Final Results
Reckitt Benckiser PLC
20 February 2002
20th February 2002
Record Results in 2001
2002 Targets Sustained Growth
Results at a Glance Q4 % ch Full Year % ch
Net Revenues £900m +5 £3,439m +7
Operating Profit £177m +20 £525m +16
Net Income normalized £123m +27 £340m +24
Net Cash Flow from ordinary operations £416m +9
• Net revenues grew by 5% (6% at constant exchange) to £900m in Q4, and by
7% (6% constant) to £3,439m in full year (FY). For continuing operations
(excluding acquisitions and disposals) net revenue growth was 4% (5%
constant) in Q4 and 7% (6% constant) in FY.
• Operating profit increased by 20% to £177m in Q4 and by 16% to £525m in
FY. Q4 operating margin improved 250 basis points (bps) to 19.7% behind a
160 bps gross margin improvement. FY operating margins improved 120 bps to
15.3% behind a 80 bps gross margin improvement.
• Normalized net income grew by 27% in Q4 to £123m and by 24% in FY to
£340m. Including gains on disposals, FY net income grew 13% to £356m.
• Strong cash generation saw net cash flow from ordinary operations
increasing by £34m to £416m aided by a £120m reduction in net working
capital. This resulted in a £128m reduction in net borrowings despite the
£132m cash cost of acquisitions.
Commenting on these results, Bart Becht, Chief Executive Officer, said
'2001 was a very good year for Reckitt Benckiser. We grew net revenues to record
levels and gained market share in key product categories behind a substantially
higher level of product innovation. This top line growth was leveraged into
record operating profits and normalized net income, exceeding the revised
targets for the year. Cash generation was also very good as net working capital
was cut further and profit improved.
'As in prior years, our 2002 target is to grow faster than the industry, by
driving our high growth categories with more innovation and by further
strengthening our global brand positions. We are targeting for 4% to 6% net
revenue growth at constant exchange. We believe we can leverage this net revenue
increase into net income growth of 12% to 15% at constant exchange as we see
further opportunities to manage costs down, expand margins and optimize cash
generation. Achieving these targets will further demonstrate that Reckitt
Benckiser can deliver consistent organic growth.'
Basis of Comparatives
For clarity in evaluating the underlying performance of the business, the
following terminology is used:
• Continuing Operations. Excludes net revenues and operating profit relating
to businesses acquired in 2001 or sold during the course of 2000 and 2001.
These items are individually disclosed in the profit and loss account for
both Quarter 4 and full year;
• Normalized. This excludes non-operating items. 2001 profit on disposal of
businesses was £24m. In FY 2000 the net profit on disposal was £56m;
• Constant Exchange. Movements of exchange rates relative to sterling affect
actual results as reported. The constant exchange rate basis adjusts
comparisons to exclude such movements and shows the underlying growth.
The financial schedules attached to the release contain full details of the
results as reported and as adjusted for these factors.
Detailed Operating Review
Fourth Quarter 2001
Net revenues in Q4 grew by 5% (6% at constant exchange) to £900m (£860m in
2000). Net revenues from continuing operations rose 4% (5% constant) to £885m
(£849m).
Operating profit for Q4 grew 20% (18% constant) to £177m (£148m). Gross margin
in the quarter rose by 160 bps to 51.3% (49.7%). Operating margins increased by
250 bps to 19.7% (17.2%).
Net income was £116m (£109m). Normalized net income grew 27% to £123m (£97m).
Full Year: 12 months to December 2001
Net revenues grew by 7% (6% constant) to £3,439m (£3,202m). Net revenues from
continuing operations grew by 7% (6% constant) to £3,357m (£3,131m).
Operating profit increased 16% (14% constant) to £525m (£451m). Gross margins
rose 80 bps to 49.6% (48.8%). Further investment in marketing, with media
investment over 10% higher, offset by tight controls on fixed costs resulted in
operating margins increasing by 120 bps to 15.3% (14.1%).
Net income was £356m (£314m). Normalized net income grew 24% (22% constant) to
£340m (£275m). Net interest expense of £51m (£60m) was reduced due to strong
cash inflow over the year. The overall tax rate for the period was 28.3%
(29.5%).
