3rd Quarter & 9 Mths Results

Reckitt Benckiser PLC
14 November 2001


                                                              14 November 2001

                              Strong Q3 Results

                       Full Year Targets to be Exceeded

Results at a Glance           Q3    % ch  Year to Date               % ch
Net Revenues                  £843m +7    £2,539m                    +8
Operating Profit              £116m +16   £348m                      +15
Net Income normalized         £74m  +19   £217m                      +22


  * Net revenues grew by 7% (8% at constant exchange) to £843m in Q3, and by
    8% (6% constant) to £2,539m in year to date (YTD). For continuing
    operations (excluding acquisitions and disposals) net revenue growth was
    5% (6% constant) in Q3 and 8% (6% constant) in YTD.
  * Operating profit increased by 16% to £116m in Q3 and by 15% to £348m in
    YTD. Q3 operating margin improved 110 basis points (bps) to 13.8% behind a
    70 bps gross margin improvement. YTD operating margins improved 80 bps to
    13.7% behind a 40 bps gross margin improvement.
  * Normalized net income grew by 19% in Q3 to £74m and by 22% in YTD to £
    217m. Including gains on disposals, YTD net income grew 17% to £240m.
  * Strong cash generation and a £35m reduction in net working capital
    resulted in a £1m reduction in net borrowings despite the £131m impact of
    acquisitions.
  * Good market share gains have been made by a number of recent innovations
    in Automatic Dishwashing, Air Care, Depilatories and Wipes.

Commenting on these results, Bart Becht, Chief Executive Officer, said

'Reckitt Benckiser had a strong Q3 in the face of more challenging market
conditions and world events. In the developed markets that represent 75% of
our business, growth and profitability were particularly good. This was
somewhat tempered by further softening in selected developing markets. However
in total the results were clearly ahead of industry growth as the Company
gained market share behind higher investment and the success of major
innovations.

'Based on current trading, we now expect to somewhat exceed the higher targets
we set at the time of the half year results. These targets were for net
revenue growth of 6% and net income growth of 18% for the total Company at
constant exchange, together with a £50m reduction in net working capital.
Exceeding these targets will make 2001 an excellent year for Reckitt
Benckiser, giving us confidence as we look forward to 2002. '



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 to date in 2001. These items are individually disclosed in the profit
    and loss account for both Quarter 3 and year to date.
  * Normalized. This excludes non-operating items. In Q3 profit on disposal
    of businesses was £5m, and year to date 2001 profit on disposal of
    businesses was £28m. In Q3 2000, there was £40m profit on disposal of
    businesses offset by a loss of £2m on disposal of fixed assets. In the
    year to date 2000 the profit on disposal was £40m.
  * 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 show 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

Third Quarter 2001

Net revenues in Q3 grew by 7% (8% at constant exchange) to £843m (£787m in
2000). Net revenues from continuing operations rose 5% (6% constant) to £816m
(£777m). The two recent acquisitions contributed net revenues of £27m in the
quarter.

Operating profit for Q3 grew 16% (16% constant) to £116m (£100m). Operating
profit from continuing operations increased by 19% to £114m (£96m). Gross
margin in the quarter rose by 70 bps to 49.1% (48.4%) despite the dilutive
impact of the two acquisitions. Marketing investment, particularly media,
increased significantly during the period. Operating margins increased by 110
bps to 13.8% (12.7%) and on a continuing operations basis by 160 bps to 14.0%
(12.4%).

Net income was £75m (£87m) reflecting profits on disposal of businesses.
Normalized net income grew 19% (20% constant) to £74m (£62m).

Year to Date: Nine Months to September 2001

Net revenues grew by 8% (6% constant) to £2,539m (£2,342m). Net revenues from
continuing operations grew by 8% (6% constant) to £2,472m (£2,282m).
Acquisitions contributed £58m to net revenues in the period.

Operating profit increased 15% (13% constant) to £348m (£303m). Operating
profit from continuing operations increased 19% (17% constant) to £343m (£
288m). Gross margins rose 40 bps to 48.9% (48.5%) mainly as a result of
savings from the Squeeze program. To support the Company's active new product
and roll-out program, marketing investment in the nine months rose
substantially, with media investment over 20% higher. Operating margins
increased by 80 bps to 13.7% (12.9%). On a continuing operations basis,
margins increased by 130 bps to 13.9% (12.6%).

