Quarter 1 Preview-Replacement

Reckitt Benckiser PLC 9 April 2001 The issuer advises that the following replaces the 'QUARTER 1 PREVIEW' announcement released today 9 April 2001 at 13.35 under RNS number 8509B. A table was omitted and should be included. All other details remain unchanged. Full amended text appears below. 9 April 2001 Reckitt Benckiser Conference Call Underlying Q1 Net Revenue Growth at 7% to 8% Indicated Full Year Targets Confirmed with Increasing Confidence The following is the text for the Reckitt Benckiser conference call to be given today by Bart Becht, Chief Executive Officer, and Colin Day, Chief Financial Officer, at 1400 hours London time. The purpose of the call is to update the market on progress of the business in the first quarter of 2001 and to confirm the targets for the full year communicated with the Company's final results on 28 February. Commenting on the position, Bart Becht, Chief Executive Officer, said 'Reckitt Benckiser made a strong start to 2001 building on the momentum established in 2000 behind the Company's new growth strategy. The success of an increasing number of new product launches, the significant improvements in in-market execution in major markets behind the higher marketing investment, and the continuing good performance in developing markets all contributed to the broad-based growth in Q1. This good performance gives us increasing confidence in our targets for the full year.' Update on First Quarter The First Quarter saw underlying growth of the business continuing. Specifically, Q1 net revenue growth is expected to be in the range of 7% to 8% at constant exchange on continuing operations (2000 base £726m). These Q1 results will be affected, in comparison with 2000, by discontinued businesses and by exchange rate movements. Discontinued business will reduce reported net revenue growth by around 3 percentage points, while exchange rates will increase it by around 4 percentage points. As a result, reported net revenue growth for total operations at actual exchange is expected to be up to 9% in Q1 on the base of £748m reported in 2000. Profitability has been favorably affected by strong top line growth, continued steady improvement in gross margins, and further delivery of the promised merger savings partially offset by higher marketing investment. As a result, the Company looks for Q1 normalized net income to grow somewhat faster than the full year target growth of 18% at constant exchange on continuing operations (2000 base £46m). The recently announced acquisitions in Indonesia (Tiga Roda) and in Korea (Oxy) have now been completed and will be consolidated beginning with Q2 2001. Outlook for Full Year Despite the strong Q1 numbers, Reckitt Benckiser today confirmed its previously communicated full year targets although it indicates that its 4% full year growth target for net revenues on continuing operations at constant exchange may prove somewhat conservative. The target for net income remains 18% on continuing operations at constant exchange, and for net working capital the target remains a reduction of £50m. Confidence in the full year outturn is also supported by a growing list of new initiatives for 2001. The Company today announced a number of new initiatives for Q2 * Roll out of Airwick air care, Mortein pest control and Mr. Sheen furniture care in most of Eastern Europe * Roll-out of Mortein pest control into Mexico * Launch of furniture wipes and glass cleaning wipes in Europe and North America * Launch of Lysol disinfectant spray and trigger spray fabric refresher in North America The Q1 results will be announced on 10 May 2001 to coincide with the Reckitt Benckiser Annual General Meeting. Detailed Note -Restated Q1 2000 (adjusted for disposals) Geographical Area Net Revenues Operating Profit £m £m Western Europe 324 67 North America 201 10 Latin America 52 (1) Asia Pacific 79 2 Rest of World 70 3 Corporate - 0 Continuing Operations 726 81 Discontinued 22 5 operations Total Company 748 86 For Further Information Tom Corran telephone +44 1753 446 548 Senior Vice President, Investor Relations & Corporate Communications
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