Category Review at constant exchange rates
Fabric Care. FY net revenues grew 6% to £875m. Calgon grew strongly in Eastern
Europe and there were early but encouraging results from the launch of Calgon
Gel across Western Europe. Fabric treatment benefited from good market share
performance in Western Europe, North America and Australia New Zealand. Laundry
detergent grew strongly in Western Europe offsetting the significant impact of
deteriorating price conditions in China.
Q4 net revenues grew 9% to £224m due to strong performance by Fabric Treatment,
particularly in Western Europe and North America, and by Calgon in Eastern
Europe.
Surface Care. FY net revenues grew 5% to £807m. Lysol disinfectant cleaner
consolidated its share gains in both spray and wipes segments in North America.
The roll-out of surface care wipes into entirely new markets is working well
with share gains in furniture and glass cleaners. Harpic lavatory care benefited
from a number of initiatives, including an in-bowl gel, Powerfoam and tablets.
Q4 net revenues grew 4% to £201m with good growth in lavatory care in Western
Europe and Australia and Lysol in North America.
Dishwashing. FY net revenues grew 7% to £449m. The launch of Calgonit 3-in-1
across Western Europe continues to be an outstanding success, with strong net
revenue growth and share gains across the region. In North America, the new
Electrasol 2-in-1 showed good results. The category also showed good growth in
Asia Pacific and Rest of World.
Q4 net revenues grew 7% to £123m with the major growth continuing to be in
Western Europe and Rest of World.
Home Care. FY net revenues grew 35% to £497m due to very strong growth in Air
Care and Pest Control, further helped by the contribution of the two
acquisitions in Asia. Air Care saw further substantial growth behind the success
of Wizard electricals in North America where market share more than tripled its
level of early 2000. In Western Europe, Air Care grew strongly behind Air Wick
Crystal Air and the re-launch of electricals. Finally the category was
successfully launched in Eastern Europe. Growth in Pest Control came from market
share gains on Mortein in Australia behind recent innovations, and the roll-out
of the category in China and Eastern Europe.
Q4 net revenues grew 23% to £135m due to the continuing success in Air Care in
North America, Western and Eastern Europe and the two acquisitions.
Health & Personal Care. FY net revenues grew 8% to £412m. The main growth
drivers were Depilatories and Antiseptics. Depilatories grew behind the success
of the new Veet Aqua system in Europe. The category was rolled out in Turkey and
to new markets in Latin America. Dettol antiseptic grew strongly in Asia and
Africa Middle East behind new products like Dettol Hygienic Showerfoam, Talc and
a new soap for sensitive skin. The Health Care business has performed
increasingly well, finishing the year strongly.
Q4 net revenues grew 8% to £103m due to continuing success of Veet Depilatories
and a strong finish to the year in UK Health Care sales.
Total Household. FY net revenues grew 9% to £3,222m. Other household net
revenues declined marginally. In Q4, total household net revenues grew 8% to
£830m.
Food. FY net revenues were 3% behind last year at £208m due to higher trade
spend to defend the leading market share position of French's Mustard against
competitive launches and to slowing food industry sales. Q4 net revenues
declined by 5% to £70m.
Geographic Analysis at constant exchange from continuing operations
Western Europe : 40% of net revenues
Net revenues grew by 7% in FY to £1,390m. This very strong performance was due
to the success of Automatic Dishwashing, Fabric Treatment, Air Care,
Depilatories and Lavatory Care. The successful launch of Calgonit 3-in-1 in
Automatic Dishwashing has resulted in record market shares in several major
European markets. Air Wick Crystal Air has been a major success across the
region. The Veet Aqua system has driven growth in Depilatories. New product
launches, notably Harpic Powerfoam and in-bowl gel have driven strong growth in
Lavatory Care. YTD Operating margins increased by 150 bps to 21.4% behind better
leveraging of fixed cost partially offset by higher marketing investment.
Operating profits increased by 15% to £297m.
