RECKITT BENCKISER GROUP PLC: 3rd Quarter Results

INTERIM MANAGEMENT STATEMENT Q3 2012                       
24 October 2012 
                               STRONG Q3                                    
                      2012 FY TARGETS REITERATED                            
Results at a glance         Q3    % change % change   YTD    % change % change 
                        £m     actual  constant    £m     actual  
constant 
                              exchange exchange          exchange exchange 
                                                                          
Net revenue               2,422      -1       +4     7,091      0        +4    
                                                                          
-Like-for-like growth*                        +5                         +4      
                                                                            
Net Revenue by Segment        
                                                                          
-ENA                      1,185      -4       0      3,442      -4       -1    
                                                                          
-LAPAC                     584       +1       +9     1,736      +6      +11  
-RUMEA                     358       +1       +6     1,077      +3       +8    
                                                                          
-Food                       72       +1       0       228       +5       +3    
                                                                          
Total ex RBP              2,199      -2       +4     6,483      0        +4    
                                                                          
-RB Pharmaceuticals        223       +7       +6      608       +7       +6    
                                                                          
Total Net Revenue         2,422      -1       +4     7,091      0        +4    
                                                                          
Net Revenue by Category                                                        
                                                                          
-Health                    557       +2       +6     1,461      0        +3    
                                                                          
-Hygiene                   907       -1       +5     2,786      +2       +6    
                                                                          
-Home                      505       -3       +3     1,465      -3       +1    
                                                                          
-Portfolio brands          158      -13       -5      543       -7       -1    
* Like-for-like ("LFL") growth excludes the impact of changes in exchange
rates, major acquisitions and disposals. 
Highlights: 
* Year to date like-for-like (LFL) net revenue growth (ex RBP) of +4%, driven 


    by strong Emerging Markets Areas (EM) growth.
      * Strong Q3 LFL growth +5% (+5% ex RBP).
      * Europe North America (ENA) Q3 LFL growth +2%. This improved performance was
    driven by higher brand equity investment (BEI), a good start for the new
    Mucinex Fast Max and a stabilising promotional environment in laundry care
    and Vanish.
      * YTD global growth driven by Dettol/Lysol, Harpic, Finish, Gaviscon, Durex
    and Vanish.
      * RBP - volume (mg) market share of Film grown to 60% up from 48% at the end
    of 2011.
    Commenting on these results, Rakesh Kapoor, Chief Executive Officer, said:

"Reckitt Benckiser's strong third quarter results were underpinned by an
excellent performance in emerging markets and an improved performance in Europe
North America. Growth came from all core Areas and categories. RBP continues to
make very good progress with Suboxone sublingual film. I am verypleased that
our new strategy and our renewed commitment to managing the business for the
long term are showing encouraging results.

Our results give us the confidence to reiterate our FY 2012 target of
like-for-like net revenue growth* of 200bps above our market growth rate. We
now expect market growth to be at the top end of the 1-2% range. We continue to
expect to maintain full year operating margins.*"

*ex RBP
                    Summary Analysis: % net revenue growth                     

YTD Sept 2012      Like-for-like  Acquisitions &     Exchange       Reported   
                                    Disposals*                                 


