Announcements

RB Press release - 24/07/2006
Strong First Half - 2006 Profit Target Raised

Results at a Glance		Q1	% change	% change
		£m	actual exch	constant exch
Net Revenues		£1,162m	+18%	+13%
Operating Profit as reported		£154m	-4%	-7%
Net Income as reported		£110m	-11%	-14%
EPS (fully diluted) as reported		14.9p	-10%
Operating Profit adjusted*		£196m	+23%	+18%
Net Income adjusted*		£141m	+14%	+10%
EPS adjusted* (fully diluted)		19.1p	+15%

*Adjusted to exclude the impact of the restructuring charge.

• Net revenues increased 18% (13% at constant exchange) to £1,162m. The base business (excluding BHI) grew 10% (6% constant) to £1,085m. BHI contributed net revenues of £77m in the two months of ownership.
• Operating profit before restructuring increased 23% (18% constant) to £196m. Gross margins increased 30 bps to 54.4%. Operating margins before restructuring increased by 70bps to 16.9%.
• Net income was £14m lower after restructuring charges relating to the BHI acquisition of £42m. Excluding the after tax impact of restructuring, net income increased 14% to £141m.Net borrowings at 31st March were £825m reflecting the £1.926bn cost of the BHI acquisition less net funds of £887m at the end of last year and further strong cash inflow in the quarter. 2.2m shares were repurchased in the quarter at a cost of £45m.

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

"Reckitt Benckiser made a strong start to 2006 with underlying growth on the base business of 6% and a better than expected contribution from BHI in its first two months. Underlying growth was driven by the success of initiatives like Vanish Oxi Action Crystal White, Cillit Bang Stain and Drain and Airwick Freshmatic supported by increasing marketing investment.

The integration of BHI is proceeding on plan and we are increasingly confident of delivering the promised synergy targets.

The results position us well to achieve our full year targets for 2006 of net revenue growth in the mid teens (base £4,179m) and net income growth (excluding restructuring and one-off tax credits) in the low double digits (base £653m), both at constant exchange, from the enlarged business. "

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