17 February 2022

RECKITT (RKT.L)

STRONG 2021 REVENUE, AHEAD OF EXPECTATIONS. 

STRENGTHENED PORTFOLIO.  TRANSFORMATION FIRMLY ON TRACK

¹ Adjusted measures are defined on page 30.

All amounts shown in £m and including IFCN China, with the exception of LFL net revenue and unless otherwise stated. LFL net revenue excludes IFCN China, EnfaBebé, Scholl and Biofreeze for the entirety of the current and prior periods.

Highlights

Full year LFL net revenue growth of +3.5% (+17.4% on a two-year stacked basis¹) ahead of expectations led by a strong performance in Hygiene and a recovery in Health as we exited the year.

·      Q4 LFL net revenue growth of +3.3% with Health (+17.5%) offsetting Hygiene (-6.1%) lapping tough prior year comparators.

·      Strong momentum: Brands less sensitive to COVID dynamics, representing c.70% of the portfolio grew, on average, by mid-single-digits in each quarter of 2021.

·      Strong progress in repositioning our business towards higher growth.  Key highlights include the divestments of IFCN China and Scholl, the proposed disposal of E45, and the acquisition of Biofreeze.  Approximately 9% of the portfolio repositioned.

·      Adjusted operating margin (ex IFCN China) of 22.9% in line with guidance. Adjusted operating loss related to IFCN China of £67m, reflecting difficult trading throughout the year and c.£40m of exit costs incurred immediately prior to the disposal of the business.

·      IFRS operating loss of £804m (2020: £2,160m profit) reflects the loss in relation to the strategic review and disposal of IFCN China.   

·      Proposed full year dividend of 174.6p (2020: 174.6p) reflecting Board recommendation of a final dividend of 101.6p.

Outlook

·      For 2022 we are targeting LFL net revenue growth of between 1-4%.

·      We are targeting growth in adjusted operating margins in 2022, from our base of 22.9%, underpinned by multiple levers, despite significant commodity inflationary pressures.

·      Transformation firmly on track.  We expect to exit 2022 with mid-single-digit LFL net revenue growth and progress towards medium-term adjusted operating margin target in the mid-20s by the mid-20s.

Commenting on the results, Laxman Narasimhan, Chief Executive Officer, said:

"Our journey to rejuvenate sustainable growth is well on track as evidenced by strong LFL growth of 3.5% in 2021, building on the outstanding growth in 2020, for a two-year stack of 17.4%.

Over the last two years, we've significantly strengthened our business. Our innovation pipeline is 50% larger, our brands are stronger and more relevant, and our ability to serve our customers and consumers is greatly improved. We've taken Reckitt's strong performance-driven culture, with its unique sense of ownership, and are evolving it for the better. We've also been active in managing our portfolio, repositioning for faster growth.

The business is showing positive momentum with 62% of our core CMUs holding or gaining share, underpinned by the investments we have already made.  We are therefore targeting both growth in LFL net revenue and an increase in adjusted operating margin in 2022, despite an unprecedented inflationary environment and ongoing uncertainties created by COVID.

We have a unique portfolio of trusted, market-leading brands in structurally attractive categories with significant headroom for growth. This, combined with our progress to date, gives me the confidence in both our near term and medium-term prospects." 

Richard Joyce                                                                                                  +44 (0)7807 418516

Head of Investor Relations                    

Patty O'Hayer                                                                                                   +44 (0)7825 755688

Director, External Relations and Government Affairs

Finsbury                                                                                                                                      

Faeth Birch                                                                                                      +44 (0)7768 943171

Cautionary note concerning forward-looking statements

This announcement contains statements with respect to the financial condition, results of operations and business of Reckitt (the Group) and certain of the plans and objectives of the Group that are forward-looking statements. Words such as 'intends', 'targets', or the negative of these terms and other similar expressions of future performance or results, and their negatives, are intended to identify such forward-looking statements. In particular, all statements that express forecasts, expectations and projections with respect to future matters, including targets for net revenue, operating margin and cost efficiency, are forward-looking statements. Such statements are not historical facts, nor are they guarantees of future performance.

