial assets measured at amortised cost

Amounts owed by Group undertakings 241 307

Other receivables – current and non-current 7 12

248 319

Financial liabilities

Derivative financial instruments measured at fair value through

profit or loss

Derivative liabilities – (1)

Financial liabilities measured at amortised cost

Amounts owed to Group undertakings (6,134) (3,639)

Share repurchase liability (101) (477)

(6,235) (4,117)

7 Provisions for Liabilities and Charges

Legal

provisions

£m

Total

provisions

£m

At 1 January 2024 26 26

Charged to the Statement of Comprehensive Income 1 1

Utilised during the year (1) (1)

Released to the Statement of Comprehensive Income (1) (1)

At 31 December 2024 25 25

Charged to the Statement of Comprehensive Income 2 2

At 31 December 2025 27 27

Provisions have been analysed between current and non-current as follows:

2025

£m

2024

£m

Current 27 25

Non-current – –

27 25

Provisions relate to legal provisions in relation to a number of historical matters.

8 Share Capital

Issued and fully paid

Number of

equity ordinary

Nominal

value

£m

At 31 December 2024 736,535,179 74

Cancellations (34,445,840) (4)

At 31 December 2025 702,089,339 70

The holders of ordinary shares (par value 10 pence) are entitled to receive dividends as declared

from time to time and are entitled to one vote per share at meetings of the Parent Company.

Dividends proposed and paid are disclosed in Note 28 of the Group Financial Statements.

The allotment and cancellation of ordinary shares and release of Treasury shares are disclosed

inNote 24 of the Group Financial Statements.

In addition, the Company announced a share buyback programme also disclosed in Note 24 of

the Group Financial Statements.

9 Related Party Transactions

There were no transactions with related parties other than wholly owned companies within

theGroup.

Notes to the Parent Company Financial Statements continued

Reckitt Annual Report and Accounts 2025

185

Strategic report Governance Financial statements Other information

10 Contingent Liabilities

The Company has issued a guarantee to the trustees of the Reckitt Benckiser Pension Fund in

respect of the obligations of certain UK subsidiaries that act as sponsoring employers of the

Group’s UK defined benefit pension scheme. The guarantee covers any amounts due to the

pension fund from these subsidiaries should they fail to meet their pension obligations.

The Company has issued guarantees supporting the issuance of commercial paper under the

Group’s $8,000 million USD-denominated commercial paper programme (2024: same) and the

€3,000 million Euro commercial paper programme (2024: same).

The Company has also issued a guarantee on behalf of Reckitt Benckiser Treasury Services plc

inrespect of committed borrowing facilities totalling £4,400 million (2024: £4,450 million).

The Company has issued guarantees on behalf of wholly owned subsidiaries in respect of bonds

and senior notes in issue totalling EUR 5,350 million (2024: 4,000 million), GBP 1,350 million

(2024:1,100 million) and USD 3,000 million (2024: 4,050 million).

Further details regarding the above debt issuances are provided in Note 15 of the Group

Financial Statements.

During the year, the Company has issued guarantees on behalf of wholly owned subsidiaries

relating to Property & Business Interruption and Public & Products Liability Insurances.

The Company has provided guarantees to certain subsidiary undertakings to exempt them from

audit under Section 479A of the Companies Act 2006. The relevant subsidiaries are listed in Note

12 of the Group Financial Statements.

Other contingent liabilities are disclosed in Note 20 of the Group Financial Statements.

11 Post Balance Sheet Events

The Directors are proposing a final dividend in respect of the financial year ended 31 December

2025. See Note 28 of the Group Financial Statements for further details.

Following the announcement on 31 December 2025 confirming the completion of the

divestment of the Essential Home business and following shareholder approval of the General

Meeting held on 27 January 2026, the Group also returned £1.6 billion to shareholders on 20

February 2026 by way of special dividend of 235 pence per ordinary share.

With the aim of maintaining share price comparability before and after the special dividend, the

Group also completed a share consolidation on 2 February 2026, as a result of which

shareholders received 24 new ordinary shares with nominal value 10 5/12 pence for every 25

existing ordinary shares held. The new ordinary shares are traded on the London Stock Exchange

in the same way as the previously existing ordinary shares and carry the same rights which were

attached to the previously existing ordinary shares, as set out in the parent company’s articles of

association. After the share consolidation, the total number of ordinary shares in issue was

644,753,406.

In February 2026, the Company issued a guarantee on behalf of Reckitt Benckiser Treasury

Services plc in relation to an additional committed borrowing facility totalling £350 million which

expires after three years.

Notes to the Parent Company Financial Statements continued

Reckitt Annual Report and Accounts 2025

186

Strategic report Governance Financial statements Other information

Key: Registered address country different to country of registration

◊

Branch

12 Subsidiary and Other Related Undertakings

In accordance with section 409 of the Companies Act 2006 (CA 2006) and schedule 4 of The

Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, a full

list of related undertakings as at 31 December 2025 is disclosed below. All undertakings are

indirectly owned by Reckitt Benckiser Group plc, unless otherwise stated. All shares detailed

below are 100% owned, unless specified otherwise. The percentage held by the Group reflects

both the proportion of nominal capital and voting rights unless stated otherwise.

From time to time, management reviews the Group structure and seeks to remove redundant,

dormant or non-trading entities. During the year ended 31 December 2025, 15 legal entities were

dissolved or liquidated (2024: six legal entities). The removal of legal entities ultimately allows

management to focus on the core business, reduces compliance obligations and cost, and

improves transparency of the Group to external parties.

All subsidiary undertakings of Reckitt Benckiser Group plc are included in the consolidated

Financial Statements of the Group.

Reckitt completed the divestment of its Essential Home business on 31 December 2025. As part

of this transaction, several Reckitt subsidiaries were sold on that date and Reckitt no longer

retains any ownership interest in those entities. The Company retains an indirect interest in the

Essential Home business through a 30% equity stake.

Subsidiary Undertakings

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Australia

King & Wood Mallesons, ‘Governor Phillip Tower’ Level 61, 1 Farrer Place, Sydney NSW 2000,

Australia

Mead Johnson Nutrition (Australia) Pty Ltd Ordinary

Level 47, 680 George Street, Sydney NSW 2000, Australia

Reckitt Benckiser (Australia) Pty Limited Ordinary, Preference

Reckitt Benckiser Healthcare Australia Pty Limited Ordinary

SSL Australia Pty Ltd Ordinary, CRP

Austria

Guglgasse 15, 1110 , Vienna, Austria

Reckitt Benckiser Austria GmbH Ordinary

Bahrain

Building 330, Road 1506, Block 115, Bahrain International Investment Park, Hidd, Kingdom of

Bahrain, Bahrain

Reckitt Benckiser Bahrain W.L.L Ordinary

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Bangladesh

58-59 Nasirabad Industrial Area, Chittagong 4209, Bangladesh

Reckitt Benckiser (Bangladesh) PLC 82.96122751 Ordinary

Belarus

of. 166, 66, K Liebknekhta st., Minsk, 220036,

Belarus

Reckitt Benckiser BY LLC Charter capital

Belgium

Boulevard Industriel 13B , 1070 Bruxelles, Belgium

Reckitt Benckiser (Belgium) SA/NV Ordinary

Bermuda

Clarendon House, Church Street, Hamilton HM11, Bermuda

Suffolk Insurance Limited Common

Bolivarian Republic of Venezuela

Urb. Las Mercedes, Av. Orinoco cruce con Mucuchies Torre Nordic, Piso 1, Oficina 1 y 2, Municipio

Baruta Caracas, Bolivarian Republic of Venezuela

Mead Johnson Nutrition Venezuela, S.C.A. Common

Avenida Mara con Calle San José, Centro Comercial Macaracuay Plaza, Nivel C3, Locales 5 y

12. Urb. Colinas de la California, Caracas, Bolivarian Republic of Venezuela

Reckitt Benckiser Venezuela S.A. Ordinary

Brazil

Estrada Fukutaro Yida, n. 930, Bairro Cooperativa, Sao Bernardo Do Campo, Sao Paulo,

09852-060, Brazil

Apenas Boa Nutrição Indústria de Alimentos Ltda. Ordinary

Avenida Presidente Juscelino Kubitschek, 1.909, 24º andar, Parte D - Torre Norte - Condomínio

Sao Pau, Sao Paulo, 04543 907, Brazil

Mead Johnson do Brasil Comércio e Importação

de Produtos de Nutrição Ltda.

Ordinary

Reckitt Benckiser (Brasil) Comercial de Produtos

de Hygiene, Limpeza e Cosméticos Ltda.

Ordinary

Reckitt Benckiser Health Comercial Ltda Ordinary

Rodovia Raposo Tavares, 8015 km 18, 1º andar, Sala 2, Jardim Arpoador, Sao Paolo, CEP

05577-900, Brazil

Fenla Indústria, Comércio e Administração Ltda Ordinary

Subsidiary and Other Related Undertakings

Reckitt Annual Report and Accounts 2025

187

Strategic report Governance Financial statements Other information

Key: Registered address country different to country of registration

◊

Branch

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Reckitt Benckiser (Brasil) Ltda Ordinary

Est Dona Maria Jose Ferraz Prado, 1481, Armazém/Módulo 1, Chacaras Bartira, Embu, SP,

06845-070, Brazil

Reckitt Benckiser (Brasil) Comercial de Produtos

de Hygiene, Limpeza e Cosméticos Ltda. - Branch

Embu

Av Guarapari, 200, Galpões Dos Modulos 13 e 14, Cond Log Viana, Viana, Es, 29.136-344, Brazil

Reckitt Benckiser (Brasil) Comercial de Produtos

de Hygiene, Limpeza e Cosméticos Ltda. – Branch

Viana

Estrada Municipal Maria Margarida Pinto Dona Belinha, 742, Galpão 3, Bloco 1, Extrema, MG,

37642-558, Brazil

Reckitt Benckiser (Brasil) Comercial de Produtos

de Hygiene, Limpeza e Cosméticos Ltda. - Branch

Extrema

Rua Vereador Germano Luiz Vieira, 500, Armazém 3, Sala 17, Bairro Itaipava, Itajaí, Santa

Catarina, 88316-701, Brazil

Mead Johnson Do Brasil Comércio E Importação

De Produtos De Nutrição Ltda.

Rod Dom Gabriel Paulino Bueno Couto, 1606, Brazil

Reckitt Benckiser (Brasil) Ltda - Branch Itupeva

Avenida Caio Cotrim, 1100, Sala 11A, Mezanino, Bairro Itaqui, Itapevi, SP, 06696060, Brazil

Reckitt Benckiser Health Comercial Ltda.

Bulgaria

22 Zlaten rog Street, Floor 3, Office 4, District of Lozenets, City of Sofia, Bulgaria

Reckitt Benckiser Romania, representative office

Canada

1680 Tech Avenue, Unit 2, Mississauga ON L4W 5S9, Canada

Reckitt Benckiser (Canada) Inc. New (2018)

common

Suite 600, 1741 Lower Water Street, Halifax NS B3J 0J2, Canada

Mead Johnson Nutrition (Canada) Co. Common

Suite 2300, 550 Burard Street, Vancouver BC V6C 2B5, Canada

RB Health (Canada) Inc. Common

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Cayman Islands

PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands

Reckitt Benckiser (Cayman Islands) Limited Ordinary

Chile

Avenida Presidente Kennedy Lateral 5454, Oficina 1602, Vitacura, Región Metropolitana, Chile

Reckitt Benckiser Chile S.A. Ordinary

China

Ketian Aquatic Science and Technology Industrial Park, No. 3949 Kunlunshan Avenue, Lanzhou New

Area, Lanzhou City, Gansu Province, China

Lanzhou Keshi Xixili Healthcare Technologies Co. Ltd 80 Ordinary

No.1-13 Shangma, Aodong Road, High-tech Industrial Development Zone, Qingdao City,

Shandong Province, China

Qingdao London Durex Co., Limited Ordinary

Qingdao New Bridge Corporate Management

Consulting Company Limited

Ordinary

Room 1701, No. 1033, Zhao Jia Bang Road, Xuhui District, Shanghai, China

RB & Manon Business Co. Limited 90 Capital

contribution

Card 13, Building A3, Innovation and Entrepreneurship Center, No. 2 Shuguang Road, Xihu Street,

Jingzhou Economic and Technological Development Zone, Hubei, China

RB & Manon Business Co. Limited Jingzhou Branch

B01, Suite 401, Unit 2, No. 9 Dongdaqiao Road, Chaoyang District, Beijing, China

RB (China) Holding Co. Limited Capital

contribution

Room 101, 102, 103, 2F, 4F and 5F, Building No.43, No. 1015 Tianlin Road, Minhang District, Shanghai, China

RB (Shanghai) Technology Co., Ltd Ordinary

No. 99, Changjiang Da Road, Fuqiao Town, Taicang City, China

RB (Suzhou) Co. Ltd Capital

contribution

No. 3, Canglian 1 Road, ETDZ, Guangzhou, China

Reckitt & Colman (Guangzhou) Limited Ordinary

C6-8 Site 6F, No.333 Futexi Road, Waigaoqiao Free Trade Zone, Shanghai City, China

Reckitt Benckiser Home Chemical Products

Trading (Shanghai) Co. Limited

Ordinary

Subsidiary and Other Related Undertakings continued

Reckitt Annual Report and Accounts 2025

188

Strategic report Governance Financial statements Other information

Key: Registered address country different to country of registration

◊

Branch

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Room 1605, No.660 Shangcheng Road, Pudong District, Shanghai City, China