Net income for the nine months was £240m (£205m). Normalized net income grew
22% (20% constant) to £217m (£178m). Net interest expense of £43m (£48m) was
reduced due to lower interest rates, and strong cash inflow over the past year
reducing the level of net borrowings offset by the cost of the two
acquisitions. The tax rate for the period on the normalized taxable profit was
29%, in line with the likely rate for the year.

Category Review at constant exchange rates

Fabric Care. YTD net revenues grew 5% to £651m. Fabric treatment benefited
from the roll-out of Vanish in Asia and Latin America and the re-launch in
France. Calgon grew strongly in Eastern Europe due to higher investment and
improved marketing execution and to early results from the launch of Calgon
Gel. Resolve carpet cleaner gained share behind the success of the steam
machine product launched in 2000. Laundry detergent grew strongly in Europe
offsetting the significant Q3 impact due to deteriorating price conditions in
China.

Q3 net revenues grew 8% to £221m due to strong performance across Western and
Eastern Europe.

Surface Care. YTD net revenues grew 5% to £606m. Lysol disinfectant cleaner
continues to capture share both in spray and wipes segments in North America.
The roll-out of surface care wipes into new segments is working well with the
success of the new furniture and glass wipes. Harpic lavatory care benefited
from a number of initiatives, including an in-bowl gel, Powerfoam and tablets.
Lysol Cling in-bowl gel has also grown well in North America

Q3 net revenues were flat at £200m reflecting the impact of the large surface
care business in Latin America, and in particular in Brazil, which has been
significantly impacted by devaluation and market slowdown.

Dishwashing. YTD net revenues grew 8% to £326m. The launch of Calgonit 3-in-1
across Europe continues to be an outstanding success, with strong net revenue
growth and record market shares now achieved in Spain, building on the
significant gains and earlier highs achieved in almost all other European
markets. In North America, the new Electrasol 2-in-1 has made a good start,
recording clear market share gains. The category has also shown good growth in
Asia Pacific and Rest of World.

Q3 net revenues grew 19% to £106m in part due to an expected rebound in North
America, and to continuing success in Western Europe.

Home Care. YTD net revenues grew 40% to £362m due to continuing outstanding
success for Air Care, further growth in Pest Control and the impact of the two
acquisitions which mainly operate in the Home Care category - on a continuing
operations basis, the category growth was 27%. Air Care has seen further
substantial growth behind the success of Wizard electricals in North America
where market share is close to triple its level of early 2000. Air Wick
Crystal Air and the re-launch of electricals led to substantial growth in
Europe and the category was successfully launched in Eastern Europe. Mortein
pest control benefited from market share gains in Australia behind recent
innovations, and the roll-out of the category in China and Eastern Europe.

Q3 net revenues grew 39% to £126m due to the two acquisitions and to the
continuing success in Air Care in North America and Western and Eastern
Europe.

Health & Personal Care YTD net revenues grew 8% to £309m. 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 Asia and Latin America. Dettol antiseptic grew
strongly due to higher investment and better execution particularly in a
number of Asian markets and Africa/Middle East. The Health Care business had a
slow start to the year in the absence of a major 'flu season in the UK, but
has performed strongly more recently. Category net revenues have been restated
for the discontinuance of the Piramal Joint Venture in India.

Q3 net revenues grew 12% to £102m due to continuing success of Depilatories,
further rebound in UK Health Care sales and consistent growth for Dettol in
Asia and Africa Middle East.

Total Household YTD net revenues grew 10% to £2,392m (£2,151m). Other
household net revenues declined marginally. In Q3, total household net
revenues also grew 10% to £800m (£734m).

Food YTD net revenues were 1% behind last year at £138m (£131m). Market shares
remain robust, with French's mustard in particular increasing share. However
net revenues have been affected by slowing demand in the food service
industry. Q3 net revenues declined by 2% to £43m (£43m).



Geographic Analysis at constant exchange from continuing operations

Western Europe : 41% of net revenues

Net revenues grew by 7% in YTD to £1,037m. This very strong performance was
due to the success of automatic dishwashing, 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, supported by increased marketing investment, 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 100 bps to 20.1% behind better leveraging of fixed cost offset by
increased marketing investment. Operating profits increased by 12% to £208m (£
183m).

Net revenues grew 9% to £341m in Q3 and operating profits by 20% to £71m
mainly due to Dishwashing, Air Care, Fabric Treatment and Lavatory Care behind
new initiatives.

North America : 30% of net revenues.