                                                                           
ENA                      0%             -1%            -3%            -4%       
                                                                           
LAPAC                  +11%              0%            -5%            +6%       
                                                                           
RUMEA                   +8%              0%            -5%            +3%       
                                                                           
Food                    +3%              0%            +2%            +5%       
                                                                           
TOTAL ex RBP            +4%              0%            -4%             0%       
                                                                           
RBP                     +6%              0%            +1%            +7%       
                                                                           
TOTAL GROUP             +4%              0%            -4%             0%       
* Reflects the acquisition of Paras (Jan-March), withdrawal from Private Label
(Propack), disposal of Paras Personal Care and a number of minor businesses. 
ENA               55% of core net revenue 
YTD 2012 total net revenue decreased to £3,442m, with flat LFL growth (total,
constant -1%). Although market conditions remain challenging, our volume shares
have shown resilience during the year behind significant BEI. 
In Health, Gaviscon and Durex delivered strong results, though this was offset
by weakness YTD in seasonal brands such as Mucinex, Strepsils and certain
products within Nurofen on the back of a slower start to the 'flu season
earlier in the year. Hygiene brands of Lysol and Finish performed strongly,
particularly in the US behind new initiatives such as Lysol Power & Free,
Finish Quantum and All-in-1 gel packs and tablets. In the Home category, Vanish
shares showed positive momentum, although the market is still down. 
In Q3 LFL growth was +2%. The new organisation is now settling to drive higher
focus and greater speed and scale of executions across the Area. This combined
with higher BEI has shown encouraging early results. The price and promotional
activities in Laundry Detergents are stabilising and our efforts to strengthen
our Vanish franchise is bearing fruit. Additionally, Mucinex had a very strong
quarter, behind encouraging trade acceptance of our new Mucinex Fast Max
caplets and a good start to the `flu season. 
LAPAC             28% of core net revenue 
YTD 2012 total net revenue increased +11% (constant) to £1,736m, with LFL
growth of +11%. Growth continues to be broad based across LATAM, North and
South East Asia, driven by distribution expansion, innovation and BEI. In
Health, Paras brands in India and Durex, particularly in China, grew very
strongly. In Hygiene, Dettol, Finish, and Harpic delivered strong growth behind
initiatives such as Dettol Daily Care, Re-energize, and High Performance for
Men soap and shower gels. Surface cleaners continued to experience good growth
across the Area. Vanish and Air Wick performed well in the Home category. 
In Q3 LFL growth was +11% as trends experienced during the first six months of
the year continued. 
RUMEA             17% of core net revenue 
YTD 2012 total net revenue increased +8% (constant) to £1,077m with LFL growth
of +8%. Growth was broad based across all regions. On a category basis Health
growth was driven by Durex, Gaviscon and Strepsils. Hygiene performed
particularly well behind Dettol, Finish, Harpic and Veet driven by initiatives
such as Dettol Daily Care and Re-energize. Air Wick performed well in the Home
category. 
In Q3 good growth across all regions and categories contributed to +7% LFL
growth. 
Food 
YTD 2012 total net revenue increased +3% (constant) to £228m led by growth in
French's Mustard and Frank's Red Hot Sauce. 
In Q3 LFL growth was flat due to weaker US market conditions and increased
private label activity, particularly around French Fried Onions. Our core
French's mustard and Franks Red Hot franchises remain strong. 
Pharmaceuticals (RBP) 
YTD 2012 total net revenue increased +6% (constant) to £608m. Growth came from
continued strong volume growth in the US offset by dilution from increased Film
penetration and higher Medicaid rebates. Conversion from tablets to Film
continues to increase with market volume share now 60%, up from 48% at the end
of 2011, creating a significantly more sustainable business. 
In Q3 LFL growth was +6%, experiencing similar trends to those during the first
half of 2012. 
RBP has recently announced its voluntary discontinuation of Suboxone tablets in
the USA due to increasing concerns with pediatric exposure. Further details can
be found on our website - www.rb.com 
At this time the Group has no knowledge as to the exact timing of potential
generic competition to the Suboxone tablets in the US. For further information
surrounding exclusivity of Suboxone products, please refer to page 11 of the
2011 Annual Report and Financial Statements. 
         YTD 2012 Category Review (at Constant Exchange Rates)              
Health.  Net revenue increased +3% (+4% LFL) to £1,461m. Brand performances 
from
Durex, Paras brands and Gaviscon have been particularly pleasing and offset a
slow start to the `flu season earlier in the year, which impacted Mucinex,
Strepsils and some of our Nurofen range. New initiatives such as Performax
Intense condoms, plus increased investments in BEI and distribution in China
drove Durex growth, while the roll out and support of Double Action in a number
of Emerging Markets underpinned the strong performance in Gaviscon. 
In Q3 Health grew by 7% on an LFL basis, with continuing growth trends on
non-seasonal products combined with an encouraging start to the `flu season,
and good trade acceptance of our new Mucinex Fast Max caplets. 
Hygiene.  Net revenue increased +6% on both a constant and LFL basis to 
£2,786m,
largely driven by strong growth in the Dettol / Lysol franchise in all our
three areas. New initiatives such as Dettol Daily care and Re-energize in LAPAC
and RUMEA and several initiatives such as Lysol Power & Free in ENA underpinned
this strong performance. Finish continues to perform well in a number of
markets globally, and particularly in the US where Quantum and All-In-1 tablets
and gel packs have gained significant market share this year. Veet delivered
good growth behind initiatives such as the Veet Easy Wax Electrical Roll-On.
Harpic enjoyed very strong growth in LAPAC and RUMEA by driving category
penetration via consumer education and increased distribution, backed by the
continued success of Harpic Powerplus and Harpic Hygienic blocks in all
geographies. 
In Q3 Hygiene grew by +5% on a LFL basis, as trends experienced in the first 
six
months continued in respect of most brands. Offsetting this was Autodish due to
phasing of promotional activity in the US. 
Home.  Net revenue increased +1% (+2% LFL) to £1,465m. Growth came from Vanish
where there has been excellent growth in a number of emerging market countries,
combined with improving share trends in ENA. Air Wick produced a robust
performance behind Freshmatic, Aqua Mist, candles and launch of innovations
such as Filter & Fresh. 
In Q3 Home grew by +3% on an LFL basis underpinned by strong growth in Vanish. 
Portfolio Brands.  Net revenue decreased -1% to £543m, with the decline in 
total
revenue largely due to the ongoing discontinuation of the Private Label
business and disposal of other minor brands. On a LFL basis, net revenue
increased slightly (+1%) due to good Q3 growth in the Russian medical business
and a more stable performance in laundry detergents in Southern Europe. 
In Q3 LFL growth was +7% 
                          Financial Position                                
There has been no material change to the financial position of the company
since the published 2011 Annual Report and Accounts. 
                             2012 Targets                                   
The YTD 2012 results position the Group well to achieve its FY 2012 financial
targets. 
For the Group excluding RBP, the target is for like-for-like net revenue growth
of +200 basis points ahead of our market growth. We expect market growth to be
at the top end of the +1-2% range we have seen this year. 
We also expect to maintain margins (ex RBP) as we invest behind brand equity
building initiatives. 
For further information, please contact: 
Reckitt Benckiser                                             
                                                                           