SSL Healthcare (Shanghai) Limited Ordinary

Room 2109, Floor 2, No.10 Chaoyangmenwai Street, Chaoyang District, Beijing City, China

Tai He Tai Lai Culture Communication Co Limited Ordinary

Unit 4205-4210, 42F, Gateway Building Hongqiao Road 3#, Xuhui District, Shanghai, China

RB (China) Holding Co. Ltd Shanghai Branch

Colombia

Cr 12 A # 78 - 40 Fifth Floor, Bogota, Colombia

RB (Health) Colombia S.A.S. Ordinary

Mead Johnson Nutrition Colombia Ltda. Ordinary

Carrera 6 #45-105, Cali, Colombia

Reckitt Benckiser Colombia S.A Ordinary

Costa Rica

San Jose-Escazu En Escazu Corporate Center, Setimo Piso, Costado Sur De Multiplaza Escazu,

Costa Rica

RBHCR Health Reckitt Costa Rica Sociedad

Anónima

Common

Reckitt Benckiser (Centroamérica) S.A. Ordinary

Croatia

Ulica Grada Vukovara 269d, 10 000 Zagreb, Hrvatska, Croatia

Reckitt Benckiser d.o.o. Ordinary

Cyprus

1 Lampousas Street, P.C. 1095, Nicosia, Cyprus

Gainbridge Investments (Cyprus) Limited Ordinary

Czech Republic

Vinohradská 2828/151, 130 00 Praha 3-Žižkov, Czech Republic

RB (Hygiene Home) Czech Republic, spol. s.r.o. Ordinary

Reckitt Benckiser (Czech Republic) spol. s.r.o. Partnership

interests

Denmark

Vandtårnsvej 83 A, 2860, Søborg, Denmark

RB Health Nordic A/S Ordinary

RB Health Nordic, NUF

RB Hygiene Home Nordic A/S Ordinary

RB Hygiene Home Nordic NUF

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Dominican Republic

Av. Winston Churchill No. 1099 Torre Acrópolis, Piso 12, Santo Domingo, República Dominicana

Mead Johnson Nutrition (Dominicana), S.A.

Ecuador

Av Coruña N27-88 y Orellana, Edificio Coruña Plaza 7mo Piso, Quito, 170150, Ecuador

RB Health Ecuador Cía. Ltda Ordinary

Oficina 4C, Av. 12 de Octubre, #26-48 y Orellana, Edificio Mirage, Piso 4, Quito, 170525, Ecuador

Reckitt Benckiser Ecuador S.A. Ordinary

Egypt

Polyom Building, 22 Off Road 90, Fifth District, Fifth Settlement, New Cairo, Cairo, Egypt

Reckitt Benckiser Egypt Limited Ordinary

Estonia

Harju maakond, Rae vald, Rae küla, Raeküla tee 5, 75310, Estonia

Reckitt Benckiser (Latvia) SIA Eesti filiaal

Finland

Itsehallintokuja 6, 02600 Espoo, Finland

RB Health Nordic A/S sivuliike Suomessa

RB Hygiene Home Nordic A/S, sivuliike Suomessa

France

38 rue Victor Basch- 91300 Massy, France

RB Holding Europe Du Sud SAS Ordinary

Reckitt Benckiser France SAS Ordinary

Reckitt Benckiser Healthcare France SAS Ordinary

102 rue de Sours, 28000, Chartres, France

Reckitt Benckiser Chartres SAS Ordinary

Germany

Heinestrasse 9, 69469, Weinheim, Germany

Kukident GmbH Common

Robert-Koch-Straße 1, 69115, Heidelberg,

Germany

Propack Produkte fur Haushalt und Korperpflege

GmbH

Ordinary

Reckitt Benckiser Global R&D GmbH Common

Subsidiary and Other Related Undertakings continued

Reckitt Annual Report and Accounts 2025

189

Strategic report Governance Financial statements Other information

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Darwinstrasse 2-4, 69115, Heidelberg, Germany

RB Hygiene Home Deutschland GmbH Capital

contribution

Reckitt & Colman Sagrotan

Verwaltungsgesellschaft GmbH

98.62068966 Common

Reckitt Benckiser Detergents GmbH Ordinary

Reckitt Benckiser Deutschland GmbH Common

Reckitt Benckiser Holding GmbH & Co KG Capital

contribution

Greece

7 Taki Kavalieratou Street, Kifissia, 145 64, Greece

Reckitt Benckiser Hellas Healthcare S.A. Ordinary

Guernsey

1st and 2nd Floors, Elizabeth House, Les Ruettes Brayes, St Peter Port, GY1 1EW, Guernsey

Reckitt Benckiser Holdings (Channel Islands) Limited Ordinary, Bonus

Hong Kong

Rooms 2206-11, 22 Floor, Chubb Tower, Windsor House, 311 Gloucester Road, Causeway Bay,

Hong Kong

London International Trading (Asia) Limited Ordinary

Reckitt Benckiser Hong Kong Limited Ordinary

Unit 2001, 20/F, Greenfield Tower Concordia Plaza, No. 1 Science Museum Road, Kowloon, Hong Kong

RB & Manon Business Limited 90 Ordinary

RB & Manon Hygiene Home Limited 80 Ordinary

Hungary

Bocskai út 134-146, Budapest, H-1113, Hungary

RB (Hygiene Home) Hungary Kft Ordinary

Reckitt Benckiser Kereskedelmi Kft Partnership interest

India

Unit No. 54, 5th Floor, Kalpataru Square, Andheri-Kurla Road, Andheri (East), Mumbai,

Maharashtra, 400059, India

Mead Johnson Nutrition (India) Private Limited Ordinary

Reckitt Piramal Private Limited 99.9999 Ordinary

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

DLF Cyber Park, 6th & 7th Floor (Tower C), 405 B, Udyog Vihar Phase III, Sector 20, Gurugram,

Haryana, 122016, India

Reckitt Benckiser (India) Private Limited Ordinary

Reckitt Benckiser Healthcare India Private Limited 99.999934 Ordinary

Indonesia

Treasury Tower 58th Floor, District 8, SCBD, Jalan Jendral Sudirman Kav 52-53, Jakarta, 12190,

Indonesia

PT Mead Johnson Indonesia Ordinary

PT Reckitt Benckiser Indonesia Ordinary

Jl. Raya Narogong, Chamber A.I, Kel. Pasirangin, Kec Cileungsi, Kab. Bogor. Provinsi. Jawa Barat,

16820, Indonesia

PT Reckitt Benckiser Trading Indonesia Ordinary

Islamic Republic of Iran

1st Floor, unit 11, No.88 Baran Building, Sayed Road, Opposite Mellat Park, Vali-e-Asr Avenue,

Tehran, Islamic Republic of Iran

Reckitt Benckiser Pars PJSC Ordinary

Ireland

c/o TMF Group, Ground Floor, Two Dockland Central, Guild Street, North Dock, Dublin, D01 K2C5,

Ireland

Dorincourt Holdings (Ireland) Limited Ordinary,

Ordinary-A

Reckitt Benckiser Ireland Limited Ordinary

Reckitt Benckiser Management Services

Unlimited Company

Ordinary-A, B, C, D,

E, F, G, H, I, J, K

Israel

6A Hangar Street, PO Box 6440, I.Z., Neve Nee’man B, Hod Hasharon, 457703, Israel

Reckitt Benckiser (Near East) Limited Ordinary

Italy

Via Spadolini 7, 20141, Milano, Italy

Reckitt Benckiser Healthcare (Italia) S.p.A. Ordinary

Reckitt Benckiser Holdings (Italia) S.r.l. Quotas

Reckitt Benckiser Italia SpA Ordinary

Key: Registered address country different to country of registration

◊

Branch

Subsidiary and Other Related Undertakings continued

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190

Strategic report Governance Financial statements Other information

Key: Registered address country different to country of registration

◊

Branch

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Japan

Sumitomo Fudosan Takanawa Park Tower 14F, 3-20-14 Higashi-Gotanda, Shinagawa-ku, Tokyo,

141-0022, Japan

Reckitt Benckiser Japan Ltd Ordinary

3-20-14 Higashi-Gotanda, Shinagawa-ku, Tokyo, 141-0022, Japan

Reckitt Benckiser Asia Pacific Limited

Jersey

IFC 5, St. Helier, JE1 1ST, Jersey

Reckitt & Colman (Jersey) Limited Ordinary

Reckitt & Colman Capital Finance Limited Ordinary-A,

Ordinary-B

Reckitt Benckiser Jersey (No.3) Limited Ordinary

Reckitt Benckiser Jersey (No.5) Limited Ordinary

Reckitt Benckiser Jersey (No.7) Limited Ordinary-A,

Redeemable

preference-class

A, D

44 Esplanade, St Helier, JE4 9WG, Jersey

SSL Capital Limited Ordinary

Kazakhstan

Bld. 15/A, Koktem-1, Almaty, 050040, Kazakhstan

Reckitt Benckiser Health Kazakhstan LLP Charter capital

Office 302, Building 15a, Koktem-1, Micro District,

Almaty City, Kazakhstan

Reckitt Benckiser Kazakhstan LLP Ordinary

Kenya

Plot 209/2462, Likoni Road, Nairobi, Kenya

Reckitt Benckiser East Africa Limited 99.98990909 Ordinary

14 Riverside Drive, Arlington Building, 3rd Floor, Nairobi, 209/19, Kenya

Reckitt Benckiser Health Kenya Limited Ordinary

Reckitt Benckiser Services (Kenya) Limited Ordinary

Latvia

Strēlnieku iela 1A - 2, Rīga, LV-1010, Latvia

Reckitt Benckiser (Latvia) SIA Ordinary

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Lithuania

Vilniaus m. sav. Vilniaus m. Olimpiečių g. 1A, Lithuania

Reckitt Benckiser (Latvia) SIA LT filialas

Luxembourg

1 Rue de la Poudrerie, Leudelange, L-3364, Luxembourg

Canterbury Square Holdings S.à.r.l Ordinary-A

RB Holdings (Luxembourg) S.à.r.l Ordinary-A

RB Holdings Luxembourg (2018) S.à.r.l Ordinary

Reckitt Benckiser Investments (No. 1) S.à.r.l Ordinary

Reckitt Benckiser Investments (No. 2) S.à.r.l Ordinary

Reckitt Benckiser Investments (No. 4) S.à.r.l Ordinary

Reckitt Benckiser Investments (No. 5) S.à.r.l Ordinary

Reckitt Benckiser Investments (No. 7) S.à.r.l Ordinary

Reckitt Benckiser Investments (No. 8) S.à.r.l Ordinary

Reckitt Benckiser S.à.r.l. Ordinary-A

Reigate Square Holdings S.à.r.l. Ordinary

Reckitt Benckiser N.V.

Reckitt Benckiser Holdings (USA) Limited

Malaysia

Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights

50490, Wilayah Persekutuan, Kuala Lumpur, Malaysia

Mead Johnson Nutrition (Malaysia) Sdn Bhd Ordinary

RB (Health) Malaysia Sdn Bhd Ordinary

Reckitt Benckiser (Malaysia) Sdn Bhd Ordinary

Mexico

Av. Ejercito Nacional, 769, Piso 6, Col. Granada, Del. Miguel Hidalgo, Mexico City, 11570, Mexico

Mead Johnson Nutricionales de México, S. de R.L.

de C.V.

Ordinary-fixed/

variable

RB Health Services, S.A. de C.V. Ordinary-fixed/

variable

Reckitt Benckiser Mexico, S.A. de C.V. Ordinary-fixed/

variable

Servicios Nutricionales Mead Johnson S.de R.L. de

C.V.

Ordinary-fixed/

variable

Subsidiary and Other Related Undertakings continued

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191

Strategic report Governance Financial statements Other information

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Av de las Granjas 972, Col. Santa Barbara, Azcapotzalco, CDMX, 02230, Mexico

Manufactura MJN, S. de R.L. de C.V. Ordinary-fixed/

variable

Calzada de Tlalpan No. 2996, Col. Ex Hacienda Coapa, Del. Coyoacán, Cd. de México, C.P.

04980, Mexico

RB Salute Mexico S.A. de C.V. Ordinary-fixed/

variable

Circuito Dr Gustavo Baz, 7, No. 7, Fracc Industrial El Pedregal, Atizapan de Zaragoza, Edomex,

Mexico

Reckitt Benckiser Services S.A. de C.V. Ordinary-fixed/

variable

Av. Ejército Nacional No.769, Corporativo Miyana Torre B, Piso 6, Alcaldía Miguel Hidalgo,

ColoniaGranada, CP 11520, Mexico

RB Health México, S.A. de C.V. Ordinary-fixed/

variable

Morocco

59 Boulevard Zerktouni, Residence Les Fleurs 6eme étage, Casablanca, Morocco

Reckitt Benckiser Morocco SARL/AU Ordinary

Netherlands

Siriusdreef 14, 2132 WT, Hoofddorp, Netherlands

MJN Innovation Services B.V. Ordinary

RB NL Brands B.V. Ordinary

Reckitt Benckiser Brands Investments B.V. Ordinary

Reckitt Benckiser Finish B.V. Ordinary

Reckitt Benckiser Healthcare B.V. Ordinary

Reckitt Benckiser Laundry Detergents (No. 2) B.V. Ordinary

Reckitt Benckiser N.V. Ordinary

Reckitt Benckiser Tiret B.V. Ordinary

Reckitt Benckiser Vanish B.V. Ordinary

Schiphol Boulevard 267 1118BH Schiphol, Netherlands

Beleggingsmaatschappij Lemore B.V. Ordinary

Central Square Holding B.V. Ordinary

Grosvenor Square Holding B.V. Ordinary

Hamol NL B.V. Ordinary

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Maddison Square Holding B.V. Ordinary

MJN Global Holdings B.V. Ordinary

MJN Holdings (Netherlands) B.V. Ordinary

New Bridge Holdings B.V. Ordinary

RB LATAM Holding B.V. Ordinary

Reckitt Benckiser (ENA) B.V. Ordinary

Reckitt Benckiser (South America) Holding B.V. Ordinary

Reckitt Benckiser (Spain) B.V. Ordinary

Reckitt Benckiser Treasury Services (Nederland)

B.V.

