The Veet hair removal system for hairy gorillas is flying off the shelf.

This surely has to be a buy? DYOR

http://www.reckittbenckiser.com/

Reckitt Benckiser revenue up 7% in Q3
Business Financial Newswire
Household and personal goods group Reckitt Benckiser raised its targets for the full year after revealing third-quarter revenue growth of 7% at constant exchange, driven by growth in the group's 17 Powerbrands.

Turnover was 1.91bn for the quarter and 5.69bn for the year to date.

The group reported a quarterly operating profit of 467m, up 10% at constant currency, and year-to-date profit of 1.29bn, up 12%.

Adjusted Q3 EPS was 49.6p, up 26%, and 134.4p for the first nine months, up 30%.

Adjusted operating margin rose by 130bp to 22.6%.

Net debt fell to 423m from the 31 December figure of 1,096m as a result of strong free cash flow generation, partially offset by the payment of two dividends totalling 648m.

Chief executive Bart Bech said Reckitt Benckiser continued to see good momentum. 'This result was supported by our 17 Powerbrands, behind significant investment in media and marketing and successful new product initiatives.'

The group was raising its full-year target for net revenue growth to 6-7% at constant exchange, previously 5-6%. Its adjusted net income growth target was being to 12-13% at constant exchange (previously 10-11%).

New high.

Final Results.

FY highlights:

Total net revenue +8% (constant exchange), driven by growth in the Group's 17
Powerbrands. Excluding Reckitt Benckiser Pharmaceuticals ("RBP"), net revenue
was ahead +6% (at constant).

Gross margin +90bp to 60.2%: adjusted operating margin +100bp to 24.4%.

Adjusted net income +24% (actual exchange): adjusted diluted EPS of 194.7p
(+23%).

Net cash of 220m (2008: net debt of 1,096m), as a result of ongoing strong
free cash flow generation.

Net working capital of minus 1,257m, a 160m improvement versus the 31
December 2008 level.

The Board recommends a +19% increase in the final dividend to 57.0p per share,
bringing the total dividend for 2009 to 100.0p (+25% versus 2008).

Q4 highlights:

Total net revenue growth of +10% (constant exchange), +6% ex-RBP.

Gross margin +100bp to 62.3%: adjusted operating margin +50bp to 29.3%.

Adjusted net income +14% (actual exchange): adjusted diluted EPS of 60.3p
(+10%).

Dividends. The Board of Directors recommends a final dividend of 57.0 pence
(2008: 48.0 pence), an increase of +19%, to give a full year dividend of 100.0
pence (2008: 80.0 pence), an overall increase of +25%. The dividend, if
approved by shareholders at the AGM on 6 May 2010, will be paid on 27 May to
shareholders on the register at the record date of 26 February. The ex-dividend
date is 24 February and the last date for election for the share alternative to
the dividend is 6 May. The final dividend will be accrued once approved by
shareholders.

New high again today!

OFT ISSUES STATEMENT OF OBJECTIONS FOR ALLEGED ABUSE OF A DOMINANT POSITION BY RECKITT BENCKISER

The OFT has today issued a Statement of Objections alleging that Reckitt Benckiser abused its dominant position in the market for the NHS supply of alginate and antacid heartburn medicines.

The OFT alleges that Reckitt Benckiser sought to restrict competition to its Gaviscon brand by withdrawing and de-listing its NHS packs of Gaviscon Original Liquid from the NHS prescription channel.

10 years v the FTSE.

These have been off my list for a while - nearly 10% fall this week.

RB buy Durex.

Summary of the Offer

The boards of Reckitt Benckiser Group plc ("Reckitt Benckiser") and SSL International plc ("SSL") are pleased to announce that they have reached agreement on the terms of a recommended cash offer to be made by Reckitt Benckiser plc, a wholly-owned subsidiary of Reckitt Benckiser, to acquire the entire issued and to be issued share capital of SSL (the "Offer").

SSL is a focused consumer products company with leading global brands such as Durex and Scholl, as well as a portfolio of local brands.

Reckitt Benckiser is a world leader in household and health & personal care. The acquisition of SSL provides Reckitt Benckiser with an attractive opportunity to increase its presence in the health & personal care sector.

Under the terms of the Offer, SSL Shareholders will be entitled to receive 1163 pence in cash per SSL Share (the "Offer Price") and will also remain entitled to receive the proposed final dividend of 8 pence per share in respect of the year ended 31 March 2010 (the "SSL Dividend"), representing, in aggregate, 1171 pence per SSL Share.

The Offer Price plus the SSL Dividend values SSL's fully diluted share capital at approximately 2,540 million.

The Offer provides SSL Shareholders with a compelling opportunity to realise full value up front for their investment in SSL in cash.

