Packaging supplier says destocking appears over

By Katie Bird

- Last updated on GMT

Plastic packaging supplier RPC said despite overall sales decline predicted for the next few months, profit should be ahead of the previous year levels.

Share prices in the company rose when it made the predictions in a pre-close statement published Wednesday 23 September and analysts suggest the cosmetics and personal care arm of the business is a significant contributing factor to the recovery.

In the statement, the company appeared confident that the destocking trend was over in most of its markets and broker Altium Securities was quoted in Reuter’s news agency as saying the cosmetics segment was the key sector to have ‘crossed the line’.

“The current economic environment is difficult and has impacted volumes, although the customer de-stocking effect appears to have run its course,”​ said RPC’s CEO Ron Marsh.

Despite predictions of better profits, the company expects sales to fall for the first half of the 2009/10 financial year due to a rise in polymer prices which were transferred through to customers leading to a drop in orders.

But it said the drop in sales would be more than compensated by lower costs and restoration of margins.

The company has also begun implementing a restructuring plan involving a number of plant closures which it said is ahead of schedule and claimed further cost savings have been identified.

Beiersdorf new design

Recent orders in the cosmetics and personal care segments include a new design for Beiersdorf’s Nivea for Men range.

The product is based on RPC Bramlage-Wiko’s Magic Star airless dispensing system but has been tweaked to give a more ‘masculine’ appearance.

The dispensing head has been raised to give it prominence, which has then been enhanced by a clear overcap and an indented band that separates the headpiece from the container, explained the company.

According to RPC this gives the new design a distinctive look which will ensure optimum recognition across the range as well as delivering a measured dose.

Related topics: Packaging & Design

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