Ordinary

New Zealand

Level 2 AIA House, Smales Farm 74 Taharoto Road, Takapuna, Auckland, 0622, New Zealand

Reckitt Benckiser (New Zealand) Limited Ordinary

SSL New Zealand Limited Ordinary

Nigeria

11th Floor Heritage Place, 21 Lugard Avenue Ikoyi, Lagos State, Nigeria

Reckitt Benckiser Nigeria Limited Ordinary

Pakistan

Tenancy 04 & 05, 3rd Floor, Corporate Office Block, Dolmen City, HC, Block 4, Scheme 5, Clifton,

Karachi, 75600, Pakistan

Reckitt Benckiser Pakistan Limited 98.68464476 Ordinary

Panama

Apartment 6G, 6th Floor, Edificio Bladex, Calle Avenida La Rotonda. Business Park, Corregimiento

de Juan Diaz, Urbanización Costa Del Este, Provincia De Panamá, Distrito de Panama, Panama

Mead Johnson Nutrition (Panama), S.de R.L. Ordinary

Peru

Calle Dean Valdivia No. 148, Torre 1, Ofic. 501, Urb. Jardín, San Isidro, Lima, Peru

RB Health Peru S.R.L Ordinary

Calle Dean Valdivia Nro. 148 Int., 502 Urb. Jardín, (Edificio Platinum Plaza Torre I) San Isidro,

Lima, Peru

Reckitt Benckiser Peru S.A. Ordinary

Key: Registered address country different to country of registration

◊

Branch

Subsidiary and Other Related Undertakings continued

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192

Strategic report Governance Financial statements Other information

Key: Registered address country different to country of registration

◊

Branch

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Philippines

2309 Don Chino Roces Avenue Extension, Makati City, PH 1321, Philippines

2309 Realty Corporation 37.998 Ordinary-A,

Ordinary-B

Mead Johnson Nutrition (Philippines), Inc. 99.99964222 Ordinary

Sphinx Holdings Company, Inc. 32.8125 Common,

Preference

3rd Floor Mead Johnson Nutrition Philippines Inc., 2309 Don Chino Roces Extension, Makati City,

1231, Philippines

Reckitt Benckiser Healthcare (Philippines), Inc. 99.9978 Common,

Preference

Poland

Wołoska 22, 02-675, Warsaw, Poland

Mead Johnson Nutrition Trading Poland Sp z.o.o. Partnership

interests

Reckitt Business Services sp. z.o.o. Partnership

interests

Nowy Dwór Mazowiecki, Ul. Okunin 1, 05-100, Poland

RB (Hygiene Home) Poland Sp. z.o.o. Ordinary

Reckitt Benckiser (Poland) S.A. Ordinary

Reckitt Benckiser Production (Poland) SP Z.o.o. Ordinary

Portugal

Rua D. Cristóvão da Gama, n.º 1, 1º, C/D, 1400-116, Lisboa, Portugal

Reckitt Benckiser Healthcare, Unipessoal Lda Quotas

Puerto Rico

Los Frailes Industrial Park, Ave. Esmeralda, Calle C # 475, Guaynabo, 00969, Puerto Rico

MeadJohnsonNutrition(PuertoRico)Inc.

Republic of Korea

24th Floor, Two IFC, 10 Gukjegeumyung-ro, Youngdeungpo-gu, Seoul, 07326, Republic of Korea

Oxy Reckitt Benckiser LLC Capital

contribution

Romania

Iancu de Hunedoara Boulevard, Nr. 48, 12th Floor, Crystal Tower Building, 1st District, Bucharest,

011745, Romania

RB (Hygiene Home) Romania S.R.L Ordinary

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Iancu de Hunedoara Boulevard, Nr. 48, 11th Floor, Crystal Tower Building, 1st District, Bucharest,

011745, Romania

Reckitt Benckiser (Romania) S.R.L Partnership

interests

Russian Federation

3rd Floor, 4 Shluzovaya emb., Zamoskvorechye Municipal district, Moscow, 115114, Russian

Federation

Reckitt Benckiser Healthcare LLC Charter capital

Reckitt Benckiser IP LLC Charter capital

Reckitt Benckiser LLC Charter capital

Klin City, Tereshkovoy Street, 1, 14160052 /1, Moscow Region, Russian Federation

Branch of Reckitt Benckiser LLC in city Klin,

Moscow Region, Russia

Saudi Arabia

Office number 51, Fifth floor, Mukmal Plaza Center, Al Hamra District Palestine Street, Jeddah

City, Saudi Arabia

Reckitt Sanabil for Trading Co LLC 51.00000036 Ordinary

Singapore

12 Marina Boulevard, #19-01 Marina Bay Financial Centre, 018982, Singapore

Mead Johnson Nutrition (Asia Pacific) Pte. Ltd. Ordinary

Mead Johnson Nutrition (Singapore) Pte. Ltd. Ordinary

Mead Johnson Nutrition Holdings (Singapore) Pte. Ltd.

Ordinary

Reckitt Benckiser (Singapore) Pte. Ltd Ordinary

138 Cecil Street, #13-02 Cecil Court, 069538, Singapore

RB & Manon Business Limited Singapore Branch

Slovakia

Drieňová 3, 821 08 Bratislava, Slovakia

RB (Hygiene Home) Slovakia spol. s.r.o. Ordinary

Reckitt Benckiser (Slovak Republic), spol s.r.o. Partnership

interests

South Africa

Ground Floor, North Wing, Allandale Building, 39 Magwa Crescent, Waterfall City, Midrand,

Gauteng, 2090, South Africa

Reckitt Benckiser Pharmaceuticals (Proprietary)

Limited

Ordinary

Subsidiary and Other Related Undertakings continued

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193

Strategic report Governance Financial statements Other information

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Reckitt Benckiser South Africa Health Holdings

(Pty) Limited

Ordinary

Spain

Carrer de Mataró, 28, 08403, Granollers, Barcelona, Spain

Norwich Square Holdings S.L.U. Ordinary

RB Square Holdings (Spain) S.L. Ordinary-A,

Ordinary-B

Passeig de Gracia 9, 08007, Barcelona, Spain

Reckitt Benckiser Healthcare S.A.U. Class A, Class B

Sri Lanka

No.25, Shrubbery Garden, COLOMBO-04, Sri

Lanka

Reckitt Benckiser (Lanka) Limited 99.99905658 Ordinary

Sweden

c/o Convendum Stockholm City AB, Västra Järnvägsgatan 3, 11164 Stockholm, Sweden PO Box

815 - 101 36 Stockholm, Sweden

RB Health Nordic A/S, filial

RB Hygiene Home Nordic A/S, filial

SSL Healthcare Sverige AB Ordinary

Switzerland

Richtistrasse 5, 8304 Wallisellen, Switzerland

Reckitt Benckiser (Switzerland) AG Ordinary

Reckitt Benckiser AG Ordinary

Taiwan

8 of 6F, No. 205, Section 1, Dunhua South Road, Da'an District, Taipei, Taiwan (Province of China)

RB&ManonBusinessLimitedTaiwanBranch

Room A, 4 F, No 2, Sec. 3, Minsheng E. Road, Zhongshan District, Taipei, 10491, Taiwan

Reckitt Benckiser Hong Kong Limited Taiwan

Branch

Thailand

No. 388 Exchange Tower, 14th Floor, Sukhumvit Road, Klongtoey, Bangkok, TH 10110, Thailand

Mead Johnson Nutrition (Thailand) Ltd Common

Reckitt Benckiser (Thailand) Limited 99.99 Ordinary

Reckitt Benckiser Holding (Thailand) Limited 45 Common,

Preference

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

65 Moo 12 Lardkrabang-Bangplee Road, Bangplee Yai District, Bangplee, Samutprakarn, 10540,

Thailand

Reckitt Benckiser Healthcare Manufacturing

(Thailand) Limited

Ordinary

100 Moo 5, Bangsamak Sub-District , Bangpakong District, Chachoengsao Province 24180, Thailand

SSL Manufacturing (Thailand) Limited Ordinary-A,

Ordinary-B

Turkey

Orta Mahallesi Demokrasi Cad. Benckiser Sit. No: 92, Tuzla, Istanbul, Turkey

Reckitt Benckiser Ev ve Hijyen Ürünleri A.Ş. Capital

contribution

Esentepe Mah. Büyükdere Cad. Tekfen Blok No: 209 İç Kapi No: 2 Şişli, Istanbul, Turkey

Reckitt Benckiser Temizlik Malzemesi Sanayi ve

Ticaret A.S.

Capital

contribution

Reckitt Benckiser Ev ve Hijyen Ürünleri Anonim

Şirketi Levent Şubesi

Ukraine

28A Stepana Bandery, Bld.G, Office 80, Kiev, 04073, Ukraine

Reckitt Benckiser Household and Health Care

Ukraine LLC

Charter capital

Reckitt Benckiser Hygiene Home Ukraine LLC Charter capital

United Arab Emirates

Level 27, Tower B, JAFZA One, Jebel Ali Free Zone, Dubai, PO Box 16834, United Arab Emirates

RB Hygiene Home Arabia FZE Ordinary

Reckitt Benckiser Arabia FZE Ordinary

Unit 05, Level 3, Gate Village Building 04, Dubai Investment Financial Centre, PO BOX 677,

United Arab Emirates

RB Investment Company Limited 0.5 Ordinary-A,

Ordinary-B

Al Seer Corporate Office, Behind Al Tayer Motors, Sheikh Zayed Road, Al Quoz Industrial Area 3,

Dubai, 31587, United Arab Emirates

Reckitt Benckiser Arabia Trading LLC 48.68715084 Ordinary

309, Floor 3, Dubai Science Park Laboratory Complex, Dubai, United Arab Emirates

Reckitt Benckiser Arabia

Office 1801, 1803, 1804, Emaar Real Estate Burj Khalifa, Dubai, United Arab Emirates

Reckitt Benckiser (RUMEA) Limited-Dubai Branch

Key: Registered address country different to country of registration

◊

Branch

Subsidiary and Other Related Undertakings continued

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194

Strategic report Governance Financial statements Other information

Key: Registered address country different to country of registration

◊

Branch

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

United Kingdom

103-105 Bath Road, Slough, Berkshire, SL1 3UH, United Kingdom

103-105 Bath Road Limited Ordinary

Access VC Limited Ordinary

Crookes Healthcare Limited Ordinary, Bonus

Cupal, Limited Ordinary, Bonus

Dakin Brothers Limited Ordinary, Bonus

Durex Limited Ordinary

eRB Trading Limited Ordinary

Glasgow Square Limited Ordinary, Bonus

Green, Young & Company Limited Ordinary, Bonus

Hamol Limited Ordinary, Bonus

Howard Lloyd & Company Limited Ordinary

LI Pensions Trust Limited Ordinary

Linden Germany A Limited Ordinary

Linden Germany B Limited Ordinary

Lloyds Pharmaceuticals Euro ordinary

shares, Bonus,

Ordinary

London International Group Limited Ordinary, 'B'

LRC Products Limited Ordinary

LRC Secretarial Services Limited Ordinary

MJ UK Holdings Limited Ordinary

MJN International Holdings (UK), Ltd. Ordinary

Nurofen Limited Ordinary

Optrex Limited Ordinary

Pharmalab Limited Ordinary, Bonus

R&C Nominees Limited Ordinary

R&C Nominees One Limited Ordinary

R&C Nominees Two Limited Ordinary

RB (China Trading) Limited Ordinary, Class A

RB Asia Holding Limited Ordinary

RB Holdings (Nottingham) Limited Ordinary, Bonus

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

RB Luxembourg (2016) Limited Ordinary

RB Luxembourg Holdings (TFFC) Limited Ordinary

RB Mexico Investments Limited Ordinary

RB Reigate (2019) Ltd. Ordinary

RB Reigate (UK) Limited Ordinary, Bonus

RB UK Commercial Limited Ordinary

RB USA (2019) Ltd. Ordinary

Reckitt & Colman (Overseas) Health Limited Ordinary, Bonus

Reckitt & Colman (UK) Limited Ordinary,

Irredeemable

cumulative

preference shares

Reckitt & Colman Holdings Limited Ordinary, Bonus

Reckitt & Colman Pension Trustee Limited Ordinary

Reckitt & Sons Limited Ordinary

Reckitt Benckiser (Brands) Limited Ordinary

Reckitt Benckiser (Grosvenor) Holdings Limited Ordinary, Bonus

Reckitt Benckiser (Health) Holdings Limited Ordinary

Reckitt Benckiser (Hygiene Home) Holdings

Limited

Ordinary

Reckitt Benckiser (RUMEA) Limited Ordinary

Reckitt Benckiser (USA) Limited Ordinary

Reckitt Benckiser Asia Pacific Limited Ordinary

Reckitt Benckiser Corporate Services Limited Ordinary

Reckitt Benckiser Expatriate Services Limited Ordinary

Reckitt Benckiser Finance (2005) Limited Ordinary, Bonus

Reckitt Benckiser Finance (2007) Ordinary

Reckitt Benckiser Finance (2010) Limited Ordinary, Bonus

Reckitt Benckiser Finance Company Limited Ordinary

Reckitt Benckiser Group plc Ordinary

Reckitt Benckiser Health Limited Ordinary

Reckitt Benckiser Healthcare (Central & Eastern

Europe) Limited

Ordinary

Reckitt Benckiser Healthcare (CIS) Limited Ordinary

Subsidiary and Other Related Undertakings continued

Reckitt Annual Report and Accounts 2025

195

Strategic report Governance Financial statements Other information

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Reckitt Benckiser Healthcare (UK) Limited Ordinary

Reckitt Benckiser Healthcare International Limited Ordinary

Reckitt Benckiser Holdings (Luxembourg) Limited Ordinary, Bonus

Reckitt Benckiser Holdings (Overseas) Limited Ordinary

Reckitt Benckiser Holdings (TFFC) Limited Ordinary, Bonus

Reckitt Benckiser Holdings (USA) Limited Ordinary

Reckitt Benckiser Investments Limited Ordinary, Bonus

Reckitt Benckiser Limited Ordinary

Reckitt Benckiser Luxembourg (2010) Limited Ordinary

Reckitt Benckiser Luxembourg (No.2) Limited Ordinary

Reckitt Benckiser Luxembourg (No.3) Limited Bonus

Reckitt Benckiser Luxembourg (No.4) Limited Bonus

Reckitt Benckiser Service Bureau Limited Ordinary

Reckitt Benckiser Treasury (2007) Limited Ordinary-B

Reckitt Benckiser Treasury Services plc Ordinary

Reckitt Benckiser Treasury Services (Nederland) B.V.

