H1 Results 2015

 

27 July 2015     FULL YEAR TARGETS INCREASED STRONG HY PERFORMANCE

 

Results at a glance (unaudited)	Q2 £m	% change actual exchange*	% change constant exchange*	HY  £m	% change actual exchange*	% change constant exchange*
Net revenue	2,140	+1	+4	4,356	+1	+4
- Like-for-like growth**			+5			+5
Operating profit - reported				939	+10	+12
Operating profit - adjusted***				953	+9	+11
Net income - reported				709	+8	+10
Net income - adjusted***				720	+7	+9
EPS (diluted) - reported				97.5p	+8
EPS (diluted) - adjusted***				99.0p	+7

*     Prior year reported numbers have been restated to exclude Indivior (RB Pharmaceuticals).  Refer p2 for further details 

**    Like-for-like ("LFL") growth excludes the impact of acquisitions, disposals and discontinued operations. It is measured on

       a constant exchange basis.

***  Adjusted results exclude exceptional items of £14m (HY 2014: £22m) (refer note 5). 

 

Highlights:  Half Year (HY) unless otherwise stated

·     LFL net revenue growth +5% (Q2: +5%) broad-based by geography, consumer health and hygiene led, and aided by a favourable flu season.  After the impact of FX and net M&A, total growth was +1%.

·     Gross margin +90bps to 57.6%, from positive mix, input cost tailwinds and Project Fuel.

·     Continued strong investment in brand equity (BEI) +30bps to 14.4% of net revenue.

·     Adjusted operating margin expansion of +160bps to 21.9%, driven by GM expansion and accelerated delivery of Supercharge initiatives.

·     Adjusted net income +7% (+9% constant); adjusted diluted EPS of 99.0p (+7%).

·     Reported net income +8% (+10% constant); reported diluted EPS of 97.5p (+8%).

·     Strong free cash flow generation of £756m, a conversion rate of >100% of net income.

·     Increased full year net revenue and adjusted operating margin targets.

·     In line with our 50% payout ratio policy, the Board declares an interim dividend of 50.3p per share (2014: 60p - prior to Indivior demerger).

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

"I am pleased with our first half results, they once again confirm that our strategic focus on consumer health and hygiene is delivering sustainable growth and outperformance.  We continue to invest behind our innovations such as Scholl Express Pedi and Durex Real Feel in both developed and developing markets leading to broad-based growth across both areas.

 

Given our strong HY performance, and accelerated delivery of Project Supercharge savings, we now expect to exceed the targets we set at the beginning of the year.  We are now targeting full year LFL net revenue growth of +4-5% and H2 moderate to "nice" adjusted operating margin expansion, following the +160bps achieved in H1."   

 

 

LFL definition

Where appropriate, the term "like-for-like" (LFL) describes the performance of the business on a comparable basis, excluding the impact of acquisitions, disposals and discontinued operations. It is measured on a constant exchange basis.

 

Demerger of Indivior (RB Pharmaceuticals)

Indivior was demerged from the RB group on 23 December 2014.  Accordingly it has been accounted for as a discontinued operation and the 2014 RB Group results restated to exclude the impact of Indivior.  A reconciliation of net income and EPS is as follows:

 

	HY 2015	HY 2014	% change actual exchange
Net income from continuing operations	709	657	+8%
Net income from discontinued operations	-	155
Net income for the period	709	812	-13%
Diluted EPS from continuing operations	97.5p	89.9p	+8%
Diluted EPS from discontinued operations	-	21.2p
Diluted EPS for the period	97.5p	111.1p	-12%

 

Adjusted results and exceptional items

Adjusted results exclude exceptional items.  A breakdown of exceptional items is detailed in note 5 and relates to Group-led restructuring, acquisition and integration costs. The adjusted results are not IFRS measures.

 

Free cashflow

Free cashflow is defined as net cash generated from operations less net capital expenditure.

 

Project Supercharge

Project Supercharge was announced in February 2015 (refer to details on p12 of the 11 February 2015 announcement for a detailed description).  The project focuses on:

-     creating a simpler, more agile organisation

-     reducing cost and driving efficiencies

 

Project Fuel

Project Fuel is our ongoing cost optimization programme within cost of goods sold (COGS). 

