Announcements

RB Press release - 20/02/2002
Reckitt Benckiser Announce 2001 Annual Results

Record Results in 2001

2002 Targets Sustained Growth

Results at a Glance	Q4	% ch	Full Year	% ch
Net Revenues	£900m	+5	£3,439m	+7
Operating Profit	£177m	+20	£525m	+16
Net Income normalized	£123m	+27	£340m	+24
Net Cash Flow from ordinary operations			£416m	+9

• Net revenues grew by 5% (6% at constant exchange) to £900m in Q4, and by 7% (6% constant) to £3,439m in full year (FY). For continuing operations (excluding acquisitions and disposals) net revenue growth was 4% (5% constant) in Q4 and 7% (6% constant) in FY.
• Operating profit increased by 20% to £177m in Q4 and by 16% to £525m in FY. Q4 operating margin improved 250 basis points (bps) to 19.7% behind a 160 bps gross margin improvement. FY operating margins improved 120 bps to 15.3% behind a 80 bps gross margin improvement.
• Normalized net income grew by 27% in Q4 to £123m and by 24% in FY to £340m. Including gains on disposals, FY net income grew 13% to £356m.
• Strong cash generation saw net cash flow from ordinary operations increasing by £34m to £416m aided by a £120m reduction in net working capital. This resulted in a £128m reduction in net borrowings despite the £132m cash cost of acquisitions.

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

"2001 was a very good year for Reckitt Benckiser. We grew net revenues to record levels and gained market share in key product categories behind a substantially higher level of product innovation. This top line growth was leveraged into record operating profits and normalized net income, exceeding the revised targets for the year. Cash generation was also very good as net working capital was cut further and profit improved.

"As in prior years, our 2002 target is to grow faster than the industry, by driving our high growth categories with more innovation and by further strengthening our global brand positions. We are targeting for 4% to 6% net revenue growth at constant exchange. We believe we can leverage this net revenue increase into net income growth of 12% to 15% at constant exchange as we see further opportunities to manage costs down, expand margins and optimize cash generation. Achieving these targets will further demonstrate that Reckitt Benckiser can deliver consistent organic growth."

To view the full 2001 Annual results press release, please view the pdf at the top of this page.