Announcements

RB Press release - 08/02/2006
Record 2005 Exceeding Targets 2006 Targets Another Strong Growth Year

Results at a Glance (unaudited)	Q4 £m	% change actual exchange	% change constant exchange	Full Year £m	% change actual exchange	% change constant exchange
Net Revenues	£1,107m	+8%	+5%	£4,179m	+8%	+6%
Operating Profit	£285m	+20%	+17%	£840m	+12%	+10%
Net Income	£227m	+15%	+13%	£669m	+16%	+14%
EPS (diluted)	30.8p	+16%		90.0p	+17%

• Net revenues grew 8% (5% constant) to £1,107m in Q4, a record quarter for the Company, and 8% (6% constant) to £4,179m full year (FY).
• Operating profit increased 20% in Q4 to £285m and 12% in FY to £840m. FY operating margins improved by 80 basis points (bps) to 20.1%, achieving the 2006 target a year early.
• Net income grew 15% in Q4 to £227m and 16% in FY to £669m.  Fully diluted EPS grew 16% in Q4 to 30.8p, and 17% in FY to 90.0p, the growth rate benefiting from the share buyback program.
• Strong cash generation resulted in net funds of £887m at the year end, an increase of £255m over the year, after share buybacks of £300m and dividends of £262m this year.  The Company has confirmed its intention of a £300m buyback program in 2006.
• The Board recommends a final dividend of 21p an increase of 17%, to bring the full year dividend to 39p an increase of 15% on 2004.
• Reckitt Benckiser completed the acquisition of Boots Healthcare International (BHI) for £1,926m on 1st February 2006.

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

"Reckitt Benckiser sustained its robust growth ahead of the market resulting in our highest ever quarter for net revenues, operating profit and net income.

As a result, 2005 was another year of solid progress exceeding our earlier targets.  Growth came across all regions and was strongly driven by new products like Cillit / Easy Off Bang, Finish 4in1, Air Wick Freshmatic and Vanish Oxi Action Max.  Benefiting from strong cost containment operating margin reached our 20% target a year early.

The recently completed acquisition of BHI gives us a new platform for growth in the attractive OTC healthcare market.  In 2006, our major focus for this business will be on successful integration and realizing the promised synergies while gradually preparing the business for growth. 

Our 2006 targets, incorporating BHI, are for net revenue growth in the mid teens at constant exchange (base £4,179m), and net income growth in the low double digits (excluding restructuring charges and one-off tax credits to give a base of £653m) at constant exchange.  The targets should be seen against a background of increasingly challenging market conditions and still limited visibility into the BHI business after only one week of ownership."

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