Reckitt Benckiser USA Finance (No.1) Limited Ordinary

Reckitt Benckiser USA Finance (No.2) Limited Ordinary

Reckitt Benckiser USA Finance (No.3) Limited Ordinary

Reckitt Colman Chiswick (OTC) Limited Bonus

Reckitt Seton Limited Ordinary,

Convertible,

Cumulative

preference

Reckitt Sonet (UK) Limited Ordinary

Reckitt UK Holdings Limited Ordinary-A,

Non-qualified

preferred

Sonet Consumer Products Limited Ordinary

Sonet Dormant Company No.1 Limited Ordinary, Deferred

Sonet Investments Limited Ordinary, Bonus

Sonet Overseas Investments Limited Ordinary, Bonus

Sonet Prebbles Limited Ordinary

Sonet Products Limited Ordinary

SSL (RB) Products Limited Ordinary

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

SSL International plc Ordinary

SSL Products Limited Bonus

Tubifoam Limited Ordinary, Bonus

W.Woodward, Limited Ordinary

Reckitt Benckiser Holdings (Channel Islands)

Limited

Reckitt Benckiser Jersey (No.3) Limited

Reckitt Benckiser Jersey (No.5) Limited

Reckitt Benckiser USA (2010) LLC

Reckitt Benckiser USA (2013) LLC

Founders Factory (Level 7) Arundel Street Building, 180 Strand, 2 Arundel Street, London,

England, WC2R 3DA, United Kingdom

FF Homecare & Hygiene Limited 75 Ordinary

United States

399 Interpace Parkway, Parsippany, New Jersey, NJ 07054-1115, USA

Biofreeze IP Holdings, LLC Common

Blisa, L.L.C. Ordinary

Exponential Health LLC Ordinary

Lanai Holdings 1.5, Inc. Common

Mead Johnson Nutrition (Dominicana) S.A. Ordinary

Mead Johnson Nutrition (Puerto Rico) Inc. Ordinary

Mead Johnson Nutrition (Venezuela) LLC Ordinary

Mead Johnson Nutrition Nominees LLC Membership

interest

MJ USA Holdings LLC Ordinary

MJN Asia Pacific Holdings LLC Ordinary

MJN U.S. Holdings LLC Ordinary

RB Health (US) LLC Ordinary

RB Health Manufacturing (US) LLC Ordinary

Reckitt Health Pain (US) LLC Ordinary

TheraPearl LLC Ordinary

Corporation Service Company, 251 Little Falls Drive, Wilmington, New Castle County DE 19808,

United States

LRC North America Inc. Common,

Preference

Key: Registered address country different to country of registration

◊

Branch

Subsidiary and Other Related Undertakings continued

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196

Strategic report Governance Financial statements Other information

Key: Registered address country different to country of registration

◊

Branch

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Mead Johnson Nutrition Venezuela SCA

RB Manufacturing LLC Ordinary

RB USA Holdings LLC Ordinary

Reckitt Benckiser LLC Ordinary

Reckitt Benckiser USA (2010) LLC Ordinary

Reckitt Benckiser USA (2012) LLC Membership

Reckitt Benckiser USA (2013) LLC Ordinary

Reckitt US Holdings LLC Membership

SSL Holdings (USA) Inc. Ordinary

2400 W. Lloyd Expressway, Evansville IN 47721, United States

Mead Johnson & Company, LLC Membership

Mead Johnson Nutrition Company Ordinary

225 North Canal Street, Floor 25, Chicago IL 60606, United States

Mead Johnson One C.V. Membership

interest

Mead Johnson Two C.V. Membership

interest

Princeton South Corporate Center, Suite 160, 100 Charles Ewing Boulevard, Ewing, NJ 08628,

United States

Reckitt Urban Renewal LLC Membership

Vietnam

Unit 401, 4th Floor, Metropolitan Building, No. 235 Dong Khoi Street, Ben Nghe Ward, District 1, Ho

Chi Minh City, Vietnam

Mead Johnson Nutrition (Vietnam) Company

Limited

Capital

contribution

Suite 402, 4th Floor, No. 235 Dong Khoi Street, Ben Nghe Ward, District 1, Ho Chi Minh City,

Vietnam

The Representative Office of Reckitt Benckiser

(Thailand) Ltd in Ho Chi Minh City

Other Related Undertakings

Entity name Key

Overall % owned by

Group, if not 100% Share class name(s)

Netherlands

Lavender Dutch TopCo B.V. 30 Ordinary-B

Subsidiary and Other Related Undertakings continued

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197

Strategic report Governance Financial statements Other information

Subsidiary audit exemptions

The following subsidiary undertakings are exempt from the requirements under section 479A of

the CA 2006 relating to the audit of their individual accounts, as Reckitt Benckiser Group plc has

guaranteed them under section 479C of the CA 2006.

Company Company number

103-105 Bath Road Limited 7415344

Access VC Limited 12057280

eRB Trading Limited 12729353

Howard Lloyd & Company, Limited 124747

London International Group Limited 488344

MJ UK Holdings Limited 10698251

MJN International Holdings (UK), Limited 10773207

Optrex Limited 301618

R&C Nominees Limited 3646801

RB Holdings (Nottingham) Limited 4367123

RB Luxembourg Holdings (TFFC) Limited 8963782

RB Mexico Investments Limited 10141275

RB Reigate (2019) Ltd 10952298

RB USA (2019) Ltd 10996097

Reckitt & Colman (Overseas) Health Limited 11636337

Reckitt & Colman (UK) Limited 341605

Reckitt & Sons Limited 561576

Reckitt Benckiser (Grosvenor) Holdings Limited 5698731

Reckitt Benckiser (Health) Holdings Limited 11061440

Reckitt Benckiser (Hygiene Home) Holdings Limited 11061572

Reckitt Benckiser (RUMEA) Limited 8496512

Reckitt Benckiser Asia Pacific Limited 05184356

Reckitt Benckiser Finance Company Limited 4749202

Reckitt Benckiser Healthcare (Central & Eastern Europe) Limited 3368448

Reckitt Benckiser Healthcare (CIS) Limited 3376759

Reckitt Benckiser Holdings (Luxembourg) Limited 05291721

Company Company number

Reckitt Benckiser Holdings (Overseas) Limited 4617051

Reckitt Benckiser Holdings (USA) Limited 4906543

Reckitt Benckiser Luxembourg (2010) Limited 7323959

Reckitt Benckiser Service Bureau Limited 3605068

Reckitt Benckiser Treasury (2007) Limited 6365837

Reckitt Benckiser USA Finance (No.1) Limited 4902703

Reckitt Benckiser USA Finance (No.2) Limited 4902747

Reckitt Benckiser USA Finance (No.3) Limited 4902776

Reckitt Colman Chiswick (OTC) Limited 593046

Reckitt Seton Limited 1914860

Reckitt Sonet (UK) Limited 2285039

Sonet Dormant Company No.1 Limited 220272

Sonet Overseas Investments Limited 3671350

SSL Products Limited 1026788

Key: Registered address country different to country of registration

◊

Branch

Subsidiary and Other Related Undertakings continued

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198

Strategic report Governance Financial statements Other information

Listing Rule 9.8.6R Compliance

Statement

Reckitt plc complies with sections 414CA and

414CB of the Companies Act 2006, and the

requirements of LR 9.8.6R by including material

climate-related financial disclosures in this

section (and by reference as indicated),

consistent with the Task Force on Climate-

related Financial Disclosures (TCFD)

recommendations. Our disclosures align with all

TCFD recommendations and recommended

disclosures.

In addition to these disclosures, we report

environmental performance and greenhouse

gas (GHG) emissions on page 44. Potential

financial impacts of climate change are

considered in scenario modelling within our

Viability Statement (page 52) and impairment/

intangibles note (page 137). Further detail on

scenario modelling is available in our Basis of

Reporting Criteria at reckitt.com/reporting-

hub. The Financial Conduct Authority (FCA)

has signalled a transition from TCFD to

UK-endorsed IFRS S2 (UK SRS); our approach is

designed to remain consistent with both TCFD

2021 and IFRS S2.

Governance

(a) Board oversight

The Board holds ultimate responsibility for

overseeing Reckitt’s ESG strategy, including

climate-related risks and opportunities, as

defined in its terms of reference (Schedule of

Matters Reserved for the Board). Through

regular review and monitoring, the Board

ensures the integrity of the Group’s corporate

responsibility, sustainability, ethics and

compliance strategies, policies and

programmes.

ESG and climate matters are discussed by the

Board at least biannually and more frequently,

as required, alongside an annual review of

Reckitt’s Sustainability Ambitions. Progress

against ESG and climate targets is regularly

monitored, with the most recent review

taking place at the November 2025 meeting.

As part of its annual assessment of principal

and emerging risks, the Board considers

sustainability and climate-related risks,

focusing on ESG performance and evolving

climate reporting regulations.

The Audit Committee supports the Board

through its oversight of risk management and

internal control systems, including the

assurance framework established by

management to identify and monitor risks.

See pages 57-64 for more detail on our

governance framework and mechanisms and

Board activities during the year

(b) Management’s role

The Chief Executive Officer (CEO) is

accountable for sustainability performance at

the executive level, including climate-related

matters and the approval of any new

sustainability and climate-related targets. The

CEO chairs the Group Executive Committee

(GEC), which oversees Reckitt’s strategic and

operational management, ensuring

collaboration across functions and markets.

The GEC recommends and implements

strategy and related budgets as approved by

the Board, drives business and cultural

transformation, reviews business performance

and approves major investments. It also

ensures that sustainability is embedded within

business operations.

Our Sustainability Ambitions are delivered

through the GEC and the wider management

team, which ensures appropriate action plans

and investment are in place. While the

Sustainability team sits within the Supply

function, it leads sustainability strategy

development and compliance across the

organisation, with strategic direction agreed

at the GEC. Programmes to achieve

operational, product and value chain targets

are implemented by our Brands, Supply Chain,

R&D, Safety, Quality, Regulatory and

Compliance teams.

Environmental performance is monitored

through monthly reporting at site and regional

levels. Progress against targets is reviewed

monthly at supply chain leadership forums and

quarterly through functional and global business

risk reviews, enabling proactive management

and response to emerging issues.

Executive ownership of ESG transition risk as a

principal risk resides with the CEO and the

Chief Supply Officer. Supporting these formal

structures are cross-functional steering

committees that provide governance and

oversight of key transition risks and sustainable

product initiatives.

As the reporting landscape continues to

evolve, the GEC is actively preparing for future

disclosure requirements under emerging

legislation. Key priorities include major

European Union initiatives such as Corporate

Sustainability Reporting Directive (CSRD), EU

Taxonomy and the EU Green Deal. In addition,

Reckitt is actively reviewing local disclosure

frameworks, including AASB S2 – Climate-

related Financial Disclosures and California’s

Climate-Related Financial Risk Act (SB 261).

Risk management

Our risk management framework provides a

consistent and structured approach to risk

management across the organisation. It sets

out clear principles, standards and

accountabilities, guiding behaviour and

ensuring risks are escalated and managed by

the right people at the right level and at the

right time. This enables decisions to be taken

confidently and at pace.

Our Group risk management and reporting

process is designed to be practical,

proportionate and effective, supporting

business operations while enabling

management and the Board to fulfil their

duties under the UK Corporate Governance

Code. This process ensures that risks are

appropriately prioritised and resources are

focused on the areas of greatest significance.

Our Group Risk team, part of the wider internal

audit and risk function, facilitates the process.

This includes coordinating risk identification

across functions and business areas,

consolidating the Group view of principal risks,

supporting senior engagement and sign-off,

and reporting to the Board and its Committees.

