The company provides plastic packaging to the cosmetics industy, whilst claiming to be the world's leading beverage can maker

The company reported sales at ongoing operations were up 17 per cent in the year to 31 December.

The boost was led by strong market share gains in the US. The company also reported continuing strong market demand in Europe and South America.

However the company's profit growth was offset by what it called an "unprecedented" growth in input costs, especially in the price of aluminium and energy.

In a bid to keep costs down, Rexam reported it had made savings of £32m through a programme to make its operations more efficient.

Rolf Börjesson, Rexam's chairman, said the company's sustained profit growth over the past few years had been hurt by input costs.

"In 2007 we will deliver price increases, a more favourable product mix in beverage cans and good organic profit growth in plastic packaging," he said. "However, the pressure of the continuing high aluminium and other input costs, together with a weaker US dollar, are likely to counteract any progress in 2007, with the impact of the input costs expected to be most severe in the earlier part of the year."

The group plans to make "significant" capital investments in plants, processes and management to underpin growth going forward, he said.