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Reckitt Benckiser Exceeds 2011 Financial Targets, Announces New Growth Strategy

Posted: February 9, 2012

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Outlining the strategy, Rakesh Kapoor, RB CEO, said, “RB has delivered a decade of superior growth and shareholder value. However, with slower market growth and increased competition, we need to reshape our strategy to enable us to continue our track record of outperformance. We believe we can make a real difference by giving people innovative solutions for healthier lives and happier homes. We will therefore be intensifying our investment behind our brands in the higher growth, higher margin categories of health and hygiene. In addition to our highly successful “power brand” strategy, we have identified 16 “power markets” for increased focus and investment, most of which are in emerging markets. This new category and geographic focus will be driven by a new organization structure. We are creating two new area organizations in emerging markets, instead of one. Additionally, we will merge the European and North American area organizations to form one area. This will enable us to increase the speed, quality and consistency of our in-market execution and to drive cost savings. RB’s relentless focus on building brands will continue. We will be increasing our investments in high rates of innovation and brand equity building. We aim to deliver steady operating margin expansion. We will continue to be highly effective at converting profit into cash. I have set three medium-term key performance indicators to monitor our progress on our strategy. I firmly believe that our strong company culture of outperformance, entrepreneurship and innovation will enable us to fulfill the enormous potential of our brands and deliver on our vision and reshaped business strategy.”

More information on this new strategy and its implementation can be found here.