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    Top Companies Report

    3. Reckitt Benckiser

    ...

    07.30.10
    United Kingdom
    www.rb.com
    Sales: $12.1 billion


    Key Personnel:
    Bart Becht, chief executive officer; Freddy Caspers, executive vice president, developing markets; Colin Day, chief financial officer; Amedeo Fasano, executive vice president, supply; Rob de Groot, executive vice president, North America and Australia; Salvatore Caizzone, executive vice president, Europe; Gareth Hill, senior vice president, information services; Rakesh Kapoor, executive vice president, category development; Simon Nash, senior vice president, human resources

    Major Products:
    Household and personal care products. Brands include Vanish, Calgon, Woolite, Lysol, Dettol, Cillit Bang, Harpic, Air Wick, Mortein, Dettol, Veet, Clearasil

    New Products:
    Finish Quantumatic automatic detergent dispenser system, Air Wick Aqua Mist air freshener, Vanish Oxi Action Extra Hygiene, Woolite Complete, Lysol No-Touch hand soap system, Cillit Bang Grime & Lime 4X, Harpic 5X, Clearasil Overnight, Veet Suprem’Essence

    Comments:
    Unlike many other companies in The International Top 30, Reckitt Benckiser (RB) posted a gain in sales last year, as revenues rose 18%—and even on a constant exchange rate, sales were up 8%. The gains were driven by RB’s 17 Powerbrands, which accounted for 70% of the company’s sales last year. Powerbrands include Air Wick, Calgon, Cillit Bang, Clearasil, Dettol, Finish, Gaviscon, Harpic, Lysol, Mortein, Vanish, Veet and Woolite. Brands like these make RB the world leader in surface care, disinfectant cleaners, automatic dishwashing, garment care and water softeners.

    A new powerbrand may be on the way. Late last month, RB acquired condom maker SSL International for nearly $3.9 billion.

    “Could be ominous for Trojan, since rival, Durex, will now be owned by Reckitt-Benckiser which is a much stronger marketer than Church & Dwight. Also, Church & Dwight has never managed to develop any real international capability,” said Colin Hession, Colin Hession Consulting.

    By product category, health and personal care accounts for 26%, followed by fabric care, 22%; surface care, 17%; dishwashing, 11%; home care, 14%; food 3%; and pharmaceutical at less than 1%.

    More specifically, fabric care sales were flat at $2.4 billion. Although Vanish and Woolite provided a boost, these gains were offset by weakness in laundry detergents and fabric conditioners. Surface care sales rose 5% to $2 billion, driven by strong demand for Dettol and Lysol. Dishwashing sales increased 2% to $1.3 billion on the success of Finish Quantum, which was partially offset by weakness in dishwashing additives. Home care sales increased 4% to $1.6 billion thanks to good gains for air care. Health and personal care revenues increased 14% to $3.2 billion.

    By region, Europe accounted for 45% of sales. Sales in the region rose 1% last year. The increase was
    Fast Fact:
    In 2009, Reckitt Benckiser marked its 10th anniversary. The company was formed following the merger of Reckitt & Colman and Benckiser NV.
    due primarily to dishwashing, home care and health and personal care. In dishwashing, Quantum provided a lift, while home care got a boost from Air Wick Freshmatic, Freshmatic Mini and motion. In health and personal care, Nurofen, Strepsils and Gaviscon all performed strongly.

    North America and Australia represented 28% of sales. In this region, sales increased 7%, with growth coming from surface care, home care, health care and personal care. Demand for Lysol spray and disinfecting wipes boosted growth in surface care, while Air Wick Freshmatic and motion contributed to gains in home care.

    Developing markets accounted for 19% of sales and sales rose 16%. Gains were posted in all regions and were driven by fabric care, surface care and health and personal care.

    The gains continued into 2010. First quarter revenues rose 5% to $2.7 billion and net income rose 15% to $482 million. Surface care led the way, with sales increasing 7% to $475 million. Home care sales rose 11% to $407 million, helped along by sales of Air Wick motion, further boosted by the launch of Air Wick Aqua Mist.

    In other news, on May 1, Salvatore Caizzone was named executive vice president of Europe. Prior to that appointment, Caizzone was senior vice president, Africa and Middle East, based in Dubai, which includes all business in Africa, the Middle East and Pakistan.
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