The Offer Price plus the SSL Dividend represents:

o a premium of approximately 32.8 per cent. to the closing price of 882 pence per SSL Share on 20 July 2010, being the last business day prior to the Announcement Date;

o a premium of approximately 39.3 per cent. to the average closing price of approximately 840.7 pence per SSL Share for the one month period to 20 July 2010; and

o a premium of approximately 44.7 per cent. to the average closing price of approximately 809.3 pence per SSL Share for the six month period to 20 July 2010.

Reckitt Benckiser: Chief Financial Officer Colin Day To Leave
Reckitt Benckiser (LSE:RB.)
Intraday Stock Chart
Today : Friday 22 October 2010
Reckitt Benckiser Group PLC (RB.LN), said Friday that Colin Day, chief financial officer and executive member of the board will leave the company.

MAIN FACTS:

-His successor will be announced in the next few months.

-To ensure a smooth transition and an effective handover Colin Day will remain with the business until end of March 2011.

Just gone long @3154.

Just closed these @3387 +233.

Nice skinny!

Took my eye off the ball here - showing some recent strength - no doubt a bid rumour will surface!

Household goods and healthcare products conglomerate Reckitt Benckiser continued to attract buyers, adding 52p at 3,540p, as bid rumours persisted, with Unilever in the frame. Unilever shares dipped 2p at 2,035p in response.

About par for the course!

From the Guardian
Reckitt Benckiser, the maker of Cillit Bang and Dettol, was the day's speculative tale, up 35p to 34.88 on renewed talk of a possible offer for the company at around 50 a share. The supposed predator was Unilever, 25p higher at 20.37, with traders suggesting the Anglo-Dutch group could sell on any unwanted Reckitt brands to US rival Colgate-Palmolive. The timing would be interesting - Reckitt's long standing chief executive Bart Becht is due to step down in September.

Reckitt Benckiser, the maker of Cillit Bang and Dettol, gave support to the market following speculation that Unilever and Proctor & Gamble were circling the company for a takeover bid. Shares were ahead 61p at 3549p.

Read more: http://www.thisismoney.co.uk/money/markets/article-2011365/FTSE-LIVE-Services-provides-boost-Reckitt-climbs-Unilever-bid-talk.html#ixzz1RFDXvajK

I've updated post 22 to show volume.

From FT.com/Alphaville - Neil Hume
Depending on which publication you read this morning, Reckitt was either going to be acquired by either Proctor & Gamble or Unilever for anything between 40-50 a share (curiously round numbers arent they? Ed.)

Now, one should never say never, but a bid from either company looks to be a long shot, says the sectors top-rated analyst, Andrew D Wood of Sanford Bernstein:

Given the sustained speculation of a potential bid for RB, I thought it might be worthwhile re-distributing this report we published in April. It primarily looks at potential anti-trust issues for the usual suspects (P&G, Unilever, Colgate), but we also make comments on the potential for acquisition as well. In particular I would highlight the following extract from the report:

Our [anti-trust] analysis is not definitive, and clearly could be addressed by joint bids or bids where the bidder is prepared to accept significant remedies in order to get the deal donebut it does suggest that any hope that RB could be subject to aggressive pursuit from P&G are slim. Unilever could probably pursue RB, but we believe that the business is still in turnaround show me mode under a fairly new CEO, and an aggressive pursuit of a 29bn (32bn, $47bn) acquisition, assuming an acquisition price of 40, would not get the support of the board or investors. RB is also probably too big for Colgate to swallowbut a merger of equals could be considered, and anti-trust issues would not preclude the deal.

Hmm, a merger with Colgate. That has also been rumoured and its said to be the real reason behind Bart Bechts surprise departure from Reckitt. He was pushing for a transformational merger and the board blocked him.

And its certainly a goer.

Colgate would have only minor issuesmostly limited to surface care from a category perspective and Greece and Australia from a country perspective. We estimate that only 3% of RBs sales in the EU would be at high risk or risk of anti-trust issues, and only 6% of sales globally. Once again, anti-trust remedies would probably not preclude a deal.

As opposed to bid from P&G

P&G would find it difficult to get a deal done. We see significant anti-trust issues in a number of important categories (Surface Care, Auto Dishwash, Laundry Aids and Depilatories) in a number of countries (US, Canada, most of the EU). We estimate that 44% of RBs sales in the EU would be at high risk or risk of anti-trust issues, and 31% of sales globally. We conclude that required anti-trust remedies would probably block a deal.

Wood reckons the real reason Reckitt has rallied today is a growing appreciation of its fundamentals - steadily improving core markets and sales growth as 2011 progresses , good news and more bullish guidance on the Pharma business (especially the transfer from Suboxone Tablets to Film) and strong success with the integration of Durex condom maker SSL.

Whilst I do trade RB, I've gone long ULVR. It has been in a recent uptrend which stalled today. I'm hoping that if the bid comes to nothing, there may be some upside with ULVR.