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 that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including many factors outside the Group's control. Among other risks and uncertainties, the material or principal factors which could cause actual results to differ materially are: the general economic, business, political and social conditions in the key markets in which the Group operates; the ability of the Group to manage regulatory, tax and legal matters, including changes thereto; the reliability of the Group's technological infrastructure or that of third parties on which the Group relies; interruptions in the Group's supply chain and disruptions to its production facilities; the reputation of the Group's global brands; and the recruitment and retention of key management.

These forward-looking statements speak only as of the date of this announcement. Except as required by any applicable law or regulation, Reckitt expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

LEI: 5493003JFSMOJG48V108

Strategy and operating model update - on track to achieve medium term targets

·      In February 2020 we set out our strategy to rejuvenate sustainable growth.

·      We play an important role in addressing four of the world's largest problems. How can hygiene be the foundation for health?  How do we support intimate wellness and eradicate the menace of sexually transmitted diseases?  How do we enable consumers to self-care at a time when health systems are under significant pressure?  How do we provide engineered nutrition for infants and for the increasing number of seniors in society?  

·      Our purpose is therefore to protect, heal and nurture in the relentless pursuit of a cleaner, healthier world. 

·      The financial drivers which underpin our strategy are compelling.  We operate in categories with significant headroom for long-term structural growth and a large total addressable market.  Our medium-term growth aspirations in the categories and geographies in which we operate are:

·      We have strong, market-leading brands across the categories in which we operate.

·      We have a focussed growth model centred around the four key pillars of penetration (capturing new consumers and households), market share gains (through superior solutions), and expanding into new places (new geographies and channels) and new spaces (capturing new adjacencies).  

·      Our business is stronger: 

·      Our execution has improved and has been recognised by both customers and suppliers. Based on the most recent Advantage survey of retailers, the percentage of our markets rated 'top tier' by our customers improved by 20 percentage points, to 46%.

·      Our regulatory capability has improved in both the quality and the speed with which we operate.  Our innovation pipeline is 50% larger than the previous year and our investment in digital has driven continued high growth in our eCommerce platforms.

·      Our productivity capabilities are now firmly embedded within the business, and our teams are increasingly approaching productivity as a business-as-usual activity.  Productivity increasingly goes hand in hand with our efforts in sustainability.

·      We are making progress on our sustainability objectives through the year and are pleased that this has been recognised externally, with our MSCI ESG rating improving to AA, and Sustainalytics currently at 22.9, ranking us in the top 15% of our peers. 

·      We are actively managing our portfolio towards higher growth.  We disposed of our IFCN China business and Scholl during 2021 and announced the sale of E45, expected to complete in the second quarter of 2022, and acquired Biofreeze - a US based, double digit net revenue growth, topical analgesic business.  Importantly this also provides us with a strategically important entry into the world's largest pain management market.

·      We are on track to deliver sustainable mid-single-digit LFL net revenue growth as we exit 2022, and to generate adjusted operating margins in the mid-20s by the mid-2020s.

Our Culture

·      Our culture builds on a strong base, by keeping what made us successful in the past, and enhancing it for future success. 

·      We are a company of owners - led by a senior management team with significant share ownership requirements.  In addition, c.50% of our employees own shares in the company.

·      We create - enhanced by investment in science platforms, building a bigger innovation pipeline. 

·      We deliver - and focus on both financial and non-financial metrics to deliver value to all of our stakeholders.  

·      And we have added "care" - for our consumers, customers, communities and the environment.

FY 2021 review

Group net revenue

·      Group net revenue of £13,234m grew by 3.5% on a LFL basis in 2021, reflecting volume growth of 0.6% and price / mix improvements of 2.9%.  Performance was driven by strong growth in Hygiene, particularly in North America.  Lysol saw good growth off the back of an outstanding 2020, as core consumption remained strong, and we gained further penetration in the laundry sanitiser segment.

·      Total net revenue at actual exchange rates was down 5.4%, reflecting net M&A impact of -3.8% and foreign exchange headwinds of 5.1%.

·      The two-year stacked LFL net revenue growth for 2021 vs 2019 (the summation of the year-on-year growth rates for 2021 and 2020) for the group was 17.4%.  This was driven by two-year stacked LFL net revenue growth of 27% in Hygiene, and 12% and 6% in Health and Nutrition, respectively.

·      Our in-market competitiveness remains strong. 62% of our Core Category Market Units (CMUs), excluding IFCN China, held or gained share.  In Hygiene it was 57% and in Health and Nutrition it was 61% and 72%, respectively (weighted by net revenue).

