Global bevcan volumes grow 6% at Rexam

Rexam, one of the world’s top three beverage canmaking firms, revealed that it produced 6 percent more cans in 2012, driven by growth in speciality sizes and a recovery of market share in the US, when its year-end results were announced this morning.

 

Sales at the London-based canmaker were up 1.9 percent year-on-year at £4.31 billion (US$6.6bn). Rexam said that while its underlying profit before tax was up by 1 percent at £418m ($640m), net profit was down to £214m ($328m) from £376m ($576m) in 2011.

 

Ninety percent of Rexam’s business is in beverage can manufacturing following the sale of its Personal Care business last year. Its global manufacturing capacity is between 55 and 60 billion cans a year.

Rexam’s chief executive Graham Chipchase said: “In 2012, we made further encouraging progress. Beverage Cans traded well driven by the global growth in specialty cans and a strong recovery in our market share in the US. We saw good growth in all our regions with volumes up 6 percent and organic operating profit increasing by 5 percent. We are continuing to invest in new lines and capacity to support our future growth. However, as previously highlighted, Healthcare had a difficult year largely due to one of our customer’s products coming off patent.

“Following the sale of the Personal Care business, £395 million is being returned to shareholders, and we have raised the total dividend for the year by 6 percent.

“We expect to make further progress in 2013 despite an uncertain macroeconomic environment and continued cost pressures. Further contractual gains in North America and continued growth in our European and South American beverage can businesses give us confidence we will achieve our 15 percent ROCE target.”