annual report and financial statements 2017

Healthier Lives,
Happier Homes

Bringing Our Purpose to Life






Our purpose is to make a difference by giving people innovative solutions for healthier lives and happier homes.

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Chief Executive's Statement

Our strategic moves during 2017 position the Group extremely well for the future.

This was a hugely important year for RB, as we made real progress towards our purpose of healthier lives and happier homes.

Rakesh Kapoor Chief Executive Officer Download the full statement

Our business model

  • We're using our strengths
  • To power our business
  • And pursue our purpose
  • So we drive outperformance
  • We are using our strengths
  • To power our business
  • And pursue our purpose
  • So we drive outperformance
We're using our strengths.

Strategic inputs

Our people & culture

We employ outstanding people, who work in a unique culture that harnesses their passion and allows them to make a real difference

Our brands

We have 20 Powerbrands, which are leaders in their markets and offer faster growth and higher margins

Our knowledge and skills

We have deep consumer understanding, proven R&D capabilities and an agile organisation, which gets products to market fast

Our relationships

We develop strong, value-creating relationships with customers, consumers, suppliers and communities

Our infrastructure

Our business is underpinned by well-invested manufacturing sites, R&D laboratories and logistics centres

Our financial strength

Shareholders’ equity, debt and retained profit give us the financial resources to implement our strategy

To power our business

Our operating segments

In 2017, RB was organised into three operating segments – Europe and North America (ENA), Developing Markets (DvM) and Infant and Child Nutrition (IFCN).


Europe (including Russia/CIS and Israel), North America and Australia/New Zealand

Net Revenue £6.7bn


Africa, Middle East (excluding Israel), Turkey, Asia (excluding Russia/CIS) and Latin America

Net Revenue £3.3bn


IFCN is the acquired MJN business, which includes the world’s leading franchise in infant and children’s nutrition

Net Revenue (pro-forma)1 £2.9bn
1 Refer to page 39 of the Annual Report for basis of preparation

Our categories


Nourishing the best start to life with the IFCN business, and treatments for everyday issues such as pain and flu, wellness products covering sexual wellbeing, footcare, vitamins and supplements


Personal and home hygiene products, which provide the foundation for healthy living


Brands that make the home environment more harmonious and less stressful, so families are happier every day

Reorganising for growth

From Q1 2018, RB is developing a platform for future growth and outperformance by creating two focused, fully accountable and more agile business units - Health and Hygiene Home.

And pursue our purpose

Our purpose is to make a difference, by giving people innovative solutions for healthier lives and happier homes


Powerful long-term trends are influencing our markets and driving demand for our products, from longer lives and increasing incomes to the relentless rise of technology and e-commerce.

Our strategy

We have designed our strategy to respond to these trends and deliver long-term success.


How we outperform, through our focus on our brands, markets, people and creating a digitally connected company


How we support our communities and drive quality and safety in all we do


How we reduce our environmental impact and ensure we source materials responsibly

Our operating model

Our three-part model enables us to rapidly scale up our ideas and offer them to consumers worldwide.


Create innovative products that meet consumers' under-served demands


Scale our innovations, to make them as global as possible


Activate our ideas through our customer relationships, while driving consumer demand through offline and digital channels

Our values

Our values help us to realise our vision and purpose and are key to our distinct culture.

So we drive outperformance

Our strategy and operating model create value for all our stakeholders.




challenging careers

RB provides exciting and challenging careers, with excellent rewards for outstanding performance




market-leading Powerbrands

Consumers receive innovative, safe and high-quality products, which give them healthier lives and happier homes




Total Shareholder Return since adoption of new strategy in 2012

Shareholders benefit from strong operational and financial performance, resulting in attractive returns via dividends and long-term share price appreciation




people reached with health and hygiene messaging

Our products and social programmes lead to improved health and hygiene standards



Bricks and mortar and e-commerce

Customers gain from selling our leading brands, which grow each category and drive customer value in relevant channels

Key performance indicators


Net Revenue generated in our DvM area, as a percentage of total Net Revenue 33% 1 Target to 2020:



We have 16 Powermarkets. These are the markets which have the highest absolute growth potential for us and where we see the greatest ability to win. They are weighted towards developing markets which have greater economic growth, rising middle classes and more opportunities to increase market penetration.

