1 reckitt benckiser a business case study carlingford high school

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Reckitt Benckiser

A Business Case Study

Carlingford High School

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Reckitt Benckiser - Business Case StudyCarlingford High School

• Annual Report• Comparison Ratios and

Competitors• Finance Team in RB ANZ• A bit about us

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643

1196

2032

DevelopingMarkets

North America

Eurpoe

+9%

+8%

+16%

Our Business• Reckitt Benckiser is the world leader in Household Cleaning (excl laundry) • Our passion is to improve peoples lives when they use our products• RB sells its products in some 180 countries and has operations in 60 countries.

About Reckitt Benckiser

Net Revenue - £ million

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Surface Care20%

Fabric Care28%

Dishwashing14%

Home Care15%

Health & Personal Care15%

Other8%

Our Categories - % Share of 2004 Net Revenue

No. 1 Worldwide in disinfectants & lavatory care

No. 1 Worldwide in Fabric Treatment & Water softeners No. 1 Worldwide in

Auto Dishwashing detergent

No. 2 Worldwide in Air Care, Shoe Care & Pest Control

Veet is worldwide leader in Depilatories

% Share

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Annual Report

Chairman’s Statement

Chief Executive’s

Review

Corporate Business Review

Board of Directors

Report of the Directors

Financial Statements

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Chairman's Statement


Chief Executive’s

Review


Board of Directors



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CEO Review


Chief Executive’s

Review


Board of Directors



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Chief Executive’s

Review


Board of Directors



To date we’ve launched Rasera in all Veet’s developed markets - and we’re now using it to spearhead the brand’s entry into new ones.

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Chief Executive’s

Review


Board of Directors



Year after year, our Squeeze programme finds ways to save upwards of £30m annually - with over 600 Squeeze projects on the go at any time.

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Chief Executive’s

Review


Board of Directors



Thanks to Vanish, now in some 50 countries worldwide, we’re the global leader in stain removal

Marketed in Australia under Napisan/Preen Brand

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Board Of Directors


Chief Executive’s

Review


Board of Directors



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Chief Executive’s

Review


Board of Directors



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Annual Report


Chief Executive’s

Review


Board of Directors



Profit & LossBalance Sheet

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Profit & Loss Statement


Profit & Loss

Balance Sheet

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Profit and Loss Statement

£’million’s• Raw Materials• Packaging• Labour • Depreciation

• R&D• Marketing• Other Overheads

• Also known as Gross Margin

• Gross Sales minus Trade Spend

3,871 1,750

2,121 1,362

759

-

759 770184

586

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NetRevenue

Cost ofsales

Gross Profit NetOperatingExpenses

OperatingProfit

NonOperating

Items

PBIT Interestincome

PBT Taxes Net Profit

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Balance Sheet


Profit & Loss

Balance Sheet

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Fixed Assets2,133

Current Assets1,709

Non-current Liabilities

647

Current Liabilities1,519

Equity1,676

Assets Liabilities Equity

Balance Sheet

£’million’s • Creditors• Borrowings• Conv Capital Bonds

• Creditors• Borrowings

• Intangible Assets• Tangible Assets

• Stocks• Debtors• Investments• Cash

• Share Capital• Retained Earnings

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Comparison Ratios

Why use ratios?• Understand business trends over time• Used as ‘key performance indicator’ to measure business performance• Understand where problems exist - and how to fix them• Drive accountability• Benchmark against competitors

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Comparison Ratios

Profit & Loss Ratios– Net Revenue Growth– Gross Profit % of Net Revenue– Operating Profit Growth– Operating % of Net Revenue