The Group’s risk profile is reviewed biannually

and prioritised based on impact, likelihood and

speed of impact, reflecting the time available

to respond should a risk materialise. The output

of this process informs the Viability Statement.

In 2025, we undertook a robust double

materiality assessment (DMA) to reassess

climate-related impacts, risks and

opportunities across our value chain. Building

on the work completed in 2024, the 2025

assessment aligns with the updated European

Sustainability Reporting Standards (ESRS)

requirements brought about by the EU

Omnibus and considered the climate scenario

risk model analysis as part of the scoring

criteria. The updated DMA reconfirmed climate

remains a material topic for Reckitt.

ESG transition risk, which includes climate-

related impacts, is recognised as a principal

risk, reflecting its significance and central role

in Reckitt’s growth strategy. We manage this

risk by embedding sustainability strategy and

targets within R&D and supply chain

operations, through customer-facing

programmes and partnerships, product

innovation and initiatives focused on

decarbonisation, packaging, ingredient

management and sustainable sourcing.

Further details on the Group’s risk management

approach and updates during the year can be

found on page 48

Climate-Related Financial Disclosures

Reckitt Annual Report and Accounts 2025

199

Strategic report Governance Financial statements Other information

Scenario analysis and tools

Our approach to assessing climate-related

risks and opportunities is grounded in robust

scenario analysis. To understand long-term

impacts and emerging risks, we leverage

advanced climate and enterprise analytics

technology from Risilience™, built on

frameworks developed by the Cambridge

Centre for Risk Studies, to generate

quantitative insights that inform risk

management and strategic decision making

across the Group. This digital twin of our

Business integrates financial, operational,

emissions and raw material data, enabling us

to assess multiple climate scenarios. This

enhances our corporate risk management

processes by addressing business continuity

risks associated with extreme weather events

and other climate-related factors.

Our analysis provides:

• quantitative earnings value at risk over 5-

and 10-year horizons; and

• qualitative risk outlook up to 20 years.

In 2025, we updated our transition risk models,

moving from Shared Socioeconomic Pathways

(SSP) to scenarios published by the Network

for Greening the Financial System (NGFS). This

change ensures alignment with leading

financial disclosure standards. Physical risk

models continue to be based on SSP

frameworks.

i. Scenarios used

We model five scenarios combining SSP for

physical risks and NGFS scenarios for transition

risks:

• Physical risks (SSP based):

– SSP1-1.9 (≈1.5°C – Paris Ambition): Rapid

global decarbonisation and strong

international cooperation

– SSP3-7.0 (≈3°C – Current Policy): Limited

climate action and high emissions, leading

to severe physical risks

• Transition risks (NGFS based):

– Orderly Transition: Early, coordinated

policy action and technological progress

– Disorderly Transition: Delayed or uneven

policy implementation, abrupt

adjustments and market volatility

– Hot House World: Minimal climate policy

action, continued fossil fuel reliance and

severe physical risks

Scenario analysis is inherently uncertain due to

evolving policy, technology and consumer

behaviour. Our approach focuses on plausible

futures and their implications for our Business.

See our Basis of Reporting Criteria for detail on

the modelled pathways used at reckitt.com/

reporting-hub

ii. Risk types considered

We have modelled the below potential risk

impacts. Financial impacts are modelled by

region, product, facility and hazard type. For

disclosure, results are aggregated at Group

level and expressed as ranges to reflect

uncertainty.

• Policy risk (carbon pricing, regulation)

• Consumer sentiment risk (consumer

preference shifts)

• Technology risk (asset impairment)

• Liability risk (litigation, compliance penalties)

• Investor sentiment risk (capital allocation,

divestment)

• Reputation risk (activism, boycotts)

We have modelled physical risks to the value

chain, including disruption to our direct and

indirect operations and the supply of natural

raw materials. The physical risks models were

based on:

• acute (extreme weather events causing

facility disruption); and

• chronic (temperature and precipitation

changes affecting raw material supply).

Monitoring emerging risks

We actively monitor evolving policy and

regulatory frameworks, fiscal measures and

climate-related litigation trends. This includes

tracking taxation impacts and disclosure

requirements across key markets. Throughout

the year, we reviewed climate-related risks to

identify new or emerging issues and reassessed

the impact of existing risks. Transition risk models

were updated to reflect NGFS scenarios,

ensuring consistency with global best practices.

The key risks assessed included: transition risks,

such as shifts in consumer sentiment, policy,

investor sentiment and reputation; and physical

risks, such as the increased frequency and

severity of extreme weather events. Further

detail on these risks is provided in the Climate

Scenario Analysis sections below.

Overall impact

Our climate scenario analysis shows a slight

year-on-year decrease in climate-related risk

exposure. Scenario modelling was conducted

on Reckitt Group results over a five-year

forecast period. The recent sale of the

Essential Home business has influenced

forecast earnings for this period. Overall, the

results indicate that both transition and

physical risks remain immaterial to Reckitt. We

will continue to monitor these scenarios to

ensure proactive risk management.

Strategy

We remain committed to delivering our

science-based targets and achieving net zero

by 2040. In line with the Science Based

Targets initiative (SBTi) requirements, targets

are reviewed and revalidated at least every

five years. Reckitt will complete this

revalidation exercise in 2026 to ensure that

our targets remain ambitious and aligned with

the latest climate science. These science-

based targets form part of our Sustainability

Ambitions, which are embedded within our

growth strategy and support both resilience

and long-term opportunities for our

operations and brands.

(a) Climate-related risks and opportunities

across time horizons

We assess climate-related risks and

opportunities over three time horizons:

• short term (up to three years): Aligned with

our Group risk assessment;

• medium term (three to five years):

Consistent with our strategic planning

cycle; and

• long term (10+ years): Reflecting the useful

life of brand intangible assets and informed

by our work with Risilience.

Short to medium term

Our analysis over the past three years

indicates that transition risks, particularly

policy and consumer sentiment, pose the

greatest potential impact in the short to

medium term. Key drivers include:

• consumer sentiment shifts toward low-

impact products;

• carbon pricing and regulatory changes,

most pronounced under a 1.5°C scenario;

and

• energy and commodity cost increases

across our value chain.

While these risks could be significant under

rapid transition pathways, a more likely phased

policy approach combined with our mitigation

actions, such as emissions reduction across

supply networks and innovation in sustainable

products, means these risks are not currently

material for Reckitt.

Physical risks, including extreme weather

events, are increasing in frequency and

severity but represent a smaller proportion of

total earnings value at risk compared to

transition risks in this timeframe.

Long term

Over the longer term, we anticipate greater

exposure to physical risks, including:

• increased frequency and severity of

extreme weather events;

Climate-Related Financial Disclosures continued

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200

Strategic report Governance Financial statements Other information

• water stress and higher ambient

temperatures impacting global sites and

supply networks; and

• regional climate shifts reducing raw material

availability and altering sourcing locations

and product viability in impacted regions.

Whilst the aggregate impact of modelled

physical risks is currently not material, these

risks will continue to be monitored and

mitigated as much as possible to build

resilience to a changing outlook.

iii. Climate-related modelled risks and

potential financial impacts

The table summarises the potential earnings

value at risk associated with our modelled

risks over the short to medium term (up to

five years) and a qualitative assessment of

how these risks could evolve over the longer

term (10 to 20 years). Our potential earnings

value at risk estimations represent gross risk

for the Group as a whole. Materiality is

assessed using the same thresholds as our

Financial Statements.

We have modelled the impact of the

following risks:

• consumer sentiment (e.g. reusable

packaging, alternative proteins);

• investor sentiment and discount rate

changes;

• carbon price variability;

• technology-driven asset impairment;

• litigation and reputational exposure;

• facility disruption from extreme weather;

• raw material supply volatility; and

• market disruption from regional climate

shocks.

Individually, the modelled impacts of these risks are not considered material to our Business under the five scenarios assessed. The aggregate

potential impact of these risks materialising under a Current Policy (3°C) or Paris Ambition (1.5°C) pathway is summarised below. The risk values

presented reflect the gross exposure to the Group and assume that none of the mitigating actions outlined later have been implemented.

Pathway

Unmitigated

potential annual

impact over 5 years 5–10-year modelled scenario impacts andassumptions (to 2030)

10–20-year modelled scenario impacts and

assumptions (to2040 – 2050)

3°C

Current

Policy

Not material Consumer sentiment change

• Traditional shopping preferences persist, with only limited growth in sustainable options. As a result, demand for

conventional products declines only marginally

3°C

Current

Policy

Not material Other modelled physical and transition risks

• Carbon pricing: Carbon prices remain around $13/tCO₂e through 2050, with inconsistent global implementation.

Current sector coverage under existing policies remains static and does not expand

• Policy and corporate inaction: Limited action by governments and corporates accelerates climate change, driving

increased public and consumer activism as a mechanism for corporate accountability

• Climate-related litigation: Exposure to litigation varies based on historical emissions responsibility and the

strength of current commitments to address future emissions

• Supply chain disruptions: Local distribution from warehouses to points of sale is disrupted, and consumer

demand fluctuates due to climate-related weather events

• Extreme weather events: Increased severity and frequency of hazards such as heatwaves, freezes, droughts,

flooding and windstorms

• Raw material volatility: Production of raw materials fluctuates due to climate variability and long-term climate change

1.5°C

Paris

Ambition

Not material Consumer sentiment change

• Consumers increasingly switch from non-sustainable products to more

sustainable options. Low-carbon alternative products progressively increase

market share, supported by policy frameworks including carbon labelling

Demand for sustainable products

andservices becomes mainstream,

reshaping markets globally. Consumer

behaviours must undergo significant

transformation to align with ambitious

emissions reduction targets

1.5°C

Paris

Ambition

Not material Other modelled physical and transition risks

• Carbon pricing: Carbon prices rise sharply to $244/tCO₂e within the next

five years, driven by radical government action to reduce emissions through

carbon pricing mechanisms

• Asset impairment: Assets closely tied to fossil fuel use become impaired in

direct proportion to the pace of fossil fuel phase-out

• Public sentiment and decarbonisation: Strong and persistent public

support for climate action ensures decarbonisation pathways are achieved

or exceeded without significant disruption to economic activity

• Sector resilience: The consumer staples sector experiences relatively low

exposure to capital flight during the economic transition

• Supply chain disruptions: Local distribution from warehouses to points of

sale is disrupted, and consumer demand fluctuates due to climate-related

weather events

• Raw material volatility: Production of raw materials varies as a result of

climate variability

Governments take bold measures to

curb emissions, leveraging aggressive

carbon pricing strategies. Carbon

prices surge dramatically, driving rapid

and widespread adoption across

developed economies

Climate-Related Financial Disclosures continued

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Climate-Related Financial Disclosures continued

(b) Impact on business, strategy and

financial planning

Our climate scenario analysis supports

financial and operational planning. We focus

activity through routine business and financial

planning within our brands and supply chain, in

annual and three-year cycles, in order to

manage risks and deliver against our

Sustainability Ambitions.

We assume that all aspects of our value chain

will be susceptible to climate-related transition

and physical risks to varying degrees.

The rate of global decarbonisation and the

implementation of associated policy

frameworks are critical determinants of the

magnitude of climate-related impacts on

Reckitt. The 1.5°C pathway assumes a fast

adoption of sustainable alternatives and a

significant reduction in consumer demand for

less sustainable and more carbon intensive

products, whereas the 3°C pathway assumes

a limited reduction in current demand.

There is potential for Reckitt brands to be

variably exposed to demand loss, depending

on the environmental impact of the product

(including raw material composition,

manufacturing and consumer use). While we

continue to see increased consumer interest in

more sustainable products, there remains a

‘say-do’ gap for the vast majority, with

consumers remaining focused primarily on

value and efficacy. This exposure therefore has

negligible current impact. Nonetheless, our

sustainable product innovation programme

continues to inform our product development

pipeline and supports our ambition for 50% of

net revenue from more sustainable products

by 2030. This programme also supports activity

to reduce product carbon footprints and is

linked to management reward incentives (see

Directors’ Remuneration Report on page 103).

We are actively working to reduce our GHG

emissions in line with our 2030 reduction

targets for Scopes 1, 2 and 3 and our

commitment to achieve net zero by 2040.

OurClimate Transition Plan identifies and

prioritises decarbonisation opportunities

inour operations, products and value chain.

Thecomplexity of our global value chain

requires multiple interventions with our

suppliers and customers.

During 2025, we increased the breadth and

depth of data-driven analysis across our

supply chain to better identify and mitigate

emissions intensive activities. Specifically, we

are focusing on several initiatives to reduce

e in materials by:

• targeting suppliers to use renewable

energy in their operations;

• using less of certain ingredients while

maintaining the efficacy of products;

• using alternative ingredients with a lower

e footprint. Such substitution may take

longer if different ingredients require

qualification, particularly in regulated

products;

• reducing the water in our products by

developing concentrates which reduces the

transport footprint and packaging use; and

• using recycled materials – our targeted switch

to 25% post-consumer recycled (PCR)

packaging and using less virgin plastic will

deliver CO

e savings that we will model

across the value chain. This activity

contributes to reducing our exposure to

increases in carbon pricing and other

transition related risks.

We have assumed that together with shifts in

consumer behaviour and general market pricing

we are able to mitigate the risks identified

above. Our mitigation activities and the

opportunities we have identified encompass:

1. Our operations

We are optimising our processes to reduce

carbon emissions by increasing support for

renewable electricity and low-carbon energy

sources. For Scopes 1 and 2, we have achieved

progressive improvements in carbon reduction.