·      During the year, COVID continued to impact net revenue.  Around 70% of our portfolio, representing brands less sensitive to COVID dynamics, grew mid-single-digits.  The remaining 30% of our portfolio which includes Lysol, Dettol and our cold and flu brands (Mucinex, Strepsils and Lemsip) have been more volatile reflecting fluctuations in COVID related demand.

·      eCommerce net revenue, excluding IFCN China, grew by 17% in 2021 and now accounts for 12% of group net revenue.  The two-year stacked growth is over 85%.

·      Our Global Business Solutions ('GBS') has further developed its channel and geographic footprint through partnerships with operators such as Diversey. We have taken market share within the sectors in which we participate, although overall performance in 2021 was impacted by a slower return to travel and workplaces than originally anticipated. 

·      In Q4 we grew 3.3% on an LFL basis.  Our Health business saw strong growth of 17.5% led by growth of over 40% in our OTC portfolio, with a strong start to the 'flu season, a continued strong performance from our Intimate Wellness portfolio and stabilisation in Dettol.

Group operating margins and profit

·      Adjusted gross margin (excluding IFCN China) was 58.5%, (2020: 60.5%) a reduction of 200bps.  The reduction in gross margin was principally driven by c.11% cost inflation, partially mitigated by productivity initiatives (+250bps) and pricing and mix (+80bps).

·      Adjusted operating profit (excluding IFCN China) was £2,944m (2020: £3,216m) at an adjusted operating margin of 22.9% (2020: 24.5%) in line with our guidance of 22.7-23.2%. The reduction of -160bps was principally driven by gross margin (-200bps) partially offset by productivity efficiencies in BEI spend (60bps).

·      Adjusted operating margin (including IFCN China) was 21.7% (2020: 23.6%). As previously communicated, IFCN China experienced challenging trading throughout the nine months of ownership in 2021, as well as c.£40m of exit costs incurred just prior to the transfer of the business which diluted adjusted operating margin in 2021.

·      The IFRS operating loss was £804m (2020: £2,160m profit).  The IFRS operating loss in 2021 included a pre-tax loss of £3,353m in relation to the strategic review and disposal of IFCN China and pre-tax losses of £234m from the sale of Scholl and EnfaBebé brand in Argentina.

EPS and dividends

·      Total adjusted diluted EPS was 288.5p in 2021 (IFRS: -4.5p loss per share), 11.8% lower than 2020 due to the lower adjusted operating profit and the adverse impact of foreign exchange.

·      The 2021 proposed dividend of 174.6p remains in line with 2020 consistent with our approach of sustaining 2019 levels to rebuild dividend cover to two times. Thereafter, we will grow the dividend progressively in line with adjusted net income.

Free cash flow and net debt

·      Free cash flow was £1,258m in 2021 (2020: £3,052m).  As expected, this was lower than the prior year due to the partial unwind of significant working capital favourability experienced in 2020.  Capital investment to support our growth and margin ambitions was £441m, 3.3% of Group net revenue.

·      Net debt ended the year 2.6x Adjusted EBITDA (2020: 2.4x Adjusted EBITDA).

ESG

·      Good progress on the delivery of our 2030 Sustainability Ambitions, with continued strong third party ratings:

·      Healthier Planet: we have now achieved our 2030 target of reducing carbon by 65% in 2021 versus 2015 levels, driven primarily by the purchase of 100% renewable electricity for all our manufacturing sites. Reflecting our commitment to climate-related and nature-related financial disclosure, during the year we established partnerships with the Cambridge Centre for Risk and Nature-based Insetting at the Universities of Cambridge and Oxford. We also had significant presence at the COP26 summit in Glasgow, as official Hygiene Partner, addressing the connection between climate change and health.

·      Sustainable Products: 29.3% of net revenue, excluding Nutrition, from more sustainable products (see definition on page 32) with the slight reduction versus 2020 impacted by changes in our product mix.  We remain firmly on track to deliver on our 2030 target of 50%.

·      Fairer Society: we invested £38m in our Fight for Access Fund in 2021, with 12 global strategic partners, including WWF, Red Cross and London School of Hygiene and Tropical Medicine, reaching c.80m people across 50 countries. We also launched our partnership with Fair Rubber Association to support latex producers in Thai and Malaysian supply chains.

