Rexam’s encouraging half year underpinned by beverage cans

Multinational consumer packaging company Rexam has announced its results for the first half of 2012.

Underlying profit before tax (including the personal care division which Rexam intends to sell) was £225m. The healthcare division’s underlying operating profit was down from £36m to £27m.

Total beverage can volume was up 6%, producing an operating profit for this division up by 9%.

Graham Chipchase, Rexam's chief executive, says: “We are encouraged by progress in the first half and, despite a challenging trading environment, our overall performance was in line with expectations.

“Beverage cans traded well with the global growth of speciality cans and the performance of the North American business overcoming cost headwinds. As indicated previously, we had some specific challenges in healthcare.

“With the proposed sale of the personal care business, we intend to return around £370m to shareholders on completion.

“In an increasingly uncertain macroeconomic environment, we will continue to focus on generating cash, managing costs and return on capital employed for the rest of 2012. Our progress to date gives us confidence in meeting our target of 15% return on capital employed by the end of 2013.”

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