Net revenues grew 6% in YTD to £775m. The growth came from the continuing
success of air care and surface care plus the success of the Electrasol 2-in-1
launch in automatic dishwashing. Wizard electricals air care continued to
substantially increase net revenues and market share. Lysol disinfecting
cleaner continued to gain share in spray and wipes. Electrasol 2-in-1 was
launched with success, recording clear market share gains. Food was slightly
behind 2000 due to heavy competition at the start of the year and the impact
of a slowing economy on the food service industry. North American operating
margins expanded 160 bps to 11.9% (10.3%) 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 23% to £92m (£
70m).

Net revenues grew 7% to £271m in Q3 and operating profit by 32% to £37m behind
the initial success of the 2-in-1 Dishwashing innovation, and continuing
strong growth in Air Care and Disinfecting Cleaning.

Latin America : 7% of net revenues.

Net revenues grew 6% in YTD to £165m. Growth came from the continuing success
of Veja multi purpose cleaner supported by the roll out of the pest control
and depilatory categories. Market conditions deteriorated during the period
due to currency devaluation. Operating margin deteriorated by 60bps due to
higher cost of goods following devaluation and significantly higher marketing
investment. YTD operating profit was £0m (£1m).

Net revenues grew 2% to £50m in Q3 and operating loss was £1m (£0m) with
slowing growth in local currencies aggravated by the impact of devaluation of
the key Brazilian currency.

Asia Pacific : 12% of net revenues.

Net revenues grew 23% in YTD to £299m (£246m) including a £58m contribution
from the acquisitions in Korea and Indonesia. On continuing operations, net
revenues declined 1%. There was good growth in Australia/New Zealand behind
strong performance in Mortein pest control, fabric treatment, automatic
dishwashing and surface care. This was offset by softening conditions in
selected Asian markets and a weak Q3 performance in China. Operating margins
on continuing operations improved by 130 bps to 3.3% (2.0%) helped by cost
savings in Australia/New Zealand and better leveraging of fixed costs.
Including the acquisitions, regional operating margins increased by 200 bps to
4.0%. Operating profits increased substantially to £12m (£5m) of which £4m
came from the acquisitions. These have traded in line with expectations, and
integration with the existing Reckitt Benckiser business is proceeding well.

The regional net revenues and profits have been restated for the
discontinuance of the Piramal Joint Venture in India.

Net revenues grew 17% to £96m in Q3 and operating profit was £2m (£2m) mainly
due to the acquisitions. Continuing operations in the region were down due to
a weak performance in China offsetting positive results elsewhere in the
region. Lower results in China were due to falling prices in the laundry
detergent market exacerbated by a slow Company response resulting in the need
to reduce trade inventories.

Rest of World : 10% of net revenues.

Net revenues grew 14% in YTD to £254m. Growth came across 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 behind higher
investment for Calgon water softener. In Africa/Middle East, growth came
mainly from Dettol, due to higher investment and better execution in-market,
from Fabric Treatment behind the roll-out of Vanish and from Health Care. YTD
operating margins rose by 60 bps to 7.5% with higher gross margins benefiting
from Squeeze programs partly offset by increased marketing investment.
Operating profit increased 27% to £19m (£16m).

Net revenues grew 13% to £85m in Q3 and operating profit was £6m (£6m) due to
continuing strong growth in Calgon water softener and Calgonit automatic
dishwashing, plus the roll-out of new categories Eastern Europe and continuing
growth for Dettol in Africa Middle East.

New Initiatives 2001

The major focus in the second half of the year is on rolling out major new
initiatives across geographies. Calgonit 3-in-1 is being rolled out in Eastern
Europe. Wizard Crystal Air has been introduced in North America. Air Wick
Click Spray has been introduced across Western Europe. Air Wick Electricals,
Crystal Air and Click Spray are being introduced in various Eastern European
markets. Calgon Gel has been introduced in additional Western European
markets. Mortein insect seeker technology is being rolled out in Africa and
Latin America ahead of the pest season in the Southern Hemisphere. Veet
depilatories are being rolled out to additional markets in Latin America ahead
of the peak summer season.

Among new product introductions, Harpic Flushable Toilet-Seat Wipes have been
introduced in selected European markets. Wipes technology has also been
extended in floor cleaning in North America. In Fabric Care, Woolite Black
fine fabric detergent has been introduced in several European and North
American markets.

Financial Review

Non Operating Items. The disposal in Q3 was Dr Becher in Germany with a profit
on disposal of £5m. The other disposal in the year to date was the European
Firelighter business in Q2.

Net Interest. The net interest expense of £43m (£48m) was lower due to lower
interest rates, and strong cash inflow over the past year reducing the level
of net borrowings offset by the cost of the two acquisitions.

