Announcements

RB Press release - 02/11/2010
Strong Q3 Results - New FY10 Targets Set For Total Group

Results at a glance (unaudited)	Q3 £m	% change actual exchange	% change constant exchange	YTD £m	% change actual exchange	% change constant exchange
Net Revenue	2,112	+11	+7	6,176	+9	+6
Operating Profit	564	+21	+16	1,528	+19	+16
Net Income	426	+19	+14	1,154	+19	+16
EPS (diluted)	58.4p	+18		157.6p	+17

Year to date (“YTD”) highlights:

• Total net revenue +6% (constant exchange) to £6,176m. Excluding Reckitt Benckiser Pharmaceuticals (“RBP”), net revenue was ahead +5% (at constant), supported by successful new product initiatives and investment in the Group’s 17 Powerbrands.


• Gross margin +80bp to 60.2%: operating margin +210bp to 24.7%.


• Adjusted net income +19% (actual exchange): diluted EPS of 157.6p (+17%).


• Net working capital of minus £1,118m, £139m above the 31 December 2009 level.


• Net cash of £471m (31 December 2009: £220m), as a result of strong free cash flow generation partially offset by the payment of two dividends totalling £774m and the buy back of the remaining rights to Suboxone and Subutex in Europe and Rest of the World.

Q3 highlights:

• Total net revenue +7% (constant exchange), +5% (constant) ex-RBP.


• Gross margin +80bp to 60.8%: operating margin +220bp to 26.7%.


• Adjusted net income +19% (actual exchange): diluted EPS of 58.4p (+18%).

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

“Reckitt Benckiser achieved strong results for the first nine months, with net revenue growth of +6% and net income growth of +16%, both at constant exchange. Ex-RBP, the business performed well. Net revenue growth of +5% and operating profit growth of +10% (both at constant) were in line with this year’s targets, benefiting from an excellent performance in Developing Markets and the success of Powerbrand innovations such as the Lysol / Dettol No Touch Hand Soap System.

For the full year, we are now targeting net revenue growth of +6% and net income growth of +16% for the total Group (both at constant exchange and excluding SSL), with exchange possibly adding around +2% to these numbers. For the business ex-RBP, there is no change to our previously communicated full year targets.”

To view the full press release please click on the link below