 

Detailed Operating Review: Total Group

Half year ("HY") 2015

Total HY net revenue was £4,356m, a LFL increase of +5% (+4% total at constant rates due to the impact of net M&A).  ENA grew at +4% on a LFL basis driven by broad-based growth across markets and consumer health brands, the successful launch of our recent Amopé Velvet Express Pedi in the US, and improved market growth from a favourable flu season.  DvM grew at +7% on a LFL basis against a backdrop of mixed market conditions.  We have seen improved consumer sentiment in India, however LATAM and particularly Brazil remains tough.  From a category perspective, growth has been driven by an excellent +13% LFL performance in consumer health with growth across many of our brands, a successful launch of our new Footcare brand, Amopé in the US, continued success of the Scholl express pedi range, Durex and Nurofen.  Our VMS brands had a mixed performance with growth from Airborne, Move Free and Digestive Advantage whilst MegaRed remains challenging. Hygiene grew at +3% LFL led by Dettol and Harpic in our emerging markets, and Home grew +1% LFL with an improved Q2.

The K-Y acquisition has been successfully integrated into our operations with the exception of the UK, where regulatory approval is pending, and the de-minimus New Zealand business where we were unable to acquire the brand due to anti-trust reasons.  We continue to work on plans to maximise shareholder value for the Medcom hospital glove business.

Gross margin expansion was +90bps to 57.6%.  This was due to a combination of beneficial mix driven by strong growth in consumer health brands, a favourable input cost environment, and savings from cost optimisation programmes ("Project Fuel"), offset by adverse currency movements.

We are committed to investing in the long-term growth of our brands and in HY 2015 we invested 14.4% of our net revenue in brand equity investment (BEI) which is +30bps versus the prior year (actual rates) and an absolute increase of £43m (constant). Underlying investment in BEI was even higher as we continue to benefit from media savings, together with Supercharge savings in non-working media, which will accelerate during the course of the year.

The organisation has fully embraced the Project Supercharge mindset, and we have delivered savings earlier than in-going assumptions.  In addition, we now expect to achieve the upper end of the estimated £100m-£150m annualised savings by the end of the programme.

 

Operating profit as reported was £939m, +10% versus HY 2014 (+12% constant). Exceptional charges of £14m for HY relate to previously announced restructuring and acquisitions.  Spend on these programmes remains in line with guidance.  On an adjusted basis, operating profit was up +9% (+11% constant) to £953m. The adjusted operating margin increased +160bps to 21.9%, driven by strong gross margin expansion and savings from the implementation of Project Supercharge.

Net finance expense was £18m (HY 2014: £18m).  The tax rate was 23% both before and after adjusting for exceptional items. In the prior period, the tax rate was 22% and 21% on an adjusted basis.

Net income as reported was £709m, an increase of +8% versus HY 2014 (+10% constant). On an adjusted basis, net income grew +7% at actual exchange rates, and rose +9% on a constant basis.  Diluted earnings per share of 97.5 pence after adjusting for the demerger of Indivior was +8% higher on a reported basis; on an adjusted basis, +7% to 99.0 pence. 

Second quarter ("Q2") 2015

Total Q2 net revenue was £2,140m, a LFL increase of +5% (+4% total at constant rates). ENA had a strong quarter.  Growth was broad-based across Western Europe, US and Russia.  Russia benefitted from pricing, which was offset by some reductions in volume.  The US had strong sales from the newly launched Amopé brand. DvM saw an improving performance with +8% LFL growth.  India continued to see improving market conditions, Brazil continued to be weak, but had a better performance versus Q1, driven by a strong pest season. Health continued its excellent performance with Scholl delivering strong growth in European markets and Amopé making a strong start in the US.  The other Powerbrands also performed well behind innovations, consumer education programmes and in-store activation.  Hygiene grew +3% on an LFL basis with Finish, Dettol, and Mortein the key growth drivers.  Within Home, Air Wick improved following the rollout of our new Life Scents innovation.

 

 

Summary: % net revenue growth by Operating Segment

	Q2				H1
	LFL	Net M&A*	FX	Reported	LFL	Net M&A*	FX	Reported
North America	+3%	-	+9%	+12%	+3%	+1%	+9%	+13%
Rest of ENA	+4%	-1%	-11%	-8%	+4%	-2%	-11%	-8%
ENA	+4%	-1%	-5%	-2%	+4%	-1%	-5%	-2%
DvM	+8%	-1%	-2%	+6%	+7%	-	-1%	+5%
Food	+1%	-	+6%	+8%	+3%	-	+8%	+11%
Group	+5%	-1%	-4%	+1%	+5%	-1%	-3%	+1%

* Reflects the impact of acquisitions and the disposal / discontinuance of minor businesses.

