RPC GROUP
Half-year net profit doubled to a record level / More synergies to come from successful Superfos integration / Confidence in future performance
Net profit doubled to a record GBP 26.3m (EUR 30.6m) at Europe’s leading supplier of rigid plastic packaging RPC Group (Higham Ferrers, Rushden / UK; www.rpc-group.com) in the six months to 30 September 2011 as a result of the successful integration of the Superfos business, acquired in February 2011 – see Plasteurope.com of 23.02.2011. Overall revenue was 54% higher at GBP 586.7m (EUR 682.9m) due to the inclusion of Superfos, but there was also an 11% increase in like-for-like sales. The adjusted operating profit more than doubled to GBP 45.4m (EUR 52.8m) and the return on capital employed (ROCE) improved to 18.1% compared with a pro-forma of 15.1% for the year ending March 2011. Chairman Jamie Pike termed it a very good first half-year performance, adding that he expects continuing synergies from the Superfos integration to reach GBP 9m (EUR 10.5m) for the year ending 31 March 2012.
The injection moulding business performed well, returning an operating profit of GBP 31.9m (EUR 37.1m) on sales of GBP 342.3m (EUR 398.4m). It now comprises three clusters: UK Injection Moulding (UKIM), Bramlage-Wiko and Superfos. Effective 1 April, the Superfos site in Runcorn was incorporated into the UKIM cluster, but, as a result of a review of business profitability, it is now to be closed. The majority of its activities will be transferred to UKIM’s five other sites by 30 June 2012.
New product development in pharmaceuticals, cosmetics and personal care has led to strong volume growth in the Bramlage-Wiko cluster and the combination of its positive market position with leading technological know-how is expected to enable it to take a significant share of new business opportunities. Production has been increased at the Slovakian manufacturing facility and there are encouraging growth opportunities in the US market.
At Superfos overall margins were strong despite sales in southern Europe being relatively weak in the second quarter. Growth opportunities in light-weighting and barrier products are being actively pursued.
The 10% increase in sales revenue to GBP 150.8m (EUR 175.5m) in the thermoforming business was largely attributable to the passing through of higher polymer prices. Growth for coffee capsules and barrier products offset lower volumes in vending. The business is based around three clusters: Bebo (retail food packaging), Tedeco-Gizeh (food service) and Cobelplast (sheet production). Operating profit for the half-year was GBP 7.1m (EUR 8.3m).
Strong demand