Tax Rate. The tax rate for the period on the normalized taxable profit was
29%, in line with the likely rate for the year.

Net Working Capital (defined as net current liabilities excluding current
asset investments, cash and short term borrowings) reduced by £35m at the end
of Q3 to minus £73m (minus £38m at the 2000 year end) in line with the
Company's full year target to reduce net working capital by £50m.

Net Borrowings at the end of Q3 were £594m (year end 2000 £595m) a reduction
of £1m due to strong cash inflow offset by the £131m cash cost of two
acquisitions earlier in 2001, in Korea and Indonesia.

Full Year Results

The Company plans to release preliminary results for the full year 2001 on
Wednesday 20th February.

For Further Information.

Tom Corran      Telephone [phone]
SVP Investor Relations & Corporate Communications

Lydia Wilhelm Telephone [phone]
Investor Relations Manager


The Group at a Glance (unaudited)
Quarter Ended Sept 30                                 Nine Months Ended Sept 30

2001  2000                                                   2001          2000
£m    £m                                                       £m            £m

                        From total ordinary activities
843   787             Net revenues                          2,539         2,342
7%    5%              Net revenues growth                      8%            4%
49.1% 48.4%           Gross margin                          48.9%         48.5%
136   119             EBITDA normalized*                      404           361
16.1% 15.1%           EBITDA margin normalized*             15.9%         15.4%
116   100             EBIT normalized*                        348           303
13.8% 12.7%           EBIT margin normalized*               13.7%         12.9%
101   86              Profit before tax normalized*           305           255
12.0% 10.9%           PBT margin normalized*                12.0%         10.9%
74    62              Net Income normalized*                  217           178
8.8%  7.9%            Net Income margin normalized*          8.5%          7.6%
10.5p 8.7p            EPS normalized*                       31.0p         25.5p
10.3p 8.6p            EPS normalized, diluted*              30.3p         25.2p

              From continuing operations (excluding acquisitions)
816   777             Net revenues                          2,472         2,282
5%    8%              Net revenues growth                      8%            5%
132   115             EBITDA normalized*                      396           345
16.2% 14.8%           EBITDA margin normalized*             16.0%         15.1%
114   96              EBIT normalized*                        343           288
14.0% 12.4%           EBIT margin normalized*               13.9%         12.6%


* Normalized to exclude non-operating items.



Selected Financial Information (unaudited)

Group Balance Sheet Data
                                                      Sept 30,          Dec 31,
                                                          2001             2000
                                                            £m               £m
Net working capital                                       (73)             (38)
Net borrowings                                             594              595

Group profit and loss account (unaudited)

Quarter Ended Sept 30                                 Nine Months Ended Sept 30
2001  2000  %                                               2001    2000      %
£m    £m    change                                            £m      £m change
                   Net revenues from continuing
816   777   5%     operations excluding acquisitions       2,472   2,282     8%

27    -     -      Acquisitions                               58       -      -

0     10    -      Discontinued operations                     9      60      -
843   787   7%     Total net revenues                      2,539   2,342     8%

(429) (406) 6%     Cost of sales                         (1,296) (1,207)     7%
414   381   9%     Gross profit                            1,243   1,135    10%

(298) (281) 6%     Net operating expenses                  (895)   (832)     8%
                   Operating profit from continuing
114   96    19%    operations excluding acquisitions        343     288    19%

2     -     -      Acquisitions                                4       -      -

0     4     -      Discontinued operations                     1      15      -
116   100   16%    Total operating profit                    348     303    15%

                   Non-operating items:

5     40    -      Profit on disposal of businesses           28      40      -

0     (2)   -      Profit/(Loss) on disposal of tangible       0       0      -
                   fixed assets
121   138   (12%)  Profit on ordinary activities before      376     343    10%
                   interest
(15)  (14)  7%     Net interest expense                     (43)    (48)  (10%)
                   
106   124   (15%)  Profit on ordinary activities before      333     295    13%
                   taxation
(31)  (38)  (18%)  Tax on profit on ordinary activities     (92)    (89)     3%
                   
75    86    (13%)  Profit on ordinary activities after       241     206    17%
                   taxation
0     1     -      Attributable to equity minority           (1)     (1)     0%
                   interests
75    87    (14%)  Profit for the period                     240     205    17%

0     0     -      Ordinary Dividends                       (89)    (88)     1%
75    87    (14%)  Retained profit for the period            151     117    29%

                   Earnings per ordinary share:

10.7p 12.5p        On profit for the period                34.3p   29.6p

10.5p 8.7p         On normalized profit for the period     31.0p   25.5p

10.5p 12.1p        On profit for the period, diluted       33.4p   29.0p

10.3p 8.6p         On normalized profit, diluted           30.3p   25.2p
                   Average common shares outstanding:

701.0 696.6        Basic                                   699.9   694.9

751.0 741.7        Diluted                                 749.5   739.6



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 Sept 30                                 Nine Months Ended Sept 30

2001 2000 % change                               2001   2000           % change
£m   £m   exch. rates                              £m     £m        exch. rates
          actual const                                             actual const
                      Net revenues - by geographical area
341  310  10%    9%        Western Europe        1,037   958           8%    7%

271  245  11%    7%        North America           775   682          14%    6%

50   56   (11%)  2%        Latin America           165   164           1%    6%

96   83   16%    17%       Asia Pacific            299   246          22%   23%

85   83   2%     13%       Rest of World           254   232           9%   14%

843  777  8%     9%                              2,530 2,282          11%    9%

0    10   -      -         Discontinued              9    60            -     -
                           operations
843  787  7%     8%                              2,539 2,342           8%    6%

                    Operating profit - by geographical area

71  59  20%     20%   Western Europe               208    183        14%    12%

37  26  42%     32%   North America                 92     70        31%    23%

(1) 0   -       -     Latin America                  0      1          -      -

2   2   0%      0%    Asia Pacific                  12      5       140%   200%

6   6   0%      20%   Rest of World                 19     16        19%    27%

1   3   (67%)   (67)% Corporate                     16     13        23%    23%

116 96  21%     20%                                347    288       20%   18%

0   4   -       -     Discontinued operations        1     15         -       -

116 100 16%     16%                                348    303       15%     13%




%     %     Operating margin - by geographical area                  %        %

2001  2000                                                        2001     2000

20.8  19.0  Western Europe                                        20.1     19.1

13.7  10.6  North America                                         11.9     10.3

(2.0) 0.0   Latin America                                          0.0      0.6

2.1   2.4   Asia Pacific                                           4.0      2.0

7.1   7.2   Rest of World                                          7.5      6.9

-     -     Corporate                                                -        -
13.8  12.4                                                        13.7     12.6

0.0   40.0  Discontinued operations                               11.1     25.0

13.8  12.7                                                        13.7     12.9



Segmental Analysis (continued)

Quarter Ended Sept 30                                 Nine Months Ended Sept 30
2001 2000 % change                                    2001   2000      % change
£m   £m   exch. rates                                 £m       £m   exch. rates
          actual const.                                           actual const.

                      Net revenues - by product segment

800  734  9%     10%    Household and Health &        2,392 2,151    11%    10%
                        Personal Care

43   43   0%     (2%)   Food                            138   131     5%   (1%)
                       
843  777  8%     9%                                   2,530 2,282    11%     9%

0    10   -      -      Discontinued operations           9    60      -      -

843  787  7%     8%                                   2,539 2,342     8%     6%


                    Operating profit - by product segment

109 91  20%    20%    Household and Health & Personal Care 316 262 21% 19%

6   2   200%   200%   Food                                  15  13 15%  7%

1   3   (67%)  (67%)  Corporate                             16  13 23% 23%

116 96  21%    21%                                         347 288 20% 18%

0   4   -      -      Discontinued operations                1  15   -   -

116 100 16%    16%                                         348 303 15% 13%


%     %      Operating margin - by product segment               %            %

2001  2000                                                    2001         2000
13.6  12.4   Household and Health & Personal Care             13.2         12.2

14.0  4.7    Food                                             10.9          9.9

-     -      Corporate                                           -            -

13.8  12.4                                                    13.7         12.6

0.0   40.0    Discontinued operations                         11.1         25.0

13.8  12.7                                                    13.7         12.9

             Net revenues - Household and Health & Personal Care

221 206 7%    8%    Fabric Care                             651   608  7%   5%

200 203 (2%)  0%    Surface Care                            606   564  7%   5%

106 90  18%   19%   Dishwashing                             326   299  9%   8%

126 92  37%   39%   Home Care                               362   258 40%  40%

102 91  12%   12%   Health & Personal Care *                309   286  8%   8%
755 682 11%   12%   Core Business                         2,254 2,015 12%  10%

45  52  (13%) (13%) Other Household                         138   136  1% (1%)
800 734 9%    10%   Net Revenues - continuing operations  2,392 2,151 11%  10%

(*) 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.