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Rexam shows ‘strong profit growth and improved returns’
Rexam, the global consumer packaging company, has delivered its results for the six months to 30 June 2010.
Highlights
- Organic sales up 2% as volumes begin to recover
- Organic operating profit up 25%
- Strong free cash flow of £130m
- Return on capital improved to 12%
- Beverage cans volume growth of 2% driven by strong recovery in specialty cans
- Plastic Packaging performance in line with expectations
- Interim 2010 dividend of 4.0p.
Commenting on the 2010 half-year results, Graham Chipchase, Rexam’s chief executive, said: “We’re pleased with our performance in the first half. There has been some volume recovery as well as pricing improvement. Our relentless cost control has driven strong profit growth. Tight management of capital expenditure and working capital has yielded good cash flow, and our return on capital has improved significantly.
“In most of our businesses, the trading environment is stabilising and the outlook for beverage cans has improved since the start of the year. However, uncertainty persists about the global economic outlook and visibility remains low.
“We expect our results in the second half of the year to be similar to those of the first. We’re confident that our focus on the fundamentals of cash, costs and return on capital will continue to strengthen our business and improve shareholder value.”
Source: Rexam
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