Richard Joyce                                          +44 (0)1753 217800 
Director, Investor Relations                                                   
                                                                           
Andraea Dawson-Shepherd                                +44 (0)1753 446447        
             
SVP, Global Corporate Communication & Affairs                                   
                                                                           
Brunswick (Financial PR)                              +44 (0)20 7404 5959    
David Litterick                                                                 
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. These
forward-looking statements are made pursuant to the "Safe Harbor" provisions of
the United States Private Securities Litigation Reform Act of 1995. 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. The principal risks and
uncertainties which could have a material effect on the Group's performance are
described on pages 13 and 14 of the Annual Report and Financial Statements for
the year ended 31 December 2011. Past performance cannot be relied upon as a
guide to future performance. 
Basis of Presentation and Exceptional Items 
Where appropriate, the term "like-for-like" (LFL) describes the performance of
the business on a comparable basis, excluding the impact of acquisitions,
disposals, discontinued operations and foreign exchange. 
Where appropriate, the term "core business" represents the ENA (Europe and
North America), RUMEA (Russia / CIS, Africa, North Africa, Middle East and
Turkey) and LAPAC (Latin America, North Asia, South Asia and ANZ) geographic
areas, and excludes RBP and RB Food. 
END 
-0- Oct/24/2012 11:00 GMT
 
 
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