·      We will be hosting an ESG capital markets event on 6 April as we publish our new Sustainability Insights.

Portfolio

·      We continue to actively manage our portfolio, to reposition towards higher growth. In 2021, we repositioned approximately 9% of the portfolio (as measured by 2020 net revenue).

·      In June 2021, we completed on the sale of Scholl for an enterprise value of £275m. The sale brings greater focus to our personal care portfolio. 

·      In July 2021, we completed the acquisition of Biofreeze for $1.1bn. The acquisition has enabled us to enter the fast-growing topical pain treatment category in the US - the world's largest analgesic market. The integration is progressing well and we continue to refine plans for geographic and product expansion.

·      In September 2021, we completed the sale of our IFCN China business for an implied enterprise value of $2.2bn, completing the transaction 96 days following agreement and in November 2021, completed the sale of EnfaBebé in Argentina.  These transactions represent a major step forward in our strategy to rejuvenate sustainable growth, focussing our Nutrition business on the structurally more attractive markets of North America, Latin America and ASEAN.

·      In December 2021, we announced the proposed sale of E45 and related sub-brands for £200m.

·      In 2022, we will move our VMS business into our Health Global Business Unit (GBU). This will better align the self-care needs of consumers, whilst leveraging the capabilities and scale of our Health business.  

2022 and medium-term outlook

·      For 2022, we are targeting LFL net revenue growth of between 1-4% with mid-single digit growth in 70% of our portfolio offset by uncertainty related to COVID, primarily in Lysol.

·      We expect to exit 2022 with mid-single digit LFL net revenue growth.

·      We are targeting growth in Adjusted Operating Profit margins, from a base of 22.9%, despite significant commodity inflationary pressures.  We will apply appropriate pricing and net revenue growth management actions in 2022 to offset these pressures and will continue to deliver on our strong productivity programme.  Finite life transformation costs will phase out in 2022 and additionally, the margin of our Health business unit is expected to benefit from an improved mix due to stronger cold & flu sales.

·      Our medium-term margin target of AOP margins in the mid 20's by the mid-2020s is unchanged.

·      We expect both net revenue growth and margin expansion in 2022 to be second half weighted due to both the phasing of pricing initiatives and the strong prior year comparatives in Hygiene in Q1 2021.

Other 2022 technical guidance

·      Net finance expense is expected to be in the range of £220m-£240m.

·      The adjusted tax rate is expected be in the range of 23-24%.

·      Capital expenditure is expected to be c.4% of net revenue.

·      If exchange rates were to hold at the December 2021 closing rates for 2022, the estimated impact on 2022 Sterling net revenue and adjusted diluted EPS is flat.

Hygiene                                                                                            45% of net revenue in 2021

¹ Adjusted measures are defined on page 30

Hygiene net revenue grew 7.5% on a LFL basis to £5,911m for the full year. Volume grew by 5.1% and price/mix improved by 2.4%. Price increases taken in the latter half of 2021 were offset by a return to more normalised promotion levels, especially in North America. On a two-year stacked LFL basis, net revenue is up 27%.

Growth was broad-based across our core categories and regions, with over 57% of Core Hygiene CMUs (weighted by net revenue) growing or holding share. eCommerce net revenue grew by 28% and we continue to have better market share positions online, driven by our improved capabilities in go-to-market and digital demand creation.

Lysol continued the positive momentum, with net revenues up high-single-digits on a LFL basis in 2021 following well over 70% growth in 2020. Growth was driven by increased consumption due to the pandemic as well as strong growth in new spaces (e.g. Laundry Sanitisers) and new places. Lysol has continued to gain market share and significantly contributed to category growth, especially in Laundry Sanitisers, where we see significant further penetration growth potential. Overall, Lysol revenue was c.90% higher than 2019. 

Finish continued its growth momentum with net revenue growing by mid-single-digits in 2021. Revenue growth was particularly strong in Europe and Developing Markets driven by our focus on category building, and penetration growth with superior solutions in our premium Finish Quantum product. eCommerce significantly contributed to the brand's success. 

Air Wick net revenue grew double-digits. This was led by the US driven by strong market growth and market share gains. Air Wick's scented oils natural range together with the launch of purpose inspired marketing campaigns in partnership with the World Wildlife Fund significantly accelerated Air Wick's growth momentum. 