Net revenues grew 7% to £353m in Q4 and operating profits by 24% to £89m mainly
due to Dishwashing, Air Care, Fabric Treatment and UK Health Care.
North America : 31% of net revenues.
Net revenues grew 6% in FY to £1,073m. The growth came from the continuing
success of Air Care and Surface Care plus the Electrasol 2-in-1 launch in
Automatic Dishwashing. In Air Care, Wizard electricals continued to
substantially increase net revenues and market share. Lysol disinfecting cleaner
continued to gain share in spray and wipes. Electrasol 2-in-1 performed well.
Food was slightly behind 2000 due to defensive trade spend on French's mustard
and slowing food service industry sales. North American operating margins
expanded 140 bps to 14.7% (13.3%) due to substantial reductions in fixed costs
partly offset by higher listing fees due to an increase in the number of new
initiatives in 2001. Operating profit increased 16% to £158m.
Net revenues grew 5% to £298m in Q4 and operating profit by 10% to £66m behind
the initial roll-out of the 2-in-1 Dishwashing innovation, and continuing strong
growth in Air Care and Lysol Disinfecting Cleaning.
Latin America : 7% of net revenues.
Net revenues grew 4% in FY to £229m. Growth came from the continuing success of
Veja surface care supported by the roll out of the Pest Control and Depilatory
categories. Economic and market conditions deteriorated during the year in
Brazil and Argentina. Operating margin weakened by 120bps as higher dollar
denominated cost of goods could not be offset by local price increases. FY
operating profit was £3m (£6m).
Net revenues fell 2% to £64m in Q4 and operating profit was £3m (£5m) due to
economic difficulties in Argentina and foreign exchange impact in Brazil.
Asia Pacific : 12% of net revenues.
Net revenues grew 21% in FY to £397m including a £73m contribution from the
acquisitions in Korea and Indonesia. On continuing operations, net revenues
declined 2%. There was strong growth in Australia New Zealand offset by
softening conditions in certain Asian markets and a weak performance in China.
Operating margin on continuing operations improved by 190 bps to 4.9% (3.0%).
Including acquisitions, regional operating margins increased by 250 bps to 5.5%.
Operating profits increased substantially to £22m (£10m) of which £6m came from
the acquisitions.
Net revenues including acquisitions grew 14% to £98m in Q4 and operating profit
was £10m (£5m) driven primarily by strong performance in Australia New Zealand
and £2m operating profit from the acquisitions. Net revenues on continuing
operations in the region were down 3% due to lower market growth in certain
Asian markets and lower laundry detergent pricing in China offsetting positive
results elsewhere in the region.
Rest of World : 10% of net revenues.
Net revenues grew 14% in FY to £341m. There was good growth in both Eastern
Europe and Africa Middle East. In Eastern Europe the growth was driven by the
roll-out of Air Care, Pest Control and Furniture Care, by strong growth behind
Calgonit 2-in-1 Automatic Dishwashing, and by strong growth for Calgon Water
Softener. In Africa Middle East, growth came mainly from Dettol behind the
re-launch of liquid and soap, Fabric Treatment behind the roll-out of Vanish in
South Africa and from Health Care. YTD operating margins rose by 30 bps to 8.2%
with higher gross margins benefiting from Squeeze programs partly offset by
increased marketing investment and currency impact in South Africa towards the
year end. Operating profit increased 27% to £28m.
Net revenues grew 14% to £87m in Q4 and operating profit was £9m (£9m). This was
due to continuing strong growth for Dishwashing plus the roll-out of new
categories in Eastern Europe, continuing growth for Dettol in Africa Middle East
and the launch of Vanish Fabric Treatment in key markets.
New Initiatives 2002
New initiatives launching in Q1 2002 include Vanish Action Ball tabs Fabric
Treatment in Western Europe and Veet depilatory mousse in Western Europe,
Eastern Europe, Latin America and key Asian markets. Air Wick Crystal Air for
cars has been introduced across Western European markets. Mortein Pest Control
has introduced Ultra Spray, with the fastest ever kill, and Outdoor Barrier
Spray for protection of patios and terraces in Southern Hemisphere markets.
