Trading Statement

Reckitt Benckiser PLC 16 July 2001 16 July 2001 Good Q2 for Reckitt Benckiser 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 1400hrs London time. The purpose of the call is to update the market on progress of the business in the second quarter and first half of 2001. Commenting on the position, Bart Becht said 'Q2 was a good quarter for Reckitt Benckiser across all categories and geographies. The Company's growth strategy, the success of many of its new product launches, the increased investment in its brands and better in-market execution are all contributing to the good growth. Results in the first half were expected to be ahead of the full year target growth rates but the strength of our performance so far means that we are somewhat ahead of where we expected to be. We will therefore revisit the full year targets at the time of the half-year results in August.' Update on Q2 The second quarter saw further strong underlying growth with net revenue growth from continuing operations expected to be in the range of 5% to 6% at constant exchange (2000 base £785m). Total reported net revenue growth for the quarter also includes the first contribution from two recent acquisitions, which are performing in line with expectations, as well as the effect of previous disposals treated as discontinued businesses. The effect of these combined is to increase net revenue growth by less than 1%. Exchange rates on translation of overseas results into sterling will add over 2% to reported growth. As a result, total reported net revenue growth for total operations at actual exchange is expected to be in the range of 8% to 9% for the quarter on the base of £807m reported in 2000. Profitability continues to benefit from this strong top line growth and delivery of merger savings, offset by higher marketing investment. Consequently the Company looks for Q2 normalized net income growth to be around 18% for the total company at actual rates (2000 base of £71m), and comfortably above the target rate for the full year of 18% on a continuing operations basis at constant exchange. Half Year This will bring net revenue growth from continuing operations for the first half of the year to a range of 6% to 7% at constant exchange. Total reported net revenue growth for the half year is expected to be around 9% on a base of £1,555m reported in 2000. This includes the effect of the new acquisitions offset by the discontinued businesses which combined reduce the rate of growth by less than 1% while exchange will increase the reported growth rate by 3%. Normalized net income growth in the first half is expected to be above 20% for the total company at actual rates (2000 base of £116m) and comfortably above the target rate for the full year of 18% on a continuing operations basis at constant exchange. Outlook for Full Year In the light of these strong results, Reckitt Benckiser is reviewing its previously communicated targets of 4% net revenue growth and 18% net income growth (both at constant exchange on continuing operations). The Company has already indicated that it will likely exceed the net revenue target for the full year. The outcome of the review will be communicated with the half year results. For Further Information Tom Corran telephone +44 1753 446 548 SVP Investor Relations & Corporate Communications Lydia Wilhelm telephone +44 1753 446 550 Investor Relations Manager
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