Rexam reports record year for profit

By Andrew McDougall

- Last updated on GMT

Related tags: Personal care

Packaging firm Rexam has announced better than expected underlying profit for 2010, and expects further growth in 2011.

Profit before tax and exceptional items were £412m (€484m) which was up 45 per cent on last years profits of £285m.

Operating profit was up 20 per cent on last year at £535m, whilst there was also a slight increase in total sales which were £4.96bn, compared to £4.87bn the previous year.

Graham Chipchase, Rexam’s chief executive, said: "In 2010 we delivered record profits and cash flow, improved ROCE​ [return on capital employed] and significantly strengthened our balance sheet.”

Personal care growth

The UK-headquartered company’s plastic packaging business recorded an increase in sales of 4 per cent.

Personal Care in particular, aided this sector growth, as sales grew by 7 per cent. A company spokesperson told CosmeticsDesign-Europe.com that despite a drop in the US, dispensing systems were performing well.

According to the source: “strong growth in dispensing systems due to restocking and new product launches, was offset by weak demand in North America in both Make Up and Home and Personal Care.”

Looking Ahead

Looking forward, Rexam has highlighted that maintaining its personal care business as its cyclical recovery continues is key, and it is looking at emerging markets as a strong focus.

It will be expanding its personal care operations and capabilities in Mexico, Brazil and China, whilst developing new customer relationships in the Andean countries.

Another focus is to expand its manufacturing capabilities in Indonesia for the export and domestic market.

"Going forward, we will remain focused on increasing our return on capital, optimising cash and controlling costs, while making disciplined investments to improve our growth and returns over time. We expect 2011 to be a year of continued progress,"​ Chipchase added.

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