Financial Review
Non Operating Items. The non operating profit of £24m (2000 profit of £56m
relating to a number of disposals) primarily relates to disposals in 2001 of Dr
Becher in Germany and the European Firelighter business offset by costs of
closing the Indian joint venture and adjustments relating to a previous
disposal.
Net Interest. The net interest expense of £51m (£60m) was lower due to strong
cash inflow over the past year reducing the level of net borrowings offset by
the £132m cash cost of the two acquisitions.
Tax Rate. The tax rate for the period was 28.3% (29.5%).
Net Working Capital (defined as net current liabilities excluding current asset
investments, cash and short term borrowings) reduced by £120m at the year end to
minus £158m (minus £38m at the 2000 year end) ahead of the Company's three year
target to reduce net working capital by £250m by end 2002.
Cash Flow. Operating cash flow increased 20% to £603m due to higher operating
profit and significantly lower cash expense on reorganization. Interest payments
were lower at £50m (£74m) while net capital expenditure was slightly higher at
£101m (£96m). As a result of these, normalized net cash flow from ordinary
operations (defined as normalized operating cash flow less interest, tax and
capex) was £416m, an increase of £34m on 2000. Cash conversion, (defined as
normalized net cash flow from ordinary operations as a percentage of net
revenues) was 12.1%, an improvement of 20 basis points on last year.
Net Borrowings at the year end were £467m (year end 2000 £595m) a reduction of
£128m due to strong cash inflow offset by the cost of acquisitions. Net
borrowings consisted of debt of £453m (£535m) and the convertible capital bond
of £193m (same) offset by cash and short-term investments of £179m (£133m).
Balance Sheet. At the end of 2001, the Group had shareholders' funds of £1,281m
(£1,116m), an increase of 15%. Net borrowings were £467m (£595m). Total Capital
Employed in the business was £1,764m (£1,727m) an increase of 2%.
The Company's financial ratios improved significantly during the year. Interest
cover normalized was 10.3 times (7.5x). Net borrowings represented 26% of
capital employed (34%) treating the convertible bonds as borrowings.
Dividends.
The Board of Directors recommends a final dividend of 12.8 pence to give a full
year total of 25.5 pence, unchanged and in line with the previously communicated
policy of maintaining absolute dividends until cover reaches the average of the
international industry peer group. This full year dividend is covered 1.9 times
by normalized net income for the year (2000 1.5 times). The ex-dividend date
will be 27 February 2002 and the dividend will be paid on 22 May subject to
approval at the AGM on 7 May, to shareholders on the register at the record date
of 1 March.
For Further Information
Tom Corran telephone +44 (0) 1753 446 548
SVP Investor Relations & Corporate Communications
Lydia Wilhelm telephone +44 (0) 1753 446 550
Investor Relations Manager
Tim Spratt telephone +44 (0) 20 7269 7131
Financial Dynamics
The preliminary results for the year ended 31 December 2001 are unaudited. The
financial information set out in the announcement does not constitute the
Company's statutory accounts for the years ended 31 December 2001 or 31 December
2000. The financial information for the year ended 31 December 2000 is derived
from the statutory accounts for that year which have been delivered to the
Registrar of Companies. The auditors reported on those accounts; their report
was unqualified and did not contain a statement under either Section 237 (2) or
Section 237 (3) of the Companies Act 1985. The statutory accounts for the year
ended 31 December 2001 will be finalised 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 Company's Annual
General Meeting.