Note:  due to rounding, this table will not always cast

 

Analysis of net revenue and adjusted operating profit by operating segment, and of net revenue by category are set out below.  The Executive Committee of the Group assesses the performance of the operating segments based on net revenue and adjusted operating profit.  This measurement basis excludes the effect of exceptional items. 

 

 

Review by Operating Segment

 

Quarter ended 30 June					Half Year ended 30 June
2015	2014	% change			2015	2014	% change
£m	£m	exch. rates			£m	£m	exch. rates
		actual	const.				actual	const.
				Total Net revenue
461	412	+12	+3	North America	978	868	+13	+4
900	977	-8	+3	Rest of ENA	1,813	1,978	-8	+3
1,361 693	1,389 656	-2 +6	+3 +8	ENA DvM	2,791 1,397	2,846 1,325	-2 +5	+3 +6
86	80	+8	+1	Food	168	152	+11	+3
2,140	2,125	+1	+4	Total	4,356	4,323	+1	+4

 

				Operating profit
				ENA	676	642	+5	+9
				DvM	234	202	+16	+13
				Food	43	34	+26	+18
				Operating profit - adjusted*	953	878	+9	+11
				Exceptional items	(14)	(22)
				Total Operating profit	939	856	+10	+12

 

				Operating margin - adjusted*	%	%
				ENA	24.2	22.6	+160bp
				DvM	16.8	15.2	+160bp
				Food	25.6	22.4	+320bp
				Total	21.9	20.3	+160bp

* Adjusted to exclude the impact of exceptional items.

 

The Business Review below is given at constant exchange rates.

ENA	64% of net revenue

 

HY 2015 total net revenue was £2,791m, with LFL growth of +4%.  All European regions are in growth with many of our larger markets (UK, France, Germany and Spain) delivering strong performances.  Russia also had a strong first half but with trends slowing in the second quarter as volume declines offset price increases.  The outlook for Russia remains uncertain given the current market and currency issues.

North America had a good HY with growth driven by the launch of our successful Velvet Express Pedi under the new brand name, Amopé.  Airborne and Move Free performed well, gaining further penetration, and Air Wick showed improving trends following the launch of our new Life Scents range.  Growth was partially offset by lapping the launch of Mucinex allergy last year and competitive market conditions for Finish.  

For HY, adjusted operating profit increased +9% (constant) to £676m; the adjusted operating margin increased +160bps to 24.2%, due to good gross margin expansion and Project Supercharge initiatives.

Q2 total net revenue was £1,361m, with LFL growth of +4% underpinned by broad-based growth across all regions. 

 

 

DvM	32% of net revenue

HY 2015 total net revenue was £1,397m, with LFL growth of +7% (total, constant +6%).  Growth came from all regions with India, Middle East and Turkey the highest contributors.  China, South Africa and Korea / Japan also performed well, offset by weakness in Brazil, Thailand and Indonesia.

For HY, adjusted operating profit of £234m was an increase of +13% at constant rates; the adjusted operating margin was +160bps higher at 16.8%. This was due to gross margin expansion, combined with Supercharge initiatives.

Q2 total net revenue was £693m, with LFL growth of +8% (total, constant +8%).  A modest improvement in India and a strong pest season in Brazil drove the improved performance versus Q1.

Food	4% of net revenue

 

HY 2015 total net revenue was £168m, a 3% increase versus prior year at constant exchange rates. In North America growth was led by French's mustard and Frank's RedHot and increased distribution drove growth outside of the USA. Operating margins improved by +320bps to 25.6%.

Q2 growth was impacted by the timing of Easter.

 

 

 

Summary: % net revenue growth by Category

	Q2				H1
	LFL	Net M&A*	FX	Reported	LFL	Net M&A*	FX	Reported
Health	+13%	+1%	-5%	+9%	+13%	+2%	-5%	+10%
Hygiene	+3%	-	-3%	-	+3%	-	-2%	-
Home	+2%	-	-4%	-2%	+1%	-	-5%	-4%
Portfolio	-6%	-7%	-1%	-14%	-5%	-9%	-2%	-16%
Group	+5%	-1%	-4%	+1%	+5%	-1%	-3%	+1%

* Reflects the impact of acquisitions and the disposal / discontinuance of minor businesses.

