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RB Press release - 25/10/2011
Strong Q3 2011 Results – Full Year 2011 Targets Confirmed

Results at a Glance
Q3
£m
% change actual exchange
% change constant exchange
YTD £m
% change actual exchange
% change constant exchange
Net Revenue
2,448
+16
+15
  7,069  +14  +15
 - Like-for-like growth*
 +4%      +4%    
Operating Profit  - reported
638
+13
+14
  1,687  +10  +12
 Operating profit – adjusted** 645  +14  +15 1,748  +14  +16
Net income – reported
465
+9
+9
  1,224  +6  +7
Net income – adjusted**
  470  +10  +10 1,272
 +10
+12
EPS (diluted) – reported
63.2p
+8
    166.3p +6
 
EPS (diluted) – adjusted**
  63.9p  +9   172.9p
 +10
  

* Like-for-like (“LFL”) growth excludes the impact of changes in exchange rates, major acquisitions (SSL & Paras) and disposals.
** Adjusted results (including % change figures) exclude exceptional items (see page 2).

Q3 highlights (at constant exchange unless stated):

  • LFL growth (excluding SSL and Paras) +4% (+3% ex-RBP).
  • SSL net revenue growth of 5% to £227m.
  • Total net revenue growth of +15% to £2,448m.
  • Adjusted net income +10% (actual exchange, +10% constant).

Year to date highlights (at constant exchange unless stated):

  • LFL growth (excluding SSL and Paras) +4% (+3% ex-RBP).
  • SSL net revenue growth of +2% on a comparable basis to £652m.
  • Total net revenue growth of +15% to £7,069m.
  • Adjusted net income +10% (actual exchange, +12% constant).
  • Net working capital of minus £941m (YE 2010 £914m). Net debt of £2,172m (YE 2010: £2,011m), with strong cash flow offset by two dividends, acquisitions and restructuring.

Commenting on these results, Rakesh Kapoor, Chief Executive Officer, said:

“Reckitt Benckiser had a strong quarter, with like-for-like growth of +4% (total growth of +15%), driven by initiatives such as Mucinex Fast Max (USA), Nuromol and Strepsils Warm, Finish Quantum (USA) and Dettol launches in Europe and Developing Markets. For the year to date, net revenue growth of +15% and adjusted net income growth of +12% (both at constant FX) are ahead of the Group’s FY 2011 targets.

In Q4 we continue to target further strong LFL growth. Total growth will slow as we lap the acquisition of SSL and the buy back of distribution rights in the European & Rest of World RBP business. We will also have a one-off decline in revenue and profit at RBP*. Assuming a normal ‘flu season, we are on track to reach our FY 2011 targets of +12% growth in net revenue and +10% growth in net income (both at constant exchange). Delivery of our full year targets will mean Reckitt Benckiser achieving another year of above industry-average growth in very challenging market conditions.”