1 As a percentage of RB base business
Health and Hygiene (pre-RB 2.0)
Net Revenue generated by our Health and Hygiene categories, as a percentage of total Net Revenue 79% 1 Target to 2020:



We invest heavily in our portfolio of 20 market-leading Powerbrands. They provide over 80% of our revenue and offer higher growth and margins.

1 As a percentage of RB base business
Organisation and culture
Like-for-like Net Revenue growth

Growth in Net Revenue, excluding the impact of changes in exchange rates, acquisitions and disposals

  Health Hygiene Home
Category growth
3 - 5% 2 - 3%
Ambition Upper end In line to upper end
Gender diversity

Females in Top 400

24% Target:

Expand our focus on diversity and talent by improving the retention rates of women from managers to senior managers. This is in line with out goal of doubling the number of women in senior management roles from a 2016 base line


Our people are what make us outperform. Respecting them, keeping them safe and developing their skills and careers is essential if we are to be successful. We recognise and embrace the value that a diverse, engaged and motivated workforce can bring.

Lost Work Day Accident Rate (LWDAR)
Number of incidents resulting in at least one lost day of work per 100,000 hours worked 0.121 Target:

Continued decrease of rate


Definition: Number of incidents resulting in at least one lost day of work per 100,000 hours worked.

Increase in our LWDAR since 2012: 13%*

*We have revised the classification of our Lost Work Day Accident Rate (LWDAR) from 2017 to include accidents associated with organised travel and commercial offices. Excluding accidents from organised travel and commercial offices, there has been a 36% reduction in LWDAR since 2012.


Purpose-led brands
Total number of people reached with health and hygiene messaging and campaigns 568m Target to 2020:



Improving health and hygiene through our products, brand educational programmes and corporate social investment.

Social impact investment
Direct contributions made as social impact investment £10.5m Target:

Continual increase in social impact investment


We recognise the role we must play in making a positive impact and transforming the health and lives of communities around the world. Our social impact investment strategy focuses on three areas that have a direct connection with our business: sexual health and rights, malnutrition and stunting, and health and hygiene.

Note: 2017 includes broader social impact investment and brand contributions
Product innovation
Total Net Revenue from more sustainable products 19.4%1 Target to 2020:

33% of Net Revenue


Designing and launching more sustainable products.

1 As a percentage of RB base business


Greenhouse gas emissions
The percentage reduction in GHG emissions per unit of production, against our 2012 baseline. (31)% Target to 2020:

40% reduction


Reducing our GHG emissions in our operations and across our product lifecycle, through energy efficiency programmes, investing in renewable technologies and procuring electricity from renewable sources, and product innovation.

Carbon footprint per dose of product

The percentage reduction in our total carbon footprint per dose of product manufactured, against our 2012 baseline.

(2)% Target to 2020:

33% reduction


Reducing carbon footprint per dose of product remains challenging

Water use per unit of production

The percentage reduction in total water consumption per unit of production, against our 2012 baseline

(37)% Target to 2020:

35% reduction

Water impact per dose of product

Total water used during the product’s life cycle, from material sourcing to disposal or recycling, adjusted to reflect water scarcity at each stage, and divided by the number of product doses manufactured

(8)% Target to 2020:

33% reduction


Reducing the water impacts of our products throughout their lifecycle, including reducing water use in our manufacturing operations, especially in water-scarce regions.

Factories sending waste to landfill

The percentage of our factories achieving zero waste to landfill, including both hazardous and non-hazardous waste

100% Target to 2020:


Manufacturing waste per unit of production

The percentage reduction in manufacturing waste per unit of production, against our 2012 baseline

(21)% Target to 2020:

30% reduction


Reducing our manufacturing waste and ensuring zero manufacturing waste is sent to landfill.