Rexam’s profits driven by beverage cans

A strong performance in the beverage cans sector helped Rexam record strong results for 2011.

Beverage cans underlying profit was up by 13%. The company recorded overall sales of £4,734 million, up 2% on 2010 (£4,619m).

In an interview with CanTech International last year Rexam chief executive Graham Chipchase (pictured) said it was important that the company concentrated on cash, costs and capital return.  This continues to be the focus.

He said: “We are delighted with the continued progress of the business in 2011. Our strong profit growth was achieved by a better than expected performance in our beverage cans business, primarily in Europe, and a continued focus on cost management.

“Looking ahead, we remain cautious about the global economy and, as previously indicated, we face certain cost challenges in 2012 together with the impact of a key healthcare product coming off patent. The volume environment for beverage cans remains robust, although we do not anticipate any turnaround in the performance of plastic packaging in the near term. Overall, we expect 2012 to be another year of progress as we continue to focus on cash, costs and return on capital employed.”

Statutory results

2011

2010

Sales (£m) 4,734 4,619
Profit before tax (£m) 431 338
Total profit for the year (£m) 376 124
Total basic earnings per share (pence) 43.1 14.2

 

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