The Group at a Glance (unaudited)
Quarter Ended Dec 31 Year Ended Dec 31
2001 2000 2001 2000
£m £m £m £m
From total ordinary activities
900 860 Net revenues 3,439 3,202
5% 8% Net revenues growth 7% 5%
51.3% 49.7% Gross margin 49.6% 48.8%
195 168 EBITDA normalized* 599 529
21.7% 19.5% EBITDA margin normalized* 17.4% 16.5%
177 148 EBIT normalized* 525 451
19.7% 17.2% EBIT margin normalized* 15.3% 14.1%
169 136 Profit before tax normalized* 474 391
18.8% 15.8% PBT margin normalized* 13.8% 12.2%
123 97 Net Income normalized* 340 275
13.7% 11.3% Net Income margin normalized* 9.9% 8.6%
17.5p 13.9p EPS normalized* 48.6p 39.5p
16.8p 13.5p EPS normalized, diluted* 47.1p 38.8p
From continuing operations (excluding
acquisitions)
885 849 Net revenues 3,357 3,131
4% 11% Net revenues growth 7% 7%
195 165 EBITDA normalized* 590 510
22.0% 19.4% EBITDA margin normalized* 17.6% 16.3%
175 145 EBIT normalized* 518 433
19.8% 17.1% EBIT margin normalized* 15.4% 13.8%
* Normalized to exclude non-operating items.
Group profit and loss account
(unaudited)
Quarter Ended Dec 31 Year Ended Dec 31
2001 2000 % change 2001 2000 % change
£m £m £m £m
885 849 4% Net revenues from continuing operations excluding 3,357 3,131 7%
acquisitions
15 - - Acquisitions 73 - -
0 11 - Discontinued operations 9 71 -
900 860 5% Total net revenues 3,439 3,202 7%
(438) (433) 1% Cost of sales (1,734) (1,640) 6%
462 427 8% Gross profit 1,705 1,562 9%
(285) (279) 2% Net operating expenses (1,180) (1,111) 6%
175 145 21% Operating profit from continuing operations excluding 518 433 20%
acquisitions
2 - - Acquisitions 6 - -
0 3 - Discontinued operations 1 18 -
177 148 20% Total operating profit 525 451 16%
Non-operating items:
(4) 16 - (Loss)/ Profit on disposal of businesses 24 56 -
173 164 5% Profit on ordinary activities before interest 549 507 8%
(8) (12) (33%) Net interest expense (51) (60) (15%)
165 152 9% Profit on ordinary activities before taxation 498 447 11%
(49) (43) 14% Tax on profit on ordinary activities (141) (132) 7%
116 109 6% Profit on ordinary activities after taxation 357 315 13%
0 0 0% Attributable to equity minority interests (1) (1) 0%
116 109 6% Profit for the period 356 314 13%
(90) (90) 0% Ordinary dividends (179) (178) 1%
26 19 37% Retained profit for the period 177 136 30%
16.5p 15.6p On profit for the period 50.8p 45.2p
17.5p 13.9p On normalized profit for the period 48.6p 39.5p
15.9p 15.0p On profit for the period, diluted 49.2p 44.1p
16.8p 13.5p On normalized profit, diluted 47.1p 38.8p
Average common shares outstanding:
701.8 698.1 Basic 700.4 695.7
750.3 745.1 Diluted 749.7 741.3
Group balance sheet
As at December 31 (unaudited)
2001 2000
£m £m
Fixed assets:
Intangible assets 1,767 1,638
Tangible assets 575 535
2,342 2,173
Current assets:
Stocks 219 45
Debtors due within one year 586 622
Debtors due after more than one year 148 148
Investments 90 39
Cash at bank and in hand 89 94
1,132 1,148
Current liabilities:
Creditors due within one year:
Borrowings (186) (245)
Other (1,111) (1,053)
(1,297) (1,298)
Net current liabilities (165) (150)
Total assets less current liabilities 2,177 2,023
Non-current liabilities:
Creditors due after more than one year:
Borrowings (267) (290)
Other (156) (129)
Convertible capital bonds (193) (193)
(616) (612)
Provisions for liabilities and charges (264) (279)
Equity minority interests (16) (16)
Net Assets 1,281 1,116
Capital and reserves:
Called up share capital (including non-equity capital of £5m) 71 71
Shares to be issued 7 7
Share premium account 182 165
Merger reserve 142 142
Profit and loss account 879 731
