Announcements

RB Press release - 25/07/2005
Robust First Half, Full Year Profit Target Raised

Results at a Glance	Q2 £m	% change actual exchange	% change constant exchange	Year To Date £m	% change actual exchange	% change constant exchange
Net Revenues	£1,028m	+8%	+6%	£2,014m	+8%	+6%
Operating Profit	£185m	+8%	+6%	£345m	+10%	+8%
Net Income	£144m	+13%	+12%	£268m	+17%	+15%
EPS (diluted)	19.3p	+12%		35.8p	+15%

• Net revenues grew by 8% (6% at constant exchange) both in Q2 to £1,028m and in H1 to £2,014m.
• Operating profit increased by 8% in Q2 to £185m and by 10% in H1 to £345m. Half year operating margins improved 30 basis points (bps) to 17.1% due to tight cost control.
• Net income grew by 13% in Q2 to £144m and by 17% in H1 to £268m. EPS diluted grew by 12% in Q2 to 19.3p, and by 15% in H1 to 35.8p.
• Strong cash generation resulted in an increase of £131m in net funds to £763m, reflecting cash inflow offset by increased cash returned to shareholders through progressive dividend and share buyback programs. £292m was returned in the half year, £131m in dividends and £161m in buybacks.
• The Company will return more cash to shareholders through its progressive dividend policy and rolling share buyback program. The interim dividend will be increased to 18.0 pence per share, an increase of 13%. The Company's share buyback program is expected to increase from £300m currently to £350m for 2006.

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

"Reckitt Benckiser turned in robust results in challenging conditions. First half 2005 net revenue grew 6% at constant exchange which is at the top of our full year target range and well ahead of the industry's growth rate driven by the success of new products such as Cillit Bang, Finish 4-in-1 and Airwick Freshmatic. Profitability improved despite the adverse input cost environment. As a result, net income grew 17%, well ahead of the full year target.

"For the full year we continue to expect net revenue growth of 5% to 6% at constant exchange. However we are now raising our target for net income growth to at least the mid teens at actual exchange."

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