Packaging
Full Year Results 2010
Wednesday 23. February 2011 - Record profits and improved returns
Rexam, the global consumer packaging company, announces its audited results for 2010.
Underlying business performance1
2010 2009 Change
Total sales (£m) 4,962 4,866 2%
Underlying operating profit (£m)1 535 446 20%
Underlying profit before tax (£m)1 412 285 45%
Underlying earnings per share (pence)1 32.8 25.4 29%
Total dividend per share (pence) 12.0 8.0
Highlights
Underlying profit before tax £412m – up 45%
Strong free cash flow of £316m – net debt down to £1.68bn
Return on capital employed (ROCE) improved to 12.3%
Cost efficiencies and restructuring savings total £88m
Beverage Cans 25% organic2 profit growth
Plastic Packaging3 16% organic2 profit growth
Closures division4 being marketed for divestment
Total 2010 dividends 12.0p including proposed final dividend of 8.0p
Commenting, Graham Chipchase, Rexams chief executive, said:
“In 2010 we delivered record profits and cash flow, improved ROCE and significantly strengthened our balance sheet.
“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.”
Statutory results5
2010 2009
restated
Sales3 (£m) 4,619 4,533
Operating profit3 (£m) 473 280
Profit before tax3 (£m) 338 134
Total profit/(loss) for the financial year (£m) 124 (29)
Total basic earnings/(loss) per share (pence) 14.2 (3.7)
Underlying business performance from continuing and discontinued operations before exceptional items, the amortisation of certain acquired intangible assets and fair value changes on financing derivatives.
Organic change, based on underlying business performance, adjusts for impact of disposals and discontinued businesses and is at constant currency.
Continuing operations.
Closures excludes High Barrier food containers and certain closures for Healthcare. Closures sales were £343m (2009: £333m) and underlying operating profit was £22m (2009: £28m).
Statutory results include exceptional items, the amortisation of certain acquired intangible assets and fair value changes on financing derivatives.