Reckitt Benckiser's Q4 net profit rose 26% year-over-year to £521M, due in part to robust growth in emerging markets and in power brands, offsetting weakness in Europe, North America

Michelle Rivera

LONDON, England , February 8, 2012 (press release) – FY highlights (at constant exchange unless stated):

Total net revenue growth of +13% to £9,485m - ahead of +12% target.
LFL growth (excluding full year SSL and Paras) +4% base business (+4% including RBP).
SSL net revenue growth of +6% on a LFL basis to £843m.
Adjusted net income +9% actual exchange, (+11% constant) - ahead of +10% target.
Net working capital of minus £910m (2010: minus £925m). Net debt of £1,795m (2010: £2,011m), with strong cash flow offset by two dividends, acquisitions and restructuring.
The Board recommends a +8% increase in the final dividend to 70p per share, bringing the total dividend for 2011 to 125p (+9% versus 2010).

Q4 highlights (at constant exchange unless stated):

Total net revenue growth of +8% to £2,416m.
LFL growth (excluding SSL and Paras) +5% base business (+3% including RBP).
SSL net revenue growth of +27% to £191m.

Commenting on the full year results, Rakesh Kapoor, Chief Executive Officer, said:

"Reckitt Benckiser delivered another strong year, exceeding both our net revenue target (+12%) and adjusted net income target (+10%) in an increasingly tough environment. Like-for-like growth of 4% was underpinned by a robust performance in the base business, especially in Q4.

"Growth was driven in particular by excellent growth in emerging markets, and growth in our Powerbrands - Dettol, Nurofen, Mucinex, Strepsils, Gaviscon and Harpic. SSL had a good first year with LFL growth of 6%, although full year growth is flattered by a soft Q4 last year.

"At the end of 2011, the Suboxone film had captured a 48% volume share of the U.S. market. The in-market sales trend remains on a healthy growth track.

"In 2012 we are targeting total Company net revenue growth, excluding RBP, of 200bps above our market growth rate. We expect the market to grow at 1-2%. 2012 will be a year of higher investment but, ex RBP, we are still targeting to maintain our operating margins. "

Industry Intelligence Editor's Note: In an omitted table, Reckitt Benckiser posted £521 million in net profit in Q4 compared with £414 million a year ago.

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