Announcements

RB Press release - 11/02/2004
Full Year Results 2003

Record Results in 2003 Further Sustained Growth Targeted in 2004

Results at a Glance	Q4	% change actual exchange	% change constant exchange	Full Year	% change actual exchange	% change constant exchange
Net Revenues - Old Basis	£968m	+8	+6	£3,791m	+7	+7
Net Revenues - New Basis*	£953m	+8	+6	£3,713m	+7	+7
Operating Profit	£227m	+25	+23	£679m	+18	+15
Net Income	£167m	+19	+18	£489m	+20	+17
* After restatement following adoption of FRS 5 Application Note G - see accounting policy note on page 2

• The Company has adopted the new accounting standard on revenue recognition. This reclassifies coupons from a marketing expense to a deduction from net revenues, and has the effect of reducing reported net revenues by £78m in the full year (2002 £77m) and by £15m in Q4 (2002 £17m). There is no impact on profits.
• Q4 Net revenues grew by 8% (6% at constant exchange) to £953m and by 7% (7% constant) to £3,713m for the full year.
• Operating profit increased by 25% in Q4 to £227m and by 18% FY to £679m. Full Year operating margins improved 160 basis points (bps) to 18.3% behind a 190bps gross margin improvement partially offset by a substantial increase in marketing investment.
• Net income grew by 19% in Q4 to £167m, and by 20% in FY to £489m.
• Net cash flow increased 13% to £656m. Net funds were £292m at the year-end, from a net borrowing position of £105m at year-end 2002.
• The Board is recommending a final dividend of 14 pence to give a total dividend of 28 pence for the year, an increase of 10% over 2002, in line with previously communicated policy. The dividend is covered 2.5 times by 2003 net income.

Commenting on these results and prospects for 2004, Bart Becht, Chief Executive Officer, said

"Reckitt Benckiser did well in 2003. Particularly pleasing was the rate of net revenue growth, which was one of the strongest since the merger in 1999. Margins and profits also continued to advance at a healthy pace. Growth was broad-based. Western Europe continued its strong growth of the last few years, while North America and Developing Markets growth picked up as the year progressed."

"For 2004 we are looking to continue our strong organic growth. Our in-going targets are for net revenue growth of 5% plus and low double digit net income and EPS growth, both at constant exchange."

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