Vanish net revenue grew double-digits driven by reduced confinements of consumers versus the prior year and the success of our purpose led marketing campaign. Harpic grew mid-single-digits as a result of continued penetration activities in key markets. Our Pest business delivered low-single-digits growth.

Adjusted operating profit for Hygiene at £1,401m was down 1.3% on a constant FX basis and 6.9% on an actual basis. Our industry leading adjusted operating margin was 23.7%. Higher raw material and transportation costs were partially mitigated by record productivity savings, pricing and volume leverage leading to a -220bps decline in adjusted operating margin versus the prior year.

Fourth Quarter Performance

Net revenue declined by 6.1% on a LFL basis in the fourth quarter, reflecting volume decline of 7.6% and price/mix improvements of 1.5%. Lysol demand was significantly above 2019, however, declined double-digits versus 2020 lapping strong comparators. Lysol continued to gain market share. Finish increased market share in the quarter and grew high-single-digits despite very strong prior year comparatives. Air Wick saw double-digit growth and Vanish grew high-single-digits driven by market growth and market share gains.

Health                                                                                               35% of net revenue in 2021

¹ Adjusted measures are defined on page 30

Health net revenue of £4,646m was broadly flat in 2021 versus 2020 on a LFL basis. Volume declined 2.1%, reflecting primarily the reduction in Dettol volumes. Price / mix improved by 2.0%.

On a two-year stacked LFL basis, net revenue is up 12%, reflecting the higher consumption rates for some of our brands, the broadening of our brands to new places and spaces, and the actions we have taken on portfolio management to create a faster growth business.

The disposal of Scholl and acquisition of Biofreeze, combined, contributed 40bps decline to reported Health net revenue growth for the full year.

In 2021 Health delivered strong market share gains, with 61% of Core Health CMUs (weighted by net revenue) growing or holding share.

Dettol net revenue declined low double-digits in the year following exceptional growth in 2020. The brand has continued to stabilise with net revenue up over 40% compared to 2019, for both the year as a whole and in the fourth quarter. We delivered a number of successful product launches during the year, including 'Dettol Tru Clean' - our first plant-based disinfectant, quickly establishing itself as one of the larger eco brands in the UK.  We have a strong pipeline of innovations launching in 2022 and are targeting Dettol to continue its strong, sustainable growth trajectory.

Intimate Wellness delivered strong mid-teens growth in both 2021 and on a two-year stack, led by our flagship brands of Durex and KY.  Growth is underpinned by a renewed focus on execution fundamentals, innovation, investment behind omnichannel growth across eCommerce and new "impulse access models".  In particular, we have seen strong growth in China from our recent and successful polyurethane Durex condom launch. KY has driven renewed momentum from its digital-first, culturally connected advertising and media strategy, which has sparked new points of trial and captured incremental households in the US during the year. Growth in a number of our developing markets has also been strong, with increased distribution and improved display execution, to win in impulse points.  As a result, Durex has now become the number 2 condom brand in India.  We see significant growth opportunities within our Intimate Wellness business as we pivot from a brand focus to a category centric portfolio of global lifestyle brands.

OTC net revenue grew by low-single-digits in 2021 but declined by low-single-digits on a two-year stack basis, driven predominantly by very low incidences of cold & flu in 2020 and the spring of 2021.  Within OTC our less seasonally impacted brand of Gaviscon delivered strong growth in both 2020 and 2021 driven by market share gains, and increased distribution into new places such as India and parts of Latin America.  Our cold and flu relief brands, including Mucinex, Strepsils and Lemsip, were adversely impacted by extremely low incidences of cold and flu, and resultant high levels of retailer stock in the first half of the year, offset by strong start to the season in the second half. Importantly we have made good progress in our growth pillars during 2021; we entered into an adjacent category (new space) with the successful launch of Mucinex InstaSoothe, sore throat relief, in the second half of the year.  We also launched into new places with the rollout of Nuromol - a unique and exclusive formulation of Nurofen and Paracetamol - into Brazil - a top 5 market globally for analgesics.  And we made a strategically important entry into the world's large analgesic market with the acquisition of Biofreeze in the US.  Biofreeze a fast growing, efficacious, topical analgesic brand, will benefit from Reckitt's strong distribution platform in the US, and its global category expertise and innovation capability. Since the acquisition Biofreeze has delivered double-digit LFL growth.

