Announcements

RB Press release - 11/11/2003
Q3 Results 2003

Record Quarter - Full Year Targets Raised

Results at a Glance	Q3	% change actual exchange	Year to Date	% change actual exchange	% change constant exchange
Net Revenues	£989m	+13	£2,823m	+7	+7
Operating Profit	£172m	+25	£452m	+14	+12
Net Income	£123m	+29	£322m	+20	+17

• Net revenues grew by 13% (9% at constant exchange) to £989m in Q3, and by 7% (7% constant) to £2,823m in year to date (YTD).
• Operating profit increased by 25% in Q3 to £172m and by 14% YTD to £452m. Year to date operating margins improved 100 basis points (bps) to 16.0% behind a 160 bps gross margin improvement, offset by a significant increase in marketing investment.
• Net income grew by 29% in Q3 to £123m and by 20% in YTD to £322m.
• Strong cash generation resulted in a £267m net cash inflow after dividends in YTD 2003. Net Funds were £162m at the quarter end, an inflow of £67m in the quarter.
• Recent initiatives contributing significantly to growth in the quarter and year-to-date included Vanish Oxi Action fabric treatment; Finish/Calgonit 3-in-1 Brilliant in Europe and Electrasol Gelpacs in North America in automatic dishwashing; Veet Express Roll-On and Wax Strips for sensitive skin in depilatories; Lysol / Dettol disinfectant spray and Dettol Easy Mop in surface care; and Airwick Decosphere in air care.

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

"Q3 was a strong quarter. Both net revenue and net income growth were well ahead of the full year targets. Western Europe continued its strong performance. Net revenue and profit growth strongly recovered in North America behind the success of its new products. All developing markets saw continued good momentum. Strong net revenue growth combined with good operating margin expansion resulted in significant profit growth."

"As a result, we are raising our full year targets. We now look for net revenue growth of over 7% at constant and actual exchange (previously up to 6%) and for net income growth of over 18% at actual exchange (previously around 14%). Net, Reckitt Benckiser is firmly on track to deliver another strong year."

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