Announcements

RB Press release - 10/02/2010
2009: A Very Good Year, Further Growth Targeted in 2010

Results at a glance (unaudited)	Q4 £m	% change actual exchange	% change constant exchange	FY £m	% change actual exchange	% change constant exchange
Net Revenue	2,063	+13	+10	7,753	+18	+8
Operating Profit - reported	605	+15	+14	1,891	+26	+14
Operating Profit - adjusted *	605	+15	+14	1,891	+23	+12
Net Income - reported	448	+14	+14	1,418	+27	+15
Net Income - adjusted *	448	+14	+14	1,418	+24	+13
EPS (diluted) - reported	60.3p	+10		194.7p	+26
EPS (diluted) - adjusted *	60.3p	+10		194.7p	+23

* Adjusted results (including % change figures) exclude exceptional items (see page 2 of PDF). There are no exceptional items for the Full Year (FY) 2009 (Q4 2009: £nil) compared to an exceptional charge of £30m pre-tax in FY 2008 (Q4 2008: £nil).

FY highlights:

• Total net revenue +8% (constant exchange), driven by growth in the Group’s 19 Powerbrands. Excluding Reckitt Benckiser Pharmaceuticals (“RBP”), net revenue was ahead +6% (at constant).
• Gross margin +90bp to 60.2%: adjusted operating margin +100bp to 24.4%.
• Adjusted net income +24% (actual exchange): adjusted diluted EPS of 194.7p (+23%).
• Net cash of £220m (2008: net debt of £1,096m), as a result of ongoing strong free cash flow generation.
• Net working capital of minus £1,257m, a £160m improvement versus the 31 December 2008 level.
• The Board recommends a +19% increase in the final dividend to 57.0p per share, bringing the total dividend for 2009 to 100.0p (+25% versus 2008).

Q4 highlights:

• Total net revenue growth of +10% (constant exchange), +6% ex-RBP.
• Gross margin +100bp to 62.3%: adjusted operating margin +50bp to 29.3%.
• Adjusted net income +14% (actual exchange): adjusted diluted EPS of 60.3p (+10%).

Commenting on these results, Bart Becht, Chief Executive Officer, said:

“Reckitt Benckiser had a very good year in 2009 with net income growth of +13%, behind strong revenue growth of +8% (both at constant exchange). This performance was supported by the Group’s 19 Powerbrands, behind significant investment in media and marketing and successful new product initiatives.

Based on the current market outlook, we are confident of achieving continued good growth in 2010. Due to the uncertain timing of generic competition to Suboxone in the U.S., it is not considered appropriate to communicate targets for the total Group. For the business excluding RBP, our targets in 2010 are for net revenue growth of +5% (base: £7,144m) and for operating profit growth of +10% (base: £1,512m), both at constant exchange.”

To view full press release, please click on the link below.