Our personal care portfolio, following the sale of Scholl in H1 2021, has grown mid-single-digits led by our Veet brand.  Growth was driven by our focus on new channels with high-single-digit growth in our eCommerce platforms, the expansion of Veet for Men, and our entry into new spaces such as Veet Minima / Pure. 

Adjusted operating profit for Health at £1,187m was down 5.5% on a constant FX basis. Adjusted operating margin was 25.5%, a reduction of 180bps year-on-year.  The decline is due to the impact of a weak cold and flu season, further investment behind capabilities and a deteriorating input cost environment. This was partially mitigated by our productivity programme and some pricing taken in the second half of 2021. 

Fourth Quarter Performance

Net revenue grew by 17.5% on a LFL basis in Q4 with 13.0% growth in volume, driven in particular by our strong growth in OTC and Intimate Wellness and a 4.5% improvement in price / mix.  A strong start to the cold & flu season against a weak comparative, combined with continued strong performance in Gaviscon and overall share gains, has delivered over 40% growth in our OTC portfolio in the quarter. Dettol net revenue was stable in the quarter.

Nutrition                                                                                           20% of net revenue in 2021

¹ Adjusted measures are defined on page 30

Nutrition net revenue grew by 0.6% on a LFL basis in the full year at £2,677m, and grew 6% on a two-year stack.  Within this, our IFCN business grew consistently over the past two years at low-single digit growth, with our VMS business delivering very strong growth in 2020, offset by a weaker 2021 as it lapped the very strong comparatives.  For 2021 volume declined 4.9% and we delivered price / mix improvements of 5.5% as pricing was taken in a number of markets.  Actual net revenue declined 18.6% primarily as a result of the performance and disposal of IFCN China which completed in September.

Market share performance was strong, with 72% of our Core Nutrition CMUs (weighted by net revenue) holding or gaining market share for the year, excluding IFCN China.

IFCN net revenue grew 3% on a LFL basis. The US business, which represents around half of IFCN net revenue, grew mid-single-digits. Growth in our speciality brands was strong, we gained share in the important non-WIC portion of the market, and further expanded our adult nutrition offering with the launch of Provital in ASEAN and Sustagen in the developing markets. Latin America grew low single-digits, whilst ASEAN was down slightly, with better momentum in the second half of the year in part driven by improvements in competitiveness in key ASEAN markets.  

Net revenue in our Vitamins, Minerals and Supplements business declined high-single-digits. This was primarily the result of a reduction in demand for Airborne following exceptional growth in 2020, plus increased competitive challenges.  Despite these challenges, net revenue in 2021 significantly exceeded 2019 levels. Move Free grew strongly in both the US and China, and Neuriva, has become the leader in the US for household penetration in the brain category, with net revenue doubling in 2021.

Adjusted operating profit for Nutrition at £289m was 31.2% lower on a constant FX basis and 37.4% lower on an actual  basis. Adjusted operating margin was 10.8%, down 330bps year-on-year reflecting principally the negative leverage related to the significant decline in IFCN China net revenue. Excluding IFCN China, adjusted operating profit for Nutrition was £356m (15.5% margin).  

IFCN China

The disposal of IFCN China completed on 9 September 2021. The business contributed net revenue of £383m and an adjusted operating loss of £67m in 2021 to the date of sale, with a challenging and competitive trading environment throughout the year, and c.£40m of exit costs incurred immediately prior to the transfer of the business.

Fourth Quarter Performance

Nutrition net revenue grew by 1.6% on a LFL basis in the quarter with continued growth in IFCN offset by a single digit decline in VMS.  Consumer demand across the US IFCN category was particularly strong relative to births and historical consumption patterns.

Performance by Geography

¹ Adjusted measures are defined on page 30

North America LFL net revenue grew by +2.9% for the full year with strong growth in Air Wick, Lysol and IFCN offset by declines in Mucinex.

In Europe/ANZ LFL net revenue grew by +1.5% for the full year with strong growth in the Nordics, Poland, Russia and Turkey, offset by declines in Germany, Benelux, and UK.

Developing markets LFL net revenue growth was +6.0% for the full year with broad-based growth across our regions, in particular India and Middle East.