Note:  due to rounding, this table will not always cast.

 

Quarter ended 30 June					Half Year ended 30 June
2015	2014	% change			2015	2014	% change
£m	£m	exch. rates			£m	£m	exch. rates
		actual	const.				Actual	const.
				Net revenue by category
661	608	+9	+14	Health	1,370	1,247	+10	+15
891	893	-	+3	Hygiene	1,834	1,825	-	+3
419	427	-2	+2	Home	833	871	-4	-
169	197	-14	-13	Portfolio Brands	319	380	-16	-14
2,140	2,125	+1	+4	Total	4,356	4,323	+1	+4

* Adjusted to exclude the impact of exceptional items.

 

The Category Review below is given at constant exchange rates.

Health

32% of net revenue

 

HY 2015 total net revenue was £1,370m, with LFL growth +13% (total +15%).  We have delivered an excellent HY, with growth led by our Powerbrands.   

The Scholl / Amopé franchise has delivered an outstanding performance throughout our larger ENA markets and a number of DvM markets.  Growth was driven by a combination of geographic rollout of our successful Velvet Express Pedi innovation - our new Express Pedi with diamond crystals and GelActive insoles, plus the launch of the Amopé brand in the US. Durex grew with the launch of Durex Real Feel, our thinnest ever non-latex condom.  Our sexual wellbeing category as a whole has benefitted from the acquisition of K-Y, which has been recorded in our LFL results from May 2015. Gaviscon, Nurofen and Strepsils also had good growth, behind consumer education programmes, and aided by a favourable 'flu season'.  Growth in Mucinex cough, cold and sinus offerings were offset by the launch of Mucinex allergy in 2014.  Our VMS brands had a mixed performance with growth from Airborne, Move Free and Digestive Advantage offset by MegaRed which is lapping the European rollout last year.

Q2 total net revenue was £661m, with LFL growth +13% - another outstanding quarter of growth driven by Scholl / Amopé, Durex, Gaviscon and Strepsils.

 

Hygiene

42% of net revenue

 

HY 2015 total net revenue was £1,834m, with LFL growth of +3%.  Dettol continues to be a key driver with good growth across both developed and emerging markets behind both penetration building programmes and innovations.  Mortein also had a strong HY, with early success from our latest innovation - the Mortein Activ Card.  Harpic and Lysol were also contributors to growth following a strong start to the year.  

 

Q2 total net revenue was £891m with LFL growth +3%. Growth was broad based across the Powerbrands, with an improved performance from Finish behind strong in-market activation of our Shine and Protect innovation. 

 

Home	19% of net revenue

 

HY 2015 total net revenue was £833m.  LFL growth was +1%.  Air Wick, after a soft start, had a strong performance in Q2 as the full launch and activation of our new Life Scents innovation has been well received by consumers.  Our recent Air Wick "Pure" premium aerosol innovation has also done well in a number of Western European markets.  Vanish had a strong start to the year driven by the success of our Vanish Gold innovation in Europe, and the Vanish Superbar in Emerging markets.    

Q2 total net revenue was £419m. LFL growth was +2%.  Conditions continue to be challenging, albeit with a modest improvement in Air Wick, driven by our recent Life Scents and "Pure" innovations.   

 

Portfolio (including Food)

7% of net revenue

HY 2015 total net revenue was £319m, with LFL performance of -5%.  Laundry detergents and fabric softeners in Southern Europe were weak, as competitive and promotional activities in the market continue.    

Q2 total net revenue was £169m, with LFL performance of -6%.

 

The Group has disclosed a selection of new product initiatives for the second half of 2015:

In Health:

 

·     Launch of Mucinex Liquid Gelcap range:  Fast-dissolving liquid gelcaps with the mucous-busting power of Mucinex & all cold & flu ingredients at max strength.

 

·     Launch of Scholl Velvet Smooth electronic nail care system.  An effortless way to shinier, healthier looking nails.

 

·     Launch of Strefen Direct Spray.  A new and unique clinically proven formulation to target the pain of your sore throat fast, and provide relief for up to 6 hours.

 

·     Rollout of Airborne in several European markets. A powerful and unique blend of Vitamin C, minerals and herbs for immunity support. 

