07.30.07
5. Reckitt Benckiser
United Kingdom
www.reckittbenckiser.com
Sales: $8.5 billionn
Sales:
$8.5 billion for household and personal care products. Corporate sales: $9 billion. Net income: $1.2 billion.Key Personnel:
Bart Becht, chief executive officer; Colin Day, chief financial officer; Javed Ahmed, executive vice president, North America and Australia and regional director, North American household; Freddy Caspers, executive vice president, developing markets; Gareth Hill, senior vice president, information services; Rakesh Kapoor, executive vice president, category management; Alain Le Goff, executive vice president, supply; Elio Leoni-Sceti, executive vice president, Europe; Frank Ruether, senior vice president, human resources.Major Products:
Fabric care—Calgon, Vanish and Woolite; Surface care—Dettol and Lysol; Dishwashing—Calgonit, Finish; Home care—Air Wick; Health and personal care—Veet, Nurofen, Strepsils and Clearasil.New Products:
Fabric care—Woolite Color; Surface Care—Cillit/Easy-Off Bang Stain & Drain, Harpic 2in1 Max, Harpic Power Plus; Dishwashing—Finish/Calgonit 5in1, Finish/Calgonit Quantum; Home care—Air Wick Xpress electricals; Health & Personal Care—Dettol Active Soap, Veet in Shower cream and Eternally Smooth Veet wax strips; Acquisition—Boots Healthcare International (Clearasil, Nurfen and Strepsils).
Comments:
Corporate sales jumped 18%, with underlying business gaining 6%. Last year, Reckitt Benckiser acquired Boots Healthcare International (BHI), which added three major brands—Clearasil, Nurfen and Strepsils.Fabric care sales rose 8% to $2.2 billion, driven by demand for Vanish Oxi Action Crystal White, Vanish Oxi Action Multi in Europe and the rollout of Vanish in new markets. Surface care sales rose 5% to nearly $1.7 billion helped along by the launch of Cillit/Easy-Off Bang Stain & Drain. Sales of disinfectants also rose. Dishwashing sales increased 3% to nearly $1.1 billion.
Dishwashing sales remained strong throughout Europe, helped along by the launch of Finish/Calgonit 5in1 and Finish/Calgonit Quantum, but the company noted that revenue growth was limited by higher promotional spending. Demand for Air Wick air fresheners propelled home care sales 11% to $1.2 billion.
Health and personal care sales were up 88% to $2 billion. The launch of Dettol Active soap provided a boost to the Dettol range, while depilatory sales rose following the introduction of Veet in Shower cream and Eternally Smooth Veet wax strips.
By region, sales in Europe, which accounted for 53% of revenues, rose 6%. North America and Australia (29% of sales) recorded a 5% sales gain and sales in developing markets surged 10%. The company noted that BHI sales rose 3% last year and that integration of the business is complete.
Reckitt Benckiser got off to a fast start in 2007. Sales jumped 8% in the first quarter.
“Reckitt Benckiser had an excellent first quarter with very good growth on both the base business (10% like-for-like) and the BHI business acquired in early 2006,” noted Bart Becht, chief executive officer.
All regions and categories grew and initiatives like Air Wick Freshmatic and Electricals, Finish and Calgonit Quantum and 5in1, Vanish Oxi Action Crystal White and Multi were well received. Based on that first quarter success, the company has raised its target for net revenues from 6% to between 7-8%. Last month, the company announced the sale of its Hermal prescription skin care business to Laboratorios Almirall S.A., the Spanish pharmaceutical company, for about $470 million.