Total shareholders' funds (including non-equity shareholders' 1,281 1,116
funds of £5m)
Group cash flow statement
For the year ended December 31 (unaudited)
2001 2000
£m £m
Reconciliation of operating profit to operating cash flows:
Operating profit 525 451
Non-cash items:
Depreciation and amortisation 74 78
Other non-cash movements - (4)
Purchase of Reckitt Benckiser N.V. B shares - (6)
Decrease/(increase) in stocks 26 (4)
Decrease in debtors 12 6
(Decrease)/increase in creditors and provisions (13) 98
Reorganisation and merger integration costs paid (21) (117)
Cash flow from operating activities 603 502
Return on investments and servicing of finance (50) (74)
Taxation (57) (67)
Capital expenditure and financial investment (101) (96)
Acquisitions and disposals (56) 81
Equity dividends paid (179) (177)
Cash inflow before use of liquid resources and financing 160 169
Management of liquid resources (55) 68
Financing (119) (190)
(Decrease)/increase in cash for the period (14) 47
Reconciliation of operating cash flow to net cash flow from ordinary operations
Operating cash flow (excluding reorganisation and merger 624 619
integration costs paid)
Returns on investments and servicing of finance (50) (74)
Taxation (57) (67)
Capital expenditure (101) (96)
Net cash flow from ordinary operations 416 382
Segmental Analysis (unaudited)
Analyses by geographical area and product segment of net revenues and operating
profit are set out below. The figures for each geographic area show the net
revenues and profit made by companies located in that area.
Quarter Ended Dec 31 Year Ended Dec 31
2001 2000 % change 2001 2000 % change
£m £m exch. rates £m £m exch. rates
actual const. actual const.
Net revenues - by geographical area
353 321 10% 7% Western Europe 1,390 1,279 9% 7%
298 280 6% 5% North America 1,073 962 12% 6%
64 75 (15%) (2%) Latin America 229 239 (4%) 4%
98 89 10% 14% Asia Pacific (1) 397 335 19% 21%
87 84 4% 14% Rest of World 341 316 8% 14%
900 849 6% 7% 3,430 3,131 10% 8%
0 11 - - Discontinued operations 9 71 - -
900 860 5% 6% 3,439 3,202 7% 6%
Note 1: Net revenues relating to acquisitions are £15m in Q4 2001 and £73m ytd
December 2001.
Operating profit - by geographical area
89 71 25% 24% Western Europe 297 254 17% 15%
66 58 14% 10% North America 158 128 23% 16%
3 5 (40%) (40%) Latin America 3 6 (50%) (40%)
10 5 100% 100% Asia Pacific (2) 22 10 120% 175%
9 9 0% 13% Rest of World 28 25 12% 27%
0 (3) - - Corporate 16 10 60% 33%
177 145 22% 20% 524 433 21% 19%
0 3 - - Discontinued operations 1 18 - -
177 148 20% 18% 525 451 16% 14%
Note 2: Operating profit relating to acquisitions is £2m in Q4 2001 and £6m ytd
December 2001.
% % Operating margin - by geographical area % %
25.2 22.1 Western Europe 21.4 19.9
22.1 20.7 North America 14.7 13.3
4.7 6.7 Latin America 1.3 2.5
10.2 5.6 Asia Pacific (3) 5.5 3.0
10.3 10.7 Rest of World 8.2 7.9
- - Corporate - -
19.7 17.1 15.3 13.8
0.0 27.3 Discontinued operations 11.1 25.4
19.7 17.2 15.3 14.1
Note 3: Asia Pacific margin excluding acquisitions is 9.6% in Q4 2001 and 4.9%
ytd December 2001.
Segmental Analysis (continued)
Quarter Ended Dec 31 Year Ended Dec 31
2001 2000 % change 2001 2000 % change
£m £m exch. rates £m £m exch. rates
Actual const. Actual const.
Net revenues - by product segment
830 777 7% 8% Household and Health & Personal Care (4) 3,222 2,928 10% 9%
70 72 (3%) (5%) Food 208 203 2% (3%)
900 849 6% 7% 3,430 3,131 10% 8%
0 11 - - Discontinued operations 9 71 - -
900 860 5% 6% 3,439 3,202 7% 6%
Note 4: Net revenues relating to acquisitions are £15m in Q4 2001 and £73m ytd
December 2001.
