CPMC’s profits driven by beverage cans

CPMC Holdings, a leading manufacturer of beverage cans in China, has announced its financial results for the year ended 31 December 2011.

CPMC is a division of the COFCO Group, which conducts its business through 14 operating subsidiaries and their branches, throughout China.

Sales of beverage cans were the major source of income for the group last year.

The company sold approximately 3,184 million cans, and the income generated was around RMB2,210 million, an increase of 42.1% compared to 2010. This accounted for approximately 50.9% of the overall sales of the group (2010: 45.5%).

The gross profit margin for the metal beverage cans business improved generally in 2011, accounting for 17.6% (2010: 17.3%), an increase of 0.3% compared to the previous year. One of the the main reasons was that the two-piece production line in its Wuhan factory reached the production target rapidly after obtaining certification from key clients in the first quarter of 2011. The company’s two-piece production line in Hangzhou was also running at full gear throughout the year to meet market demands.

In 2012, two production lines for two-piece cans in factories in Chengdu and Tianjin will be in operation. New two-piece can lines in its Hangzhou and Guangzhou factories will start production as well.

Sales of three-piece cans amounted to approximately 1,717 million cans (2010: 1,682 million cans), representing an increase of 2.1% compared to the previous year. The major reason for this increase was to keep up with the changes of the packaging format of its strategic client JDB, who changed from three-piece to two-piece cans.

The integrated metal packaging business of the group includes food cans, aerosol cans, metal caps, printed and coated tinplates, steel barrels and other metal packaging.

In 2011, the sales of the integrated metal packaging business of the group was approximately RMB1,935 million (2010: RMB1,737 million), representing an increase of 11.4% compared to 2010. This accounted for approximately 44.6% of the overall sales (2010: 50.8%). In 2011, gross profit was approximately RMB272 million (2010: RMB230 million), representing an increase of 18.3% over the last year.

As of 31 December 2011, overall sales income of the group was approximately RMB4,342 million (2010: RMB3,417 million), representing an increase of RMB925million or 27.1%.

Profit for the year reached approximately RMB286 million (2010: RMB218 million), representing an increase of 31.2% compared to 2010.

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