Balance Sheet Ratios– Debt to Equity– Current Asset to Current Liabilities

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3,871 1,750

2,121 1,362

759

-

759 770184

586

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NetRevenue

Cost ofsales

Gross Profit NetOperatingExpenses

OperatingProfit

NonOperating

Items

PBIT Interestincome

PBT Taxes Net Profit

Profit and Loss Ratios

£’million’s• Gross Profit % of Net Revenue:2004 = 55%2003 = 53%

• Net Revenue Growth:Growth of 4% on 2003

• Operating Profit % of Net Revenue:2004 = 20%2003 = 18%

• Operating Profit Growth:Growth of 12% on 2003

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Fixed Assets2,133

Current Assets1,709

Non-current Liabilities

647

Current Liabilities1,519

Equity1,676

Assets Liabilities Equity

Balance Sheet ratios

£’million’s• Creditors• Borrowings £82• Conv Capital Bonds £40

• Creditors• Borrowings £118

• Current Asset / Current Liabilities2004 = 1709 / 1519 = 1.132003 = 1.08

Total Debt = 82+40+118 = 240

• Debt to Equity2004 = 240 / 1676 = 14%2003 = 33%

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Comparison Ratios

Profit & Loss Ratios– Net Revenue Growth– Gross Profit % of Net Revenue– Operating Profit Growth– Operating % of Net Revenue

Balance Sheet Ratios– Debt to Equity– Current Asset to Current Liabilities

We can analyse our competitors using Ratio Analysis

Our competitors include:

SC Johnson

Unilever

Sara Lee

Clorox

Proctor & Gamble

Colgate

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Treasury

Global Treasury manages three main risks:• Translation Risk

– Financial statements reported in £’s but business conducted in other currencies

– Managed through currency swaps• Transaction Risk

– Purchases of Goods & Services and receipts from customers in other currencies

– Managed through derivatives• Interest Rate Risk

– 65% of financial liabilities at fixed interest rates

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Finance Charter

“The purpose of finance is to be a business partner that adds value to the organisation”

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Reckitt Benkiser - AN ZRegional Finance Organisation

F in a nc ia l A cc tn tG re g M o n tgo m e ry

A cc tn ts A d m in is tra to rK im A bb o tt

F in a nc ia l A cc tg M a na g erA lfred A u

A cc tn ts R e c C le rkG a il Th o m p son

A cc tn ts R e c C le rkE liza b e th C a irns

A cc tn ts R e c S u p erv iso rD ia n e B e ile ite r

A cc tn ts P a ya b le C le rkM e lis sa S to ne

A cc tn ts P a ya b le C le rkM a ry Ta sh m an

A cc tn ts P aya b le S u p erv iso rC o rinn e P arso ns

F in a n c ia l C o n tro lle rP e te r B ryd en

S u p p ly C ha in A n a lystD is trib u tion an d O ve rhe a ds

A d a m B ro w n

S u p p ly C ha in A n a lystH o u seh o ld Fa c to ry

A h m ed H assan

S u p p ly C ha in A n a lystA e ro so l a nd W th P ark F ac to ry

B ria n G ord on

S u p p ly C o n tro lle rIa n D en ga te

B u s ine ss A n a lystK e e rti S ha rm a

S e n io r C o m m A cc tn tK a re n D o re vsk i (P \T)

C o m m e rcia l A cc tn tF a d ia A g h a (P \T)

C o m m e rc ia l C o n tro lle rS tep he n Y ou ng

F in a n ce D ire c to r - N ZU lrich H os te rb a ch

R e g io na l F ina n ce D ire c to rJo h n H B re nn an

OrganisationChart

• Preparation of Monthly Results to HO• General Ledger Maintenance• Fixed Assets• Taxation• Insurance• Bank Accounts & Treasury Liaison

• Preparation of Factory Budgets & Forecasts• Monthly Factory Reporting• COGS Information for NPD• Standard Cost Maintenance• Inventory Management

• Sales & Pricing Analysis• Marketing Commercial Analysis• Monthly Overheads Reports• New Product Development analysis• Planning & forecasting

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Any Questions ?

1 reckitt benckiser a business case study carlingford high school

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