Operating profit - by product segment
150 121 24% 23% Household and Health & Personal Care (5) 466 383 22% 20%
27 27 0% (4%) Food 42 40 5% 0%
0 (3) - - Corporate 16 10 60% 33%
177 145 22% 20% 524 433 21% 19%
0 3 - - Discontinued operations 1 18 - -
177 148 20% 18% 525 451 16% 14%
Note 5: Operating profit relating to acquisitions is £2m in Q4 2001 and £6m ytd
December 2001.
% % Operating margin - by product segment % %
18.1 15.6 Household and Health & Personal Care (6) 14.5 13.1
38.6 37.5 Food 20.2 19.7
- - Corporate - -
19.7 17.1 15.3 13.8
0.0 27.3 Discontinued operations 11.1 25.4
19.7 17.2 15.3 14.1
Note 6: Household and Health & Personal Care operating margin excluding
acquisitions is 18.2% in Q4 2001 and 14.6% ytd December 2001.
Net revenues - Household and Health &
Personal Care
224 206 9% 9% Fabric Care 875 814 7% 6%
201 200 1% 4% Surface Care 807 764 6% 5%
123 114 8% 7% Dishwashing 449 413 9% 7%
135 113 19% 23% Home Care 497 371 34% 35%
103 96 7% 8% Health & Personal Care (7) 412 382 8% 8%
786 729 8% 9% Core Business 3,040 2,744 11% 10%
44 48 (8%) (8%) Other Household 182 184 (1%) (2%)
830 777 7% 8% Net Revenues - continuing operations 3,222 2,928 10% 9%
Note 7: Due to the termination of the Piramal Joint Venture in India, sales of
the Joint Venture partner have been reclassified from Health & Personal Care to
discontinued operations.
Earnings per ordinary share
For the year ended December 31, (unaudited)
The reconciliation between profit for the year and the weighted average number of shares used in the calculation
of the diluted earnings per share is set out below:
2001 2000
Profit Average number of Earnings per Profit for Average numbers Earnings per
for the shares share pence the year £m of shares share pence
year £m
Profit attributable to 356 700,389,601 50.8 314 695,737,827 45.2
shareholders
Dilution for Executive options 9,235,337 6,296,053
outstanding and Executive
Restricted Share Plan
Dilution for Employee 1,133,304 159,633
Sharesave Scheme options
outstanding
Dilution for convertible 13 38,964,597 13 39,100,746
capital bonds outstanding*
On a diluted basis 369 749,722,839 49.2 327 741,294,259 44.1
*After the appropriate tax adjustments, the profit adjustments represent the coupon on the convertible capital
bonds. The earnings per share impact reflects the effect of that profit and the assumption of the issue of
shares on conversion of the bonds.
Five times the number of Reckitt Benckiser Holdings BV A Shares have been included in the calculations of the
weighted average numbers of shares, in order to present the effect of the Shareholders' Agreement, under the
terms of which the position of the holders of the Reckitt Benckiser BV A shares is in substance the same as if
it held five new Reckitt Benckiser plc ordinary shares for every Reckitt Benckiser Holdings BV A share held.
The reconciliation of profit for the year earnings per share on the shares in issue between unadjusted and
adjusted EPS calculations bases is as follows:-
2001 2000
Profit for Average number of Earnings per Profit for Average numbers Earnings per
the year £m shares share pence the year £m of shares share pence
Basic EPS 356 700,389,601 50.8 314 695,737,827 45.2
Non Operating items (24) - (2.2) (56) - (5.7)
Taxation (including 8 - - 17 - -
deferred taxation)
340 700,389,601 48.6 275 695,737,827 39.5
Impact of dilution 13 49,333,238 - 13 45,556,432 -
On an adjusted, diluted 353 749,722,839 47.1 288 741,294,259 38.8
basis
The Directors believe that a diluted earnings per ordinary share, adjusted for the distorting effects of
non-operating items after the appropriate tax amount, provides the most meaningful of earning per ordinary share
in comparing the performance of the business over time.
This information is provided by RNS
The company news service from the London Stock Exchange
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