 

 

In Hygiene:

 

·     Launch of Dettol Squeezy Hand Wash.  Superior protection against germs, at the price of bar soap.

 

·     Launch of Lysol Click gel.  The most hygienic way for a continuously clean and fresh toilet.

 

 

In Home:

 

·     Launch of Air Wick Life Scents Room Mist.  A premium aerosol providing  multi-layered, true to life fragrances, for an authentic fragrance experience, as in nature.

 

·     Launch of Air Wick Wax Melts.  A blend of three continuously changing fragrances in a wax which melts without a flame.

 

 

 

 

 

 

 

 

Basis of preparation.  The unaudited financial information is prepared in accordance with IFRSs as adopted by the European Union and IFRSs as issued by the International Accounting Standards Board, and with the accounting policies to be applied in the financial statements for the year ending 31 December 2015.  These are not materially different from those set out in the Group's 2014 Annual Report and Accounts, unless separately disclosed.

Constant exchange.  Constant exchange rate adjusts the actual consolidated results such that the foreign currency conversion applied is made using the same exchange rate as was applied in the prior period.

Net finance expense.  Net finance expense is £18m (2014: £18m).

Tax.  The overall effective tax rate is 23% (2014: 22%). The adjusted tax rate is 23% (2014: 21%).

Net working capital (inventories, trade and other receivables and trade and other payables) of minus £1,033m was a £202m improvement versus the 31 December 2014 level. 

Cash flow.  Cash generated from operations was £1,011m (2014: £851m), and free cash flow (net cash generated from operating activities less net capital expenditure) was £756m (2014: £743m).  Net interest paid was £3m higher at £17m and tax payments increased by £10m to £202m.  Net capital expenditure (including intangibles) was £30m lower than the prior period at £36m.  During the period the Group undertook share repurchases of £452m. 

Net debt at the end of the half year was £1,793m (31 December 2014: £1,543m), an increase of £250m.  This reflected the payment of the final 2014 dividend of £566m, and share repurchases of £452m, offset by net cash generated from operating activities of £792m.  The Group regularly reviews its banking arrangements and has adequate facilities available.

Exceptional items.  In HY 2015 the exceptional pre-tax charge incurred was £14m (HY 2014: £22m), relating to acquisition and associated integration and restructuring costs.

Balance sheet.  At 30 June 2015, the Group had shareholders' funds of £6,243m (31 December 2014: £6,834m), a decrease of 9%.  Net debt was £1,793m (31 December 2014: £1,543m) and total capital employed in the business was £8,036m (31 December 2014: £8,377m).

This finances non-current assets of £11,996m (31 December 2014: £12,336m), of which £723m (31 December 2014: £757m) is property, plant and equipment, the remainder being goodwill, other intangible assets, deferred tax and other receivables.  The Group has net working capital of minus £1,033m (31 December 2014: minus £831m), current provisions of £276m (31 December 2014: £317m) and long-term liabilities other than borrowings of £2,503m (31 December 2014: £2,737m).

Dividends.  The Board of Directors declares an interim dividend of 50.3p (2014: 60.0p) in line with its stated policy to pay out 50% of adjusted net income. The absolute reduction versus the prior year is due to the demerger of Indivior (formerly called RB Pharmaceuticals).

The ex-dividend date will be 13 August 2015 and the dividend will be paid on 25 September 2015 to shareholders on the register at the record date of 14 August 2015.  The last date for election for the share alternative to the dividend is 4 September 2015.

Legal provisions. The Group is involved in litigation, disputes, and investigations in multiple jurisdictions around the world. It has made provisions for such investigations, where appropriate. Where it is too early to determine the likely outcome of these matters, or to make a reliable estimate, the Directors have made no provision for such potential liabilities.

 

The Group from time to time is involved in discussions in relation to ongoing tax matters in a number of jurisdictions around the world. Where appropriate, the Directors make provisions based on their assessment of each case.

 

As a matter of policy and practice, the Group co-operates with all government investigations, including regulatory investigations involving competition law.  The Group maintains and continues to improve a robust compliance training programme and ensures that all executive managers sign an annual disclosure and reporting document certifying compliance with the Group's Code of Conduct.

 

Contingent liabilities.  The Group is involved in a number of investigations by government authorities and has made provisions for such investigations, where appropriate. Where it is too early to determine the likely outcome of these matters, or to make a reliable estimate, the Directors have made no provision for such potential liabilities.

