Sales: $7.4 billion
Key Personnel: Adrian Bellamy, chairman; Rakesh Kapoor, chief executive officer; Heather Allen, executive vice president, category development; Amedeo Fasano, executive vice president, supply; Roberto Funari, executive vice president, Latin America and Asia; Rob de Groot, area executive vice president, Europe and North America; Adrian Hennah, chief financial officer; Gareth Hill, senior vice president, information services; Frederic Larmuseau, area executive vice president, Russia, Middle East and Africa; 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 Quantum with Power Gel, Veet Naturals hair removal cream, Dettol Radiance soap and body wash, Dettol Healthy kitchen gel, Vanish Gel Treat and Go, Airwick Filter & Fresh Car, Airwick EverFresh Gel.
Comments: Corporate sales and net income rose 4% to $15.4 billion and $2.9 billion, respectively. The positive results are nothing new for Reckitt Benckiser, but the vision statement is: “Our vision is a world where people are healthier and live better. Our purpose is to make a difference by giving people innovative solutions for healthier lives and happier homes.”
No wonder why the company expects health and hygiene sales to account for 72% of sales by 2015 (up from 68% in 2012) and emerging markets to represent 50% of sales by 2015 (up from 44% in 2012). Those concepts dovetail perfectly in the South African dish care market, where a 50% increase in dishwasher penetration since 2008 has propelled sales of Finish.
In June, RB launched a water footprint measurement tool to help people improve their health and hygiene, while conserving water. Company executives said that India is the top priority geographically because it is the country with the biggest impact based on water use, scarcity and the size of the Reckitt Benckiser business there.
“Water is an increasingly critical resource around the world and it is vital to our consumers and our business,” explained CEO Rakesh Kapoor. “Our innovative approach to reducing our water impact demonstrates how our sustainability strategy aligns with the emphasis in our business strategy on health and hygiene and emerging markets. We are determined to grow sustainably, helping people to lead healthier lives, and we made excellent progress in 2012.”
To help RB reach its water target, the company is launching products like Dettol Touch of Foam which is designed so consumers only need to run water to rinse their hands, not to create the lather, saving about 15% of water compared with conventional hand wash products. RB’s sustainability strategy has three targets for 2020: 1/3 net revenue from more sustainable products, 1/3 reduction in water impact across the product lifecycle, 1/3 further reduction in carbon footprint across the product lifecycle.
For the first quarter of 2013, corporate sales rose 7% to $3.8 billion. Hygiene product sales rose 6% to $1.5 billion, helped along by sales of Dettol in Europe and Lysol in the US.
In a review of 2012, sales in North America and Europe rose 1% to nearly $7.6 billion. The company noted that conditions in Europe remained difficult, but hygiene brands like Dettol, Lysol and Finish performed well, thanks to strong demand for Dettol No-Touch in Europe and Finish Quantum and All-in-1 gel packs and tablets in the US. The introduction of Air Wick Filter & Fresh and Black Edition candles provided a lift in the second half too.
Sales in Latin America, North and Southeast Asia, Australia and New Zealand were up 11% to $3.7 billion, driven by the growth of Dettol Daily Care and Re-energize and Harpic Power Plus.
Sales in Russia, Commonwealth of Independent States, Middle East, North Africa, Turkey and sub-Saharan Africa rose 8% to $2.2 billion. The company credited demand for Dettol, Finish, Harpic, Air Wick and Veet.