Rexam announces 2014 full year results

Rexam has announced its trading results for the full year 2014. Highlights include:

• Beverage can volumes up 4%
• Underlying organic operating profit up 2%
• Underlying earnings per share up 5%
• Return on capital employed 14.9% (2013: 15.5%)
• Strong free cash flow from continuing operations of £225m
• Final dividend of 11.9p, taking total to 17.7p (up 2%)
• Recommended offer by Ball Corporation announced today of 407p in cash and 0.04568 of a new Ball share, representing in aggregate 628p per Rexam ordinary share

Commenting, Graham Chipchase (pictured), Rexam’s chief executive, says, “In a difficult year, we delivered a good performance. It has been a great team effort in the face of unprecedented rises in metal premiums, the impact of foreign currency translation and some pricing pressure. The annual dividend is up by 2% to 17.7p and we returned £450m to shareholders during 2014 following the sale of our Healthcare business.

“Significant steps have been taken to strengthen our strategic position to better serve our customers and we are now a 100% focused beverage can maker. The acquisition of a majority stake in UAC and our investment in Panama position us well in higher growth geographies.

“We expect 2015 to present a tough trading environment with headwinds from metal premium, foreign exchange volatility and pricing pressure. However, we are taking steps to address these through further improvements in productivity to make sure we are delivering cost leadership and continuing to invest in growth capacity to enhance our strong market positions.”

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