In the near term, our focus includes switching

from gas for low-to-mid-thermal energy

needs, alongside continued sourcing of

renewable electricity. Capital allocation for

carbon-related environmental improvements

is embedded in current planning, with

progress reviewed monthly.

We actively assess potential asset damage

and the frequency of extreme weather or

other climate-related events, including

associated remediation costs, through our risk

management and business continuity

programmes. These assessments are

integrated into our financial planning and

insurance strategies. Site location planning

and building design incorporate

considerations for temperature, adverse

weather and water stress risks.

To mitigate water stress, we implement water

efficiency measures and catchment area

management, aiming for all sites in water-

stressed regions to achieve water-positive

status by 2030. Further details on our broader

environmental targets and performance can

be found on pages 42–45.

2. Product innovation

We use a range of tools to assess climate-

related factors across the product lifecycle,

from material sourcing to consumer use, as

part of our innovation process. Our

Sustainable Innovation Calculator informs new

and existing product development, which

helps us design for lower carbon and water

footprints in use, mitigates physical risks in the

marketplace and helps us to meet emerging

consumer preferences. The calculator

considers the product carbon and water

footprint, plastics and packaging, and

ingredients metrics. Product innovation

provides opportunity for growth, by meeting

emerging consumer demands and

expectations and developing products that

are well placed for emerging fiscal policy and

physical environments.

3. Supply chain resilience

We continue to strengthen the resilience of our

supply chains at both site level and for key natural

raw materials. For example, within our latex

supply chain, we work closely with suppliers and

farm-level stakeholders to implement initiatives

to secure a sustainable supply of natural latex for

the long term, supporting the continued success

of our Durex brand. Our approach focuses on

identifying and addressing environmental and

social risks to supply through partnerships

withNature-based Insights, Earthworm and

FairRubber Association. Palm oil is another

priority raw material for Reckitt. Alongside our

commitment to Roundtable for Sustainable

PalmOil (RSPO) certification, we collaborate

withNGOs, including Earthworm and WWF,

todeliver landscape-level programmes in

Indonesia and Malaysia that take a holistic

approach, bringing together smallholder farmers,

companies, communities and local authorities to

find collective solutions to the root causes of

deforestation. Our partnership with WWF also

supports water stewardship projects across

several of our manufacturing sites and

sourcinglandscapes.

Reckitt also engages suppliers to measure,

track and reduce supplier-related carbon

emissions. Our Procurement teams continually

build visibility and understanding of carbon

emissions across our value chain. We work

directly with key suppliers and third-party

manufacturers to help them measure and

progressively reduce emissions, building

resilience to both physical and transition risks

from climate change within our supply chain

and for our suppliers.

Our Scope 3 emissions have reduced

year-on-year. Our principle remains to abate

first and offset last, prioritising reductions in

our direct footprint. However, we are

considering appropriate carbon market

management approaches for the longer term.

We also address deforestation risks across our

wider supply chain, working with suppliers of

materials such as palm oil.

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climate scenarios (including 2°C or lower)

Collective climate change impacts may pose

risks to Reckitt’s operations. However, our

strategy, targets, actions and progress help

mitigate these risks, build resilience and

unlock future opportunities. Our 2030 targets

of: 50% of net revenue from more sustainable

products; 50% reduction in selected Scope 3

category emissions vs 2015; and 65%

reduction in operational carbon emissions vs

2015, collectively strengthen the resilience of

Reckitt’s brand portfolio and supply chain.

Based on our analysis, the modelled scenarios

and associated climate-related risks outlined

above are not considered material to ongoing

business operations. We have assessed that

our Business demonstrates increasing

resilience across a range of scenarios,

including one where global warming is limited

to 1.5°C.

This assessment is supported by several

factors:

• a strong, market-leading portfolio of health

and hygiene brands, combined with core

capabilities in adapting and innovating

existing ranges while launching new

products to meet evolving consumer

needs;

• an active programme to improve the

carbon, water, plastic, chemical and

packaging footprint of our products; and

• an extensive, globally diverse sourcing base

supported by strong, longstanding strategic

supplier relationships, providing a natural

hedge against weather-related disruptions.

Metrics and targets

Reckitt has established clear sustainability

metrics and targets to drive performance on

climate change and related environmental

matters, both within our direct operations and

across our value chain (see dashboard on

page 42). We have considered all cross-

industry climate-related metrics set out in the

TCFD All Sector guidance and report those

considered material to our Business.

Greenhouse gas (GHG) emissions

Our ambition is to achieve net zero across our

value chain (excluding indirect consumer use

emissions) by 2040. Our near-term GHG

reduction targets are validated by SBTi every

five years. Reckitt is due to submit updated

targets for validation in 2026. Reckitt’s current

near-term GHG reduction targets validated by

the SBTi:

Our operations (Scope 1 and 2)

• Reduce absolute Scope 1 and 2 GHG

emissions by 65% by 2030, from a 2015 base

year (aligned to a 1.5°C pathway)

• Achieve 100% renewable electricity

sourcing by 2030

We have surpassed our Scope 1 and 2

reduction target, achieving 73% reduction vs

2015 and will review future targets as part of

the upcoming SBTi review in 2026.

Our value chain (Scope 3)

Reduce absolute Scope 3 GHG emissions from

purchased goods and services (ingredients

and packaging), direct emissions from use of

sold products and end of life treatment by

50% by 2030, from a 2015 base year.

See pages 42–45 for more detail on our net zero

roadmap, water and packaging targets, and GHG

emissions data, including Scopes 1, 2, and

selected Scope 3 disclosures.

Climate-related physical and transition

risks

Refer to pages 199-201 for details on our

assessment of physical and transition risks and

opportunities.

Capital deployment and internal carbon

pricing

Work progresses on setting an internal carbon

price to strengthen climate impact

considerations in future investment decisions;

however, it has not been established yet.

Remuneration

Our Long-Term Incentive Plan (LTIP) includes

ESG metrics. Senior management incentive

opportunities are tied to the delivery of

Reckitt’s strategy, including progress against

our 2030 Sustainability Ambitions. See page

103 for further details.

Other metrics

• Stakeholder sentiment: We track

engagement with investors, customers and

NGOs through routine dialogue and monitor

performance in external benchmarks such

as MSCI, Sustainalytics and CDP.

• Consumer insights: We monitor consumer

spending patterns and preferences through

sales data and research, informing product

innovation and R&D pipeline.

We use the Transition Plan Taskforce

framework, SBTi and Forest, Land and

Agriculture (FLAG) guidance to guide our

actions.

Climate-Related Financial Disclosures continued

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Alternative Performance Measures

The Annual Report and Accounts include financial information prepared in accordance with

International Financial Reporting Standards (IFRS Accounting Standards) as well as information

presented on an adjusted (non-IFRS) basis.

Financial information presented on an adjusted basis excludes certain cash and non-cash items.

These items have a pattern of recognition that is largely uncorrelated with the trading

performance of the Business. Management reviews the Business on this basis for the purpose of

making operating decisions and showing these adjusted measures in addition to the IFRS

measures provides useful additional information on trading performance to the users of the

Financial Statements. These adjusted measures should not be considered in isolation from, as

substitutes for, or superior to the financial measures prepared in accordance with IFRS.

The following items (adjusting items) are excluded from IFRS earnings in calculating adjusted earnings.

• Impact of business combinations, acquired brands and similar purchases of equity, where

IFRS accounting results in the recognition of certain costs that are not comparable with those

for internally generated assets, (although the net revenues and other costs of these business

combinations are not adjusted for):

– amortisation and impairment of: (a) acquired brands, trademarks and similar assets; and

(b)certain other intangible assets recorded as a result of a business combination;

– inventory fair value adjustments;

– professional and advisor costs recorded as the result of a business combination;

– changes in the amount of consideration paid or expected to be paid (including changes

infair value) and associated tax impacts; and

– changes to deferred tax liabilities relating to: (a) acquired brands, trademarks and similar assets;

and (b) certain other intangible assets recorded as the result of a business combination as the

amortisation or profit on disposal of these brands would be treated asan adjusting item.

• Profits or losses relating to the sale of brands and related intangible assets as the

continued active management of our portfolio results in the recognition of profits or losses

relating to disposals of brands and related intangible assets which are largely uncorrelated

with the trading performance of the Business

• Recycled foreign exchange translation reserves upon the sale, liquidation, repayment of

share capital or abandonment of a subsidiary previously controlled by the Group, as the gain or

loss relates to mainly exchange movements in previous periods rather than the current period

• The reclassification of finance income/(expenses) on tax balances into income tax

expense, to align with the Group’s tax guidance. As a result, the income/(expenses) are

presented as part of income tax expense on an adjusted basis

• Other individually material items of expense or income. Some of these items are resolved

over a period of time such that the impact may affect more than one reporting period

Adjusted measures

• Adjusted operating profit and adjusted operating profit margin: Adjusted operating profit

reflects the IFRS operating profit excluding items in line with the Group’s adjusted items

policy. See page 208 for details on the adjusting items and a reconciliation between IFRS

operating profit and adjusted operating profit. The adjusted operating profit margin is the

adjusted operating profit expressed as a percentage of net revenue

• Adjusted tax rate: The adjusted tax rate is defined as the adjusted continuing income tax

expense as a percentage of adjusted profit before tax. This also includes interest on tax.

• Adjusted diluted EPS: Adjusted diluted EPS is the IFRS diluted EPS excluding items in line

withthe Group’s adjusted items policy. See page 208 for details on the adjusting items and

areconciliation between IFRS net income and adjusted net income. The weighted average

number of shares for the period is the same for both IFRS diluted EPS and adjusted diluted EPS

• Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation): Adjusted

operating profit less depreciation and amortisation (excluding adjusting items)

Other non-GAAP measures

• Like-for-like (LFL): Net revenue growth or decline at constant exchange rates (see below)

excluding the impact of acquisitions, disposals and discontinued operations. Completed

disposals are excluded from LFL revenue growth for the entirety of the current and prior

years. Acquisitions are included in LFL revenue growth 12 months after the completion of the

relevant acquisition. LFL growth also excludes countries with annual inflation greater than

100% (Venezuela). Argentina was excluded in 2024 and was disposed in full in 2025

• Constant exchange rate (CER): Net revenue and profit growth or decline adjusting the actual

consolidated results such that the foreign currency conversion uses the same exchange rates

as were applied in the prior period and excludes the effect of applying hyperinflation

accounting in the relevant subsidiaries

• Net working capital (NWC): NWC is the total of inventory, trade and other receivables and

trade and other payables less interest accrued on tax balances, indemnity provisions for

disposed businesses and forward purchase liabilities. NWC is calculated as a % of the last 12

months net revenue to compare changes in NWC to the growth of the Business

• Net debt: The Group’s principal measure of net borrowings being the total of cash and cash

equivalents, short-term and long-term borrowings, lease liabilities and derivative financial

instruments on debt

• Free cash flow and free cash flow conversion: The Group’s principal measure of cash flow

defined as net cash generated from continuing operating activities less net capital

expenditure on property, plant and equipment and intangible software assets less interest

and tax paid. A reconciliation of cash generated from operations to free cash flow is shown on

page 206. The Group tracks free cash flow as a % of adjusted net income to understand the

conversion of adjusted profit into cash

• Category Market Unit (CMU): Reckitt analyses its market share by CMUs, which represent

country and either brand or category. This allows us to analyse the components of market

share growth taking into account both geography and brand/category. Management has

identified those CMUs that are the most strategically important (top CMUs). The list of CMUs

iskept under continual review and will change over time based on strategic decisions

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Other definitions and terms

• Fixed costs: Fixed costs are defined as net operating expenses less marketing expenses and

adjusting items. They are typically expressed as a % of Net Revenue. In July 2024, the Group

set a target to exit 2027 with a fixed costs base of 19% of Net Revenue

• Discontinued operations: Includes credits or charges related to the previously demerged

RBPharmaceuticals business that became Indivior plc. Net profit/(loss) from discontinued

operations is presented as a single line item in the Group Income Statement

• Return on capital employed (ROCE): Defined as adjusted operating profit after tax divided

by monthly average capital employed. Capital employed comprises total assets less current

liabilities other than borrowings-related liabilities. Total assets exclude cash, retirement benefit

surplus, current tax and a technical gross-up to goodwill that arises because of deferred tax

liabilities recorded against identified assets acquired in business combinations. Total assets

have been adjusted to add back impairments of goodwill except where the impaired asset

has been disposed or partially disposed. Current liabilities exclude the share repurchase

liability, legal provisions recorded as a result of adjusting items and current tax

• Cash returned to shareholders: Cash returned to shareholders is the total of dividends paid

to owners of the parent company and repurchase of ordinary shares

• Net revenue attributable to ‘more sustainable’ products:

A product is defined as ‘more sustainable’ when it scores a total of 10 or more points

acrossfive parameters (Carbon, Water, Plastics, Packaging and Ingredients) versus the

benchmark Reckitt product at the time of launch using our Sustainable Innovation Calculator

(astreamlined Life Cycle Assessment tool that models the environmental impact of products).

