Announcements

RB Press release - 13/11/2002
Outstanding Q3 continues very strong trends

Results at a Glance	Q3	% change actual exchange	Year to Date	% change actual exchange	% change constant exchange
Net Revenues	£876m	+4	£2,632m	+4	+7
Operating Profit	£138m	+19	£395m	+14	+15
Net Income Normalized*	£95m	+28	£268m	+24	+25
Net Income Reported*	£95m	+40	£268m	+20	+21
*see financial review - basis of comparatives on page 6.

• Net revenues grew by 4% (9% at constant exchange) to £876m in Q3, and by 4% (7% constant) to £2,632m in year to date (YTD).
• Operating profit increased by 19% in Q3 to £138m and by 14% YTD to £395m. Year to date operating margins improved 130 basis points (bps) to 15.0% behind a 320 bps gross margin improvement, offset by a significant increase in marketing investment.
• Normalized net income grew by 28% in Q3 to £95m and by 24% in YTD to £268m. Reported net income was also £95m in Q3 and £268m in YTD.
• Strong cash generation and further reductions in net working capital resulted in a £236m reduction in net borrowings in YTD 2002 to £231m.
• Recent initiatives contributing significantly to growth in the quarter included Finish/Calgonit 3-in-1 Total in automatic dishwashing, Air Wick Click Spray, Crystal Air and Crystal Auto in air care, Vanish Action Ball in fabric treatment, Veet Mousse and Aqua System in depilatories and the range of surface care wipes.

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

"Reckitt Benckiser had a very good Q3, even considering last year's Q3 was a weaker comparative. Western Europe and North America achieved particularly strong growth behind the success of our new products, more than offsetting continued weak trading conditions and volatility in many emerging markets.

"These results, and the continuing success of our innovation program, give us increasing confidence in our full year targets of net revenue growth of around 6% at constant exchange and net income growth of around 18%. 2002 shows the sustainability of our strategy with growth in the second half continuing at the same rate as the first."

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