Announcements

RB Press release - 09/02/2005
Reckitt Benckiser announces Full Year Results 2004

FIFTH STRAIGHT YEAR OF ABOVE INDUSTRY GROWTH
2005 TARGETS FURTHER GROWTH

Results at a Glance (unaudited)	Q4 £m	% change actual exchange	% change constant exchange	Full Year £m	% change actual exchange	% change constant exchange
Net Revenues	1,022	+7	+11	3,871	+4	+10
Operating Profit	243	+7	+11	759	+12	+18
Net Income	201	+20	+25	586	+20	+26
EPS (full dilution)	27.0p	+21		78.3p	+18

• Q4 Net revenues grew by 7% (11% at constant exchange) to £1,022m, the first time a quarter has exceeded £1 billion. Net revenues for the full year grew by 4% (10% constant) to £3,871m.
• Operating profit increased by 7% (11% at constant exchange) in Q4 to £243m - the highest ever quarter - and by 12% (18% at constant exchange) to £759m for the full year. Full Year operating margins improved 130 basis points (bps) to 19.6% behind a 150 bps gross margin improvement somewhat offset by a significant increase in marketing investment.
• Net income grew by 20% in Q4 to £201m and by 20% in the full year to £586m, benefiting from a non-recurring tax credit of £14m. Fully diluted EPS for the year grew 18% to 78.3p.
• Under International Financial Reporting Standards (IFRS) reported net income and EPS would decrease by around 1% - 1.5% compared to UK GAAP, a minor change not affecting growth rates.
• Net cash flow increased to £664m. After dividends of £216m and share buyback of £283m during the year, net funds increased to £638m (£292m) at the year-end.
• The Board is recommending a final dividend of 18 pence (+29%) to give a total dividend of 34 pence for the year, an increase of 21% over 2003, in line with policy. The dividend is covered 2.4 times by 2004 net income.

Commenting on results and prospects for 2005, Bart Becht, Chief Executive Officer, said

"Q4 was a very good quarter for Reckitt Benckiser. For the first time, the Company broke the billion pound net revenue barrier and earned over £200m net income for the quarter - equivalent to the underlying profit for the full year in 1999. As a result, Reckitt Benckiser exceeded raised targets on net revenue and net income growth and outperformed the industry for the fifth year in a row.

"In 2005 we are looking to continue our strong organic growth. Our in-going target is for net revenue growth of 5% to 6% at constant exchange. The base for net income targets excludes non-recurring tax credit (£14m) and will be restated for IFRS. Off this base, we are targeting low double-digit net income and EPS growth at constant exchange. Achieving these targets will deliver another year of strong organic growth."

To view the full press release, click on the icon at the top of the announcement to download the pdf.