The net revenue from ‘more sustainable products’ is expressed as a percentage of total net

revenue. The calculation is done on the basis of 12-month period 1 October 2024 –

30September 2025

• People positively impacted by social impact programmes:

The number of people who experience a material positive impact on their health and/or

quality of life as a result of Reckitt’s social investment. Impact on health is defined as: The

number of people that experience material positive benefits to their physical or mental health

as a result of the programme e.g. reduction in illnesses and disease, improved access to basic

essential services like water, sanitation, or health services. Impact on livelihoods is defined as:

The number of people that experience material positive benefits to their socio economic

conditions or educational opportunities as a result of the programme e.g. improved

employment opportunities, increased income, reduction in school absenteeism. The metric

covers the reporting period 1 January – 31 December, cumulative since 2020

• Reconciliation of IFRS like-for-like net revenue excluding seasonal OTC brands: LFL is

shown excluding net revenue from seasonal OTC products that are affected by the Cold and

Flu season. As this season can vary both in intensity and timing in the year, presenting net

revenue growth excluding this can provide a view of growth excluding this factor

Reconciliation of IFRS to Like-for-Like Net Revenue (by operating segment)

For the year ended 31 December

Net revenue

Emerging

Markets

£m

Europe

£m

North

America

£m

Core

Reckitt

£m

Essential

Home

£m

MJN

£m

Group

£m

2024 IFRS

(Restated)

3,884 3,487 2,641 10,012 2,046 2,111 14,169

M&A and

divestment (12) (9) – (21) (2,039) (16) (2,076)

Exchange and

hyperinflation – (17) – (17) (7) – (24)

2024 like-for-

3,872 3,461 2,641 9,974 – 2,095 12,069

2025 IFRS 4,291 3,384 2,559 10,234 1,852 2,119 14,205

M&A and

divestment – – – – (1,911) (18) (1,929)

Exchange and

hyperinflation 147 29 86 262 59 73 394

2025 like-for-

like 4,438 3,413 2,645 10,496 – 2,174 12,670

Like-for-like

growth 14.6% –1.4% 0.2% 5.2% N/A 3.8% 5.0%

1 In 2025, Reckitt has transferred some globally managed export businesses previously reported within Reckitt Core Europe

to be locally managed (within Reckitt Core and Essential Home). 2024 comparatives have been restated accordingly

2 Essential Home was consolidated within IFRS results until its disposal on 31 December 2025. Essential Home is excluded from

LFL net revenue growth, as disposal completed before the end of the year

Reconciliation of IFRS to Like-for-Like Net Revenue Excluding Seasonal OTC brands

For the year ended 31 December

Net revenue

Self Care

£m

Core Reckitt

£m

2024 Like-for-like 3,277 9,974

2024 seasonal OTC 1,318 1,318

2024 LFL ex. seasonal OTC 1,959 8,656

2025 Like-for-like 3,375 10,496

2025 seasonal OTC 1,234 1,234

2025 LFL ex. seasonal OTC 2,141 9,262

2025 Like-for-like growth 3.0% 5.2%

2025 LFL growth ex seasonal OTC 9.3% 7.0%

Alternative Performance Measures continued

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Alternative Performance Measures continued

Reconciliation of IFRS to Like-for-Like Net Revenue (by category)

For the year ended 31 December

Net revenue

Self Care

£m

Germ

Protection

£m

Household

Care

£m

Intimate

Wellness

£m

Core

Reckitt

£m

2024 IFRS 3,290 3,086 2,254 1,382 10,012

M&A (12) – – (9) (21)

Exchange and hyperinflation (1) – (16) – (17)

2024 like-for-like 3,277 3,086 2,238 1,373 9,974

2025 IFRS 3,306 3,224 2,189 1,515 10,234

M&A – – – – –

Exchange and hyperinflation 69 122 41 30 262

2025 like-for-like 3,375 3,346 2,230 1,545 10,496

Like-for-like growth 3.0% 8.4% -0.4% 12.5% 5.2%

Like-for-Like Adjusted Operating Profit (Group)

31 Dec 2025

£m

31 Dec 2024

£m

Net Revenue 14,205 14,169

Adjusted operating profit 3,543 3,475

Adjusted operating margin 24.9% 24.5%

Adjusted operating margin versus prior year 40 bps 140 bps

Reconciliation of Group Gross Profit to Reckitt Core Gross Profit

31 December 2025 31 December 2024

12 months ended

Net

revenue

£m

Gross

margin

£m

Gross

margin

Net

revenue

£m

Gross

margin

£m

Gross

margin

Total Group 14,205 8,634 60.8% 14,169 8,595 60.7%

Less: non-core

EssentialHome 1,852 978 52.8% 2,046 1,109 54.2%

MJN 2,119 1,295 61.1% 2,111 1,256 59.5%

Total non-core 3,971 2,273 57.2% 4,157 2,365 56.9%

Core Reckitt 10,234 6,361 62.2% 10,012 6,230 62.2%

1 In 2025, Reckitt has transferred some globally managed export businesses previously reported within Reckitt Core Europe

to be locally managed (within Reckitt Core and Essential Home). 2024 comparatives have been restated accordingly

Reconciliation of Adjusted Operating Profit and Net Income before income tax

atActual Exchange Rate to Constant Exchange Rate

31 December 2025 31 December 2024

Actual FX

£m

CER

£m

Actual FX

£m

CER

£m

Emerging Markets 896 39 935 731 – 731

Europe 1,064 10 1,074 1,049 – 1,049

North America 771 33 804 804 – 804

Reckitt Core

2,731 82 2,813 2,584 – 2,584

Essential Home

379 13 392 492 – 492

MJN 433 22 455 399 – 399

Adjusted operating profit 3,543 117 3,660 3,475 – 3,475

Adjusted profit before

income tax 3,197 118 3,315 3,152 – 3,152

2 In 2025, Reckitt has transferred some globally managed export businesses previously reported within Reckitt Core Europe

to be locally managed (within Reckitt Core and Essential Home). 2024 comparatives have been restated accordingly

Reconciliation of Operating Cash Flow to Free Cash Flow

31 Dec 2025

£m

31 Dec 2024

£m

Cash generated from continuing operations 3,501 3,675

Less: net interest paid (303) (292)

Less: tax paid (897) (700)

Less: purchase of property, plant and equipment (536) (370)

Less: purchase of intangible assets (79) (95)

Plus: proceeds from the sale of property, plant and equipment 23 14

Free cash flow 1,709 2,232

Free cash flow conversion 71% 91%

Reckitt Annual Report and Accounts 2025

206

Strategic report Governance Financial statements Other information

Alternative Performance Measures continued

Free Cash Flow Conversion

31 Dec 2025

£m

31 Dec 2024

£m

Adjusted operating profit 3,543 3,475

Depreciation, share-based payments and gain on disposal of fixed

assets (net of proceeds) 545 546

Capital expenditure (592) (465)

Movement in working capital and provisions (388) (271)

Exceptional cash flow (199) (61)

Interest paid (303) (292)

Tax paid (897) (700)

Free cash flow 1,709 2,232

Free cash flow conversion 71% 91%

12 month’s Adjusted EBITDA to Net Debt

Adjusted EBITDA

31 Dec 2025

£m

31 Dec 2024

£m

Operating profit 4,217 2,425

Excluding adjusting items (674) 1,050

Adjusted operating profit 3,543 3,475

Excluding: adjusted depreciation and amortisation 436 436

Adjusted EBITDA 3,979 3,911

Net debt

31 Dec 2025

£m

31 Dec 2024

£m

Cash and cash equivalents (inc. overdrafts) 1,952 879

Financing liabilities (8,510) (8,793)

Net debt (6,558) (7,914)

Net debt/adjusted EBITDA (times) 1.6 2.0

Reconciliation of Brand Equity Investment (BEI) to Marketing Expenses

31 Dec 2025

£m

31 Dec 2024

£m

Brand equity investment 2,075 1,893

Non-BEI marketing 262 269

Total marketing costs 2,337 2,162

Net Debt Bridge

31 Dec 2025

£m

31 Dec 2024

£m

Opening net debt (7,914) (7,290)

Free cash flow 1,709 2,232

Share buyback (879) (1,328)

Share issues 40 –

Acquisitions/disposals of subsidiaries and NCI (net of cash)

1,794 –

Disposal of investments 1 17

Non-cash contribution by NCI 17 –

New lease liabilities (71) (70)

Discontinued cash flow (4) (1)

Dividends (including to NCI) (1,409) (1,383)

Foreign exchange and other movements 158 (91)

Closing net debt (6,558) (7,914)

Dividend Cover

31 Dec 2025

£m

31 Dec 2024

£m

Interim dividend paid in year 573 561

Final dividend proposed 825 830

Total dividends 1,398 1,391

Adjusted net income 2,403 2,449

Dividend cover (times) 1.7 1.8

1 Includes £8m of lease liabilities disposed with Essential Home

Reckitt Annual Report and Accounts 2025

207

Strategic report Governance Financial statements Other information

Net Working Capital

31 Dec 2025

£m

31 Dec 2024

£m

Inventories 1,473 1,517

Trade and other receivables 2,124 2,091

Trade and other payables (5,072) (5,291)

Less: forward purchase liability 191 133

Less: interest accrued on tax balances 115 101

Less: indemnity provisions for disposed businesses 6 47

Net working capital (1,163) (1,402)

Net working capital as percentage of 12-month net revenue (8%) (10%)

Reconciliation of Net Operating Expenses to Fixed Costs

31 December 2025 31 December 2024

12 months ended

Actual FX

£m

CER

£m

Actual FX

£m

CER

£m

Net Operating

Expenses 4,417 146 4,563 6,170 – 6,170

Less Marketing (2,337) (63) (2,400) (2,162) – (2,162)

Less Adjusting

Items 674 (34) 640 (1,050) – (1,050)

Fixed Costs 2,754 49 2,803 2,958 – 2,958

ROCE Calculation

31 Dec 2025

£m

31 Dec 2024

£m

Adjusted operating profit 3,543 3,475

Less: taxation on adjusted operating profit (875) (771)

Adjusted net operating profit after tax 2,668 2,704

IFRS total assets 25,068 25,298

IFRS total current liabilities (6,650) (7,943)

IFRS total assets less current liabilities 18,418 17,355

Excluding IFRS items not included in capital employed:

Short-term borrowings 810 1,423

Current tax liabilities 526 602

Legal provisions 33 30

Interest accrued on tax balances 115 101

Share repurchase liability 101 477

Cash and cash equivalents (1,952) (880)

Current tax recoverable (58) (45)

Retirement benefit surplus (284) (269)

IFRS balances included in capital employed 17,709 18,794

Add back: impairments included within IFRS balances 4,843 4,921

Less: goodwill due to deferred tax on intangibles (4,142) (4,303)

Impact of average in year vs closing balance 560 687

Average capital employed 18,970 20,099

Return on capital employed 14.1% 13.5%

Alternative Performance Measures continued

Reckitt Annual Report and Accounts 2025

208

Strategic report Governance Financial statements Other information

Alternative Performance Measures continued

The table below reconciles the Group’s IFRS measures to its adjusted measures for the year ended 31 December 2025.

Adjusting items

IFRS

£m

Impact of

business

combinations

£m

Reclassified

foreign

exchange

translation on

liquidation of

subsidiaries

£m

Finance

income

reclass

£m

Other

individually

material items

of income and

expense

£m

Adjusted

£m

Net revenue 14,205 – – – – 14,205

Cost of sales (5,571) – – – – (5,571)

Gross profit 8,634 – – – – 8,634

Net operating expenses (4,417) 359 – – (1,033) (5,091)

Operating profit 4,217 359 – – (1,033) 3,543

Net finance expense (379) 35 – (2) – (346)

Profit before income tax 3,838 394 – (2) (1,033) 3,197

Income tax charge (635) (73) – 2 (83) (789)

Net income from continuing operations 3,203 321 – – (1,116) 2,408

Less: attributable to non-controlling interests (5) – – – – (5)

Net income from continuing operations attributable to

owners of the Parent Company 3,198 321 – – (1,116) 2,403

Net loss from discontinued operations (16) – – – 16 –

Total net income attributable to owners of the Parent

Company 3,182 321 – – (1,100) 2,403

Earnings per share (EPS)

Continuing operations

Basic 470.7 47.3 – – (164.3) 353.7

Diluted 469.5 47.1 – – (163.8) 352.8

Discontinued operations

Basic (2.4) – – – 2.4 –

Diluted (2.3) – – – 2.3 –

Total operations

Basic 468.3 47.3 – – (161.9) 353.7

Diluted 467.2 47.1 – – (161.5) 352.8

1 EPS is calculated using 679.4 million shares (basic) and 681.1 million shares (diluted)

Impact of business combinations comprise:

• £250 million of impairment and £62 million

amortisation of certain intangible assets

recognised as a result of historical business

combinations, and a related £73 million tax

credit;

• £35 million relating to remeasurement of

payments as part of an agreement to

acquire remaining interests from minority

shareholders; and

• £47 million related transitional service

charge associated with the acquisition of

the minority interest.

Reclassification of finance income of

£2million relates to the reclassification

ofinterest income on income tax balances

from net finance income to income tax.

Other individually material items of income

and expense comprise:

• Restructuring and other project costs of

£195 million linked to the Group strategic

announcements in 2024 of which

£179million relates to the Fuel for Growth

programme. This principally includes

professional advisor fees and severance

costs relating to business transformation

and portfolio changes;

• £14 million expense relating to costs

incurred in relation to the Korean

HumidifierSanitiser issue;

• £1,245 million profit on sale of Essential

Home completed in 2025 and a related

£40million tax credit;

• £43 million tax credit on restructuring

andother project costs; and

• £16 million from discontinued operations

mainly relating to interest accruing on

anuncertain tax position relating to the

former RB Pharmaceuticals business

(nowIndivior plc).

Reckitt Annual Report and Accounts 2025

209

Strategic report Governance Financial statements Other information

The table below reconciles the Group’s IFRS measures to its adjusted measures for the year ended 31 December 2024.

