Rexam results continue to show slow recovery for beauty packaging
He also highlighted the fact that the company’s restructuring programme had helped to reduce the cost base in the plastics packaging division, a factor that will help to further boost the bottom line in the future.
Economic uncertainty persists
Speaking earlier in the year Chipchase had referred to the fact that the uncertainty in the current economic situation made the company’s strategy more difficult to implement.
“Uncertainty persists about the global economic outlook and visibility remains low,” he said.
This hurdle has meant the company has had to fine tuned its strategy, tailoring it around higher growth potential, both with respect to geographies and product categories.
“We are investing in carefully selected, high return projects in emerging markets and higher growth segments that will improve our overall growth prospects while keeping capital expenditure under tight control,” said Chipchase.
Focus on growth markets
A big focus for the renewed growth has been placed on the company’s beverage can division, particularly its operations in South America, where production capacity is about to be increased in Brazil with the construction of a second production line at its Pourso Alegre facility.
The company said the balance sheet has been further strengthened: net debt at September 2010 was £1.7 billion, and net debt/EBITDA on a reported basis was significantly reduced compared to the same period in 2009.
Likewise, the results for both beverage and plastic packaging were in line with the firm’s forecasts – with performance in H2 expected to match the first six months of 2010.
