Consumer goods giant Reckitt Benckiser announced on Friday, July 24, 2026, that it has agreed to divest its Russian Hygiene business to Arnest Management. The financial details of the deal were not disclosed. The transaction is subject to customary conditions, including relevant UK regulatory approvals, and is expected to finalize during the second half of 2026.
Reckitt's Russian Hygiene unit accounted for approximately 1% of its core net revenues in the year ended December 31, 2025. The company stated that the divestment is not anticipated to have any material impact on its group adjusted operating profit or adjusted earnings per share for the fiscal year 2026. Despite the sale of its hygiene division, Reckitt will retain ownership of its Russian Health business, continuing to supply consumer health products in the region.
This divestment follows a period of challenges for Reckitt in Russia due to stricter EU sanctions. In April 2026, the company reported that changes to the international sanctions regime had led to a double-digit decline in like-for-like net revenue from Russia, particularly affecting its household care and germ protection business. This contributed to a 200-basis-point hit to emerging markets' like-for-like net revenue growth. Reckitt's Russian unit had been developing local products and registering intellectual property to replace its hygiene portfolio amidst these sanctions.
Reckitt's efforts to transfer ownership of its Russian business began in April 2022, shortly after Russia's full-scale invasion of Ukraine, making it one of the first major personal goods manufacturers to initiate such a process. While the company faced declining sales due to the sanctions, it maintained its 2026 net-revenue target of 4-5% growth, despite initial stock slips. As of 08:10 BST on July 24, Reckitt shares were up 0.22% at 4,949p.