Adjusting items

IFRS

£m

Impact of

business

combinations

£m

Net gain on

disposal

of brands

£m

Finance

expense

reclass

£m

Other

individually

material items

of income

and expense

£m

Adjusted

£m

Net revenue 14,169 – – – – 14,169

Cost of sales (5,574) – – – – (5,574)

Gross profit 8,595 – – – – 8,595

Net operating expenses (6,170) 40 (9) – 1,019 (5,120)

Operating profit 2,425 40 (9) – 1,019 3,475

Net finance expense (321) 17 – (15) (4) (323)

Profit before income tax 2,104 57 (9) (15) 1,015 3,152

Income tax charge (672) (6) – 15 (38) (701)

Net income from continuing operations 1,432 51 (9) – 977 2,451

Less: Attributable to non-controlling interests (2) – – – – (2)

Net income from continuing operations attributable to

owners of the Parent Company 1,430 51 (9) – 977 2,449

Net loss from discontinued operations (4) – – – 4 –

Total net income attributable to owners of the Parent

Company 1,426 51 (9) – 981 2,449

Earnings per share (EPS)

Continuing operations

Basic 204.2 7.3 (1.3) – 139.5 349.7

Diluted 203.8 7.3 (1.3) – 139.2 349.0

Discontinued operations

Basic (0.6) – – – 0.6 –

Diluted (0.6) – – – 0.6 –

Total operations

Basic 203.6 7.3 (1.3) – 140.1 349.7

Diluted 203.2 7.3 (1.3) – 139.8 349.0

1 EPS is calculated using 700.4 million shares (basic) and 701.7 million shares (diluted)

Impact of business combinations comprise:

• £25 million of amortisation of certain

intangible assets recognised as a result of

historical business combinations and a

related £6 million tax credit;

• £15 million related to the transitional service

charge associated with the acquisition of

the minority interest; and

• £17 million relating to the remeasurement of

payments as part of an agreement to

acquire remaining interests from minority

shareholders.

Net gain on disposal of brands comprises

£9million profit on sale of certain small

developing market brands completed in 2024.

Reclassification of finance expense of

£15million relates to the reclassification of

interest expense on income tax balances

fromnet finance expense to income tax.

Other individually material items of income

and expense comprise:

• Restructuring, and other project costs of

£167 million linked to the Group strategic

announcements in 2024.This principally

includes professional advisor fees and

severance costs relating to business

transformation and portfolio changes;

• £13 million expense relating to costs

incurred in relation to the Korean

HumidifierSanitiser issue;

• £838 million expense relating to the

impairment of IFCN and Biofreeze

intangibleassets (Note 9);

• £38 million tax credit on the intangible

asset impairment, restructuring and other

project costs; and

• £4 million from discontinued operations

relating to interest accruing on an uncertain

tax position relating to the former RB

Pharmaceuticals business (now Indivior plc).

Alternative Performance Measures continued

Reckitt Annual Report and Accounts 2025

210

Strategic report Governance Financial statements Other information

Annual General Meeting

Our Annual General Meeting (AGM) will be held on Thursday 21 May 2026 at 14:00 at the London

Heathrow Marriott Hotel, Bath Road, Hayes, Middlesex UB3 5AN.

The Notice convening the AGM meeting, together with the business to be considered at the

meeting, is contained in a separate document for shareholders and is available on our website at

reckitt.com/investors/annual-general-meetings.

2026 financial calendar and key dates

Record date for 2025 final dividend 10 April 2026

Announcement of Quarter 1 trading statement 22 April 2026

Annual General Meeting 21 May 2026

Payment of 2025 final ordinary dividend 12 June 2026

Announcement of 2026 interim results 29 July 2026

Record date for 2026 interim dividend 7 August 2026

Payment of 2026 interim ordinary dividend 18 September 2026

Announcement of Quarter 3 trading statement 21 October 2026

Dividend

The Directors recommend a final dividend of 127.8 pence per share for the year ended

31December 2025. Subject to shareholder approval at the 2026 AGM, payment of the final

dividend will be made on 12 June 2026 to all shareholders on the register as at 10 April 2026. The

latest date for receipt of new applications to participate in the Dividend Reinvestment Plan

(DRIP) in respect of the 2025 final dividend is 21 May 2026. Details on how to join the DRIP can be

found below.

Dividend Reinvestment Plan (DRIP)

Shareholders participating in the DRIP receive additional shares purchased in the market instead

of receiving a cash dividend. You can elect to join the DRIP by registering on the Computershare

Investor Centre at investorcentre.co.uk. Alternatively, you can request a DRIP mandate form and

terms and conditions by contacting Computershare on +44 370 703 0118.

Mandatory direct credit

We no longer pay dividends by cheque. Instead, cash dividends are now paid directly to

shareholders’ bank accounts. This is known as ‘mandatory direct credit’. Receiving dividends this

way means that shareholders receive dividend funds quicker. It also means the Company

reduces its environmental impact, incurs lower administration costs and reduces the risk of

cheque fraud.

To have your dividends paid directly into your bank account, please provide your bank details to

our Registrar, Computershare, either by accessing Computershare’s Investor Centre at

investorcentre.co.uk or by telephone on +44 370 703 0118. We will hold your dividends for you

until you provide valid bank details and charges may be applied to reissue any outstanding

dividend payments.

If you are based overseas, Computershare can offer an international payment option to have

your dividends paid into your local account in a preferred currency. Please register online by

visiting investorcentre.co.uk, where you can review the full details and associated fees.

Share dealing facility

The Company’s shares can be traded through most banks, building societies, stockbrokers or

‘share shops’. In addition, UK-based shareholders can buy or sell the Company’s shares using

ashare dealing facility made available by Computershare, which includes internet and postal

share dealing.

Internet share dealing

Internet share dealing is available to shareholders residing in the UK. This service offers

shareholders a straightforward way to buy or sell the Company’s shares on the London Stock

Exchange. The commission is 1.4%, subject to a minimum charge of £40. In addition, stamp duty,

currently 0.5%, is payable on purchases. Real-time dealing is available during UK market hours

(08:00 to 16:30). In addition, you can place a sale instruction outside of market hours.

To access the service, log on to computershare.com/dealing/uk. Shareholders must have their

Shareholder Reference Number (SRN) available. The SRN appears on share certificates.

Internet share dealing is only available to residents in either the UK, Channel Islands or Isle of Man.

Postal share dealing service

The postal share dealing service offers a way to sell or purchase shares (subject to availability).

Touse the service you must be a resident of the UK or one of the permitted jurisdictions. A full

listofpermitted jurisdictions can be found at computershare.com/dealing/uk. If you wish to use

theservice, you can download a postal share dealing form and the terms and conditions at

computershare.com/dealing/uk. The fee for this service is 1.4% of the value of each sale or purchase

and is subject to a minimum charge of £40. Stamp duty of 0.5% may be payable on purchases.

Detailed terms and conditions for both internet and postal dealing are available upon request by

calling +44 370 702 0000.

Shareholder Information

Reckitt Annual Report and Accounts 2025

211

Strategic report Governance Financial statements Other information

Electronic shareholder communications

We encourage all shareholders to receive an email notification when shareholder documents

become available online, to reduce our impact on the environment. An election to receive

electronic shareholder communications will:

• Result in cost savings to the Company since less paper documentation will need to be

produced and posted

• Allow for quicker and more effective communications with shareholders

• Support Reckitt’s corporate responsibility profile

Shareholders can register for electronic communications by registering at investorcentre.co.uk.

Shareholders who have elected for electronic communications will receive an email whenever

shareholder documents are available on the Company’s website. Shareholders who have elected

by deemed consent, in accordance with the Companies Act 2006, will receive a hard copy notice

of availability of a document on the Company’s website and are entitled to request a hard copy of

any such document, at any time, free of charge from Computershare. Shareholders can revoke

their consent to receive electronic communications at any time by contacting Computershare.

The Company’s 2025 Annual Report and Notice of the 2026 AGM are available to view at

reckitt.com. The Investor section of the website also contains up-to-date information for

shareholders to view throughout the year, including:

• Detailed share price information

• Financial results

• Regulatory announcements

• Dividend history, payment dates and amounts

• Access to shareholder documents including the Annual Report and Notice of AGM

• Share capital information

Analysis of shareholders as at 31 December 2025

Distribution of shares by type of shareholder No. of holdings Shares

Nominees and institutional investors 2,611 693,023,698

Individuals 9,011 9,065,641

Total 11,622 702,089,339

Size of shareholding No. of holdings Shares

1–500 6,628 1,242,283

501–1,000 1,747 1,263,697

1,001–5,000 1,775 3,661,735

5,001–10,000 299 2,161,039

10,001–50,000 532 13,104,019

50,001–100,000 177 12,295,489

100,001–1,000,000 355 119,533,095

1,000,001 and above 109 548,827,982

Total 11,622 702,089,339

American Depositary Receipts (ADRs)

ADRs are dollar-denominated securities that represent the ownership of ordinary shares in a

non-US company, quoted and traded in US dollars in the US securities market. ADRs facilitate the

purchase, holding and sale of non-US shares by US investors. Dividends are paid to investors in

US dollars.

Reckitt Benckiser Group plc ADRs are traded on the over-the-counter (OTC) market under the

symbol RBGLY. Five ADRs represent one ordinary Reckitt share. J.P. Morgan Chase Bank N.A. is

the Depositary. The table below provides details of the identification of Reckitt securities on the

US market place and the London Stock Exchange.

Symbol Security Listing/trading CUSIP/ISIN

RBGLY US security (ADR) OTCQX 75655303

RKT.L. Ordinary share London Stock Exchange GB00BSZBP530

Shareholder Information continued

Reckitt Annual Report and Accounts 2025

212

Strategic report Governance Financial statements Other information

ADR Depositary Bank

J.P. Morgan Chase Bank N.A. sponsors and administers the Reckitt ADR facility.

J.P. Morgan ADR shareholder services can be contacted as follows:

J.P. Morgan Chase Bank N.A.

383 Madison Avenue, Floor 11, New York, NY 10179

Telephone number for general queries: +1 800 990 1135

Telephone number from outside the US: +1 651 453 2128

Website: shareowneronline.com

Company Secretary

Catheryn O’Rourke

Registered office

103–105 Bath Road, Slough, Berkshire SL1 3UH, United Kingdom

Telephone: +44 1753 217 800

Website: reckitt.com

Registered in England and Wales, No. 6270876

Company status

Public Limited Company

Auditor

KPMG LLP

Solicitors

Slaughter and May

Registrar

The Company’s Registrar, Computershare, is responsible for maintaining and updating the

shareholder register and making dividend payments to shareholders. If you have any queries

relating to your shareholding, please contact Computershare.

Computershare Investor Services PLC

The Pavilions, Bridgwater Road, Bristol BS99 6ZZ

Shareholder helpline telephone: +44 370 703 0118

Website: computershare.com/uk

Share buyback programme

On 24 July 2025, the Company announced the continuation of the share buyback programme

and the intention to buy back £1 billion worth of shares over 12 months from the start of the

programme.

Charity donation

ShareGift is a UK registered charity (No. 1052686) which specialises in realising the value locked

up in small shareholdings for charitable purposes. The resulting proceeds are donated to a wide

range of charities, reflecting suggestions received from donors. If you have only a small number

of Reckitt shares which are uneconomic to continue holding, you may wish to consider donating

them to ShareGift. Please visit sharegift.org/donate-shares or telephone +44 207 930 3737 for

more information.

Unsolicited mail

We are legally obliged to make our register of shareholders available to the public, subject to a

proper purpose test. As a result, some shareholders might receive unsolicited mail. Shareholders

wishing to limit the amount of such mail should write to the Mailing Preference Service, MPS

FREEPOST 29 LON20771, London W1E 0ZT, or register online at mpsonline.org.uk.

Share fraud and ‘boiler room’ scams

Share fraud is a deceptive practice that induces investors to make sales and purchases based

on inaccurate information and in violation of security laws. In boiler room scams, fraudsters will

entice investors into scams through increased persuasion and high-pressure tactics through cold

calling or random contact.

Reckitt is aware of these deceptions and urges shareholders who are offered unsolicited

investment advice, discounted shares, a premium price for shares, or free company or research

reports to investigate thoroughly before making any decision.

If you receive any form of unsolicited investment advice, please take the following steps:

• Confirm the name of the person and/or organisation

• Check the Financial Conduct Authority’s (FCA) Financial Services Register at register.fca.org.uk

to ensure they are authorised

• Use the details on the Financial Services Register to contact the firm

• Call the FCA Consumer Helpline on +44 800 111 6768 (freephone) or 0300 500 8082 (from the

UK), if there are no contact details on the Register or if they are out of date

• Search the FCA’s list of unauthorised firms and individuals at

fca.org.uk/consumers/unauthorised-firms-individuals to avoid doing business with reported

offenders

• If you are approached by fraudsters please contact the FCA using its helpline or share fraud

reporting form

• Consider getting independent financial advice

Using an unauthorised firm to buy or sell shares or other investments will prohibit access to the

Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) should the

investment be unsuccessful. Remember: if it sounds too good to be true, it probably is. If you

think you have been a victim of these scams, the matter should be reported to the Police and to

Action Fraud. For more information, please visit the Serious Fraud Office website at

sfo.gov.uk/contact-us/reporting-serious-fraud-bribery-corruption.

Shareholder Information continued

Reckitt Benckiser Group plc

Registered office

103-105 Bath Road

Slough, Berkshire

SL1 3UH, UK

Registered in England and Wales

No 6270876