Announcements

RB Press release - 27/10/2008
Q3 Results 2008 - Excellent Momentum in Q3

• Like-for-like (“LFL”) net revenue growth of +10%, consistent with the strong momentum of the first half of the year.
• Gross margin +90bp to 58.8%: adjusted operating margin +100bp to 22.8%.
• Adjusted net income +31% (actual exchange): adjusted diluted EPS of 39.5p (+33%).

Year-to-date (“YTD”) highlights:

• LFL net revenue growth of +10%, strongly driven by growth in the Group’s 19 Powerbrands.
• Gross margin +80bp to 58.5%: adjusted operating margin +70bp to 21.3%.
• Adjusted net income +22% (actual exchange): adjusted diluted EPS of 103.4p (+24%).
• Net debt of £1,077m reflects Adams acquisition, partially offset by ongoing strong cash flow generation.
• Net working capital of minus £1,002m: £176m improvement versus year-end December 2007.

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

“Reckitt Benckiser continued its excellent momentum in Q3, with like-for-like growth of +10%. Strong growth came across all regions and Powerbrands, behind heavy media investment and the success of innovations such as Finish Quantum and Vanish Intelligence.

As a result of this momentum in the underlying business, we are raising our full year target for net revenue growth to +13% from at least +11-12% (including Adams, base £5,220m) at constant exchange. For net income growth, we are confident of achieving at least our previously communicated target of +11% at constant exchange, or around +21% at actual exchange (excluding restructuring, base £905m).”

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