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    Top Companies Report

    5. Reckitt Benckiser

    ...

    08.03.15
    United Kingdom
    www.rb.com
    Sales: $6.6 billion
     
    Key Personnel: Rakesh Kapoor, chief executive officer; Adrian Hennah, chief financial officer; Amedeo Fasano, executive vice president, supply; Roberto Funari, executive vice president, category development; Rob de Groot, area executive vice president, ENA; Frederic Larmuseau, area executive vice president, developing markets; Darrell Stein, senior vice president, information systems; Deborah Yates, 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 and Clearasil.

    New Products: Finish Shine & Protect with Glass Protect Action, Dettol proFresh Body Wash, Veet Spawax, Mortein Activ Card, Air Wick Life Scents, Vanish Gold and Gold for Whites.

    Comments: Clean is the focus at RB these days, as the company spun off its pharma unit to focus on personal health (such as OTC products) hygiene and home care. But currency fluctuations forced corporate sales down 4% to nearly $10.8  billion. Sales of hygiene products, dropped 5% to $4.4 billion and home care sales fell 8% to $2.2 billion.

    On a like-for-like basis, hygiene sales rose 3% and accounted for 43% of corporate sales. RB points out it is the No. 1 player in the global surface care category with leading positions across disinfectant cleaners, multipurpose cleaners, lavatory care and specialty cleaners. Lysol is the No. 1 brand in North America and Dettol is the No. 1 brand outside North America.

    Sales of home care products, which accounted for 21% of sales, rose 1% like-for-like. Calgon is the No. 1 water softener brand, Woolite is No. 2 in garment care and Air Wick is No. 2 in air care. RB calls Vanish, “the undisputed world leader in fabric treatment;” whatever that means.

    In December, RB demerged its pharmaceutical business to focus on being a global leader in the health, hygiene and home categories. The pharma business, now known as Indivior, trades on the London Stock Exchange as an independent company.
    Earlier this year, RB launched Project Supercharge, a program designed to restructure operations and prune costs to deal with slowing sales across markets. This will include less travel by executives, manufacturing rationalization and even reduced use of office stationery. The company expects Project Supercharge will drive margin expansion and cost savings of £100-150 million in 2015.

    For the first quarter of 2015, sales rose 1% on a reported basis to about $3.4 billion (sales were up 5% like-for-like). Hygiene sales rose 1% as reported to $1.4 billion million, but home care sales fell 7% to $645 million.

    “Our focused strategy is paying off and has delivered a good Q1 against a backdrop of stable developed markets and mixed emerging markets,” said Rakesh Kapoor, chief executive officer. “A strong and broad-based performance from our Consumer Health brands continues to deliver growth and outperformance, aided by a strong flu season. In Hygiene, Dettol, Lysol and Harpic performed well offset elsewhere by tough market conditions.”

    Kapoor went on to say that Project Supercharge has been fully embraced by the organization creating a more efficient and effective RB, and will deliver sustainable cost savings. 
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