2010 - A Strong Year for Reckitt Benckiser; Further Growth Targeted In 2011

PARSIPPANY, N.J., Feb. 11, 2011 /PRNewswire/ -- Reckitt Benckiser (RB) plc, a world leader in household, health and personal care (with U.S. headquarters in Parsippany, NJ) and parent of Clearasil, Lysol, Woolite and other iconic brands, announced financial results for the fourth quarter of 2010.

Highlights:

• Global total net revenue growth of +7% (at constant), to 8,453m pounds Sterling.  
  • Global Group excluding SSL +6% LFL.
• Growth in North America was delivered by successful innovations and marketing investments behind powerbrands such as Lysol, Finish, Airwick and French's.  
• Global total gross margin +40bp to 60.6%: global total adjusted operating margin +200bp to 26.4%.  
• Global Total adjusted net income +17% (actual exchange) and adjusted diluted EPS of 226.5p (+16%).
• The Board recommends a +14% increase in the final dividend, bringing the total dividend for 2010 +15% versus 2009.  

Commenting on these global results, Bart Becht, global Chief Executive Officer, stated:

"Reckitt Benckiser enjoyed another year of market-beating results, despite declining global market growth.  As targeted, like-for-like net revenue growth was +6% for the Group excluding SSL and +5% for the base business.  Total adjusted net income growth of +15% (at constant) was also strong.  This is further evidence that our strategy of focusing on our Powerbrands, behind new product initiatives and high levels of marketing investment, is one that continues to deliver.  

For 2011, we are aiming for another year of above industry-average growth.  The targets for the total Group (including SSL) are for +12% net revenue growth and +10% adjusted net income growth at constant exchange."

Commenting on performance in North America (NA), Rob de Groot, Executive Vice President, North America, Australia, New Zealand, said:

"Innovations such as the Lysol® Healthy Touch No-Touch Hand Soap System in conjunction with our Lysol® Neutra-Air Fabric Refresher helped to drive growth in North America.  We were also very pleased with the performance of the Finish, Airwick and French's brands, which are favorites for North American consumers.  We are looking forward to introducing new innovations on our brands to help achieve further growth in 2011."  

North America

North America is part of the North America, Australia and New Zealand region. In the full year 2010, total net revenue increased, with growth coming from Health & Personal Care, Surface Care, Home Care and Dishwashing.  The launch of the Lysol Healthy Touch No Touch Hand Soap System drove growth in Health & Personal Care, while Surface Care was supported by the Lysol surface care range.  The launch of Airwick Ribbons contributed to the performance in Home Care, with Quantum supporting the increase in Dishwashing.

Food increased as a result of a very good performance across the consumer portfolio, in particular further growth for French's Yellow Mustard including Honey Mustard Dipping Sauce, French's Fried Onions and Frank's Red Hot Sauce, with its new launch of Sweet Chili.

New Initiatives for first half of 2011  

In Health & Personal Care:

• Launch of a stainless look version of the Lysol Healthy Touch No-Touch Hand Soap System in the U.S., with a new range of fresh-fragranced soaps, particularly designed for kitchen use.

In Auto Dishwashing:

• Continued support of the Finish Challenge, an in-store program designed to prove Finish's superior performance over its competitors.

In Home Care:

• Roll-out of Airwick Double-chamber scented oils warmer, answering the consumer need for more fragrance dispersion with scents that last, even in larger rooms.
• Launch of Airwick Freshmatic Oder Detect, which provides an instant boost of freshness when odor is detected, on top of regular automatic sprays of freshness.

In Food:

• Launch of Franks Red Hot Thick sauce, which is a game changer in the hot sauce category extending hot sauce as an everyday-use condiment.
• Launch of French's Dijon Mustard, extending "America's Favorite Mustard" into the Dijon mustard product line featuring real Chardonnay wine.

About RB (Reckitt Benckiser)

Reckitt Benckiser (RB) is a world leader in household, health and personal care.

It is a FTSE top 25 company and since 2000 net revenues have doubled and the market cap has quadrupled. Today it is the global No 1 or No 2 in the majority of its fast-growing categories, driven by an exceptional rate of innovation – typically about 35% of net revenue comes from innovations launched in the prior 3 years. It has a strong portfolio led by 19 global powerbrands which are: Finish, Lysol, Dettol, Vanish, Woolite, Durex, Calgon, Airwick, Harpic, Bang, Mortein, Veet, Nurofen, Clearasil, Strepsils Gaviscon, Mucinex, Scholl and French's, and they account for 70% of net revenue.

RB people are at the heart of the company's success. They have an intense drive for progress and action and a desire to outperform wherever they focus, including in CSR where the company has the most ambitious corporate responsibility programme in the industry through its Carbon 20 initiative.

Headquartered in the United Kingdom, the company employs about 25,000 people worldwide, with operations in over 60 countries and sales in almost 200 countries.

For more information visit RB.COM

The preliminary results for the year ended 31 December 2010 and the results for the year ended 31 December 2009 have been prepared in accordance with International Financial Reporting Standards ("IFRSs") as adopted by the European Union and IFRSs as issued by the International Accounting Standards Board.  The unaudited financial statements for 2010 are prepared using accounting policies in accordance with those set out in the Group's 2009 Annual Report and Financial Statements, and as updated by the 2010 Interim Statement.  The financial information set out in the announcement does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.  Statutory accounts for the year ended 31 December 2009 were approved by the Board of Directors on 15 March 2010 and delivered to the Registrar of Companies.  The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006.  The statutory accounts for the year ended 31 December 2010 will be finalized on the basis of the financial information presented by the Directors in this preliminary announcement, and will be delivered to the Registrar of Companies following the Group's Annual General Meeting.

Cautionary note concerning forward-looking statements

This document contains statements with respect to the financial condition, results of operations and business of Reckitt Benckiser and certain of the plans and objectives of the Group with respect to these items.  These forward-looking statements are made pursuant to the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995.  In particular, all statements that express forecasts, expectations and projections with respect to future matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of interest or exchange rates, the availability of financing to the Company, anticipated cost savings or synergies and the completion of strategic transactions are forward-looking statements.  By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future.  There are a number of factors discussed in this report, that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including many factors outside Reckitt Benckiser's control.  Past performance cannot be relied upon as a guide to future performance.

SOURCE Reckitt Benckiser (RB) plc