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Reckitt Benckiser FY Profit Drops

UK Consumer goods giant Reckitt Benckiser plc (RBGLY,RB.L) reported that its net income attributable to owners of the parent for fiscal year 2018 was 2.16 billion pounds, a decrease of 65% report basis or 63% constant exchange basis from the prior year.

The decline was due to exceptional items in 2017 in relation to the profit on sale of the RB Food business of 3.02 billion pounds, a tax credit relating to the effect of US Tax Reform of 1.42 billion pounds and a charge of 296 million pounds in respect of ongoing investigations by the US Department of Justice. On an adjusted basis, total net income was 2.410 billion pounds, up 4% or 9% constant compared to 2017.

Total full year net revenue was 12.597 billion pounds, with growth of 3% on both a pro-forma and LFL basis. Growth was balanced with relatively equal contributions from volume and price mix. The impact of consolidating MJN business for a full 12 months in 2018 added +12% to growth.

The Board of Directors recommended a final dividend of 100.2 pence (2017: 97.7 pence), to give a full year dividend of 170.7 pence (2017: 164.3 pence). The dividend, if approved by shareholders at the AGM on 9 May 2019, will be paid on 23 May 2019 to shareholders on the register at the record date of 23 April 2019. The ex-dividend date is 18 April 2019. The final dividend will be accrued once approved by Shareholders.

For 2019, the company targets LFL net revenue growth of +3-4%; expects to maintain adjusted operating margin as we generate our usual RB cost and efficiency savings, and deploy them into building two even stronger businesses.

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