 

 

 

We have made a strong start to the year and are ahead of our ongoing expectations at this half year juncture.  Additionally we are now delivering an accelerated implementation of cost efficiency initiatives under Project Supercharge.  This is having the effect of bringing forward the benefits from this three year programme.

 

Given this strong HY performance, and accelerated phasing of Project Supercharge savings, we now expect to exceed our initial targets and therefore amend them as follows:   

 

Net Revenue

Full year LFL revenue growth¹ of +4-5%.

 

Operating margin

The high quality mix of our growth, combined with input tailwinds and the early impact of Project Supercharge have enabled us to deliver adjusted operating margin expansion in H1 of +160bps.  We expect these drivers to remain relevant for the rest of the year, although we will be lapping some non-sustainable cost savings undertaken during the second half of last year (of approximately 100bps in H2 2014). 

 

Given the above factors we are now setting an H2 target of moderate to "nice" adjusted operating margin expansion².

 

¹ At constant rates, excluding the impact of acquisitions and disposals.

² Adjusted to exclude the impact of exceptional items.

 

 

Principal Risks and Uncertainties

The Directors consider that the principal risks and uncertainties which could have a material impact on the Group's performance in the remaining six months of 2015 are the same as described on pages 24 to 27 and pages 126 to 132 of the Annual Report and Financial Statements for the year ended 31 December 2014.  These include:

·     Risks that non-compliance with regulations (e.g.; licences, manufacturing, products and laws) results in significant financial losses arising from regulator-enforced factory closures, product recalls, delayed launches, penalties etc.

·     Risk that targets cannot be delivered due to technology failures or a lack of growth-enabling systems and infrastructure capabilities, leading to business disruption.

·     Risk that our business continuity plans, including monosourcing (materials and products) are inadequate and we face interruptions to our supply chain and disruptions in our production facilities, which could materially adversely affect our results of operations.

·     Risk that we are not fully compliant with UK and local laws including the UK Bribery Act, Competition laws and Data and Privacy Protection laws, resulting in damage to RB's reputation and significant potential fines.

·     Risk of significant unprovisioned cash outflows as a result of tax authority challenge to filed positions in key territories.

·     Risk that RB cannot implement its strategies and meet objectives as a result of key management leaving the business who cannot be readily replaced by equally experienced / qualified candidates.

·     Risk of significant reputational impact as a result of systemic product quality issues resulting in undermining of consumer confidence in our brands, particularly in the growing Health Care portfolio.

·     Risk of upscheduling of active ingredients in Health Care to behind the counter or "Rx" status.

·     Risk of material impact on Group growth and profit of consumer-led slowdown in key developing markets, exacerbated by increasing currency volatility.

·     An absolute worst case scenario with sufficient potential impact to risk the future of RB as a strong and independent business operating in its chosen markets. 

The Group's Annual Report and Financial Statements for the year ended 31 December 2014 is available on the Group's website at www.rb.com.

 

The Group at a Glance (Unaudited)

                  

Quarter ended 30 June			Half year ended 30 June
2015	2014**		2015	2014**
£m	£m		£m	£m
2,140	2,125	Net revenue - total	4,356	4,323
+5%	+4%	Net revenue growth - like-for-like	+5%	+4%
+4%	+4%	Net revenue growth - constant	+4%	+4%
+1%	-7%	Net revenue growth - total	+1%	-6%
		Gross margin	57.6%	56.7%
		EBITDA - adjusted*	1,038	957
		EBITDA margin - adjusted*	23.8%	22.1%
		EBIT	939	856
		EBIT margin	21.6%	19.8%
		EBIT - adjusted*	953	878
		EBIT margin - adjusted*	21.9%	20.3%
		Profit before tax	921	838
		Net income	709	657
		Net income - adjusted*	720	674
		EPS, basic, as reported	99.0p	91.2p
		EPS, adjusted and diluted*	99.0p	92.2p

 * Adjusted to exclude the impact of exceptional items.

** Restated to reflect the demerger of Indivior

 

For further information, please contact:

Reckitt Benckiser Richard Joyce Director, Investor Relations Patty O'Hayer Director, External Relations and Government Affairs	+44 (0)1753 217800
Brunswick (Financial PR) David Litterick	+44 (0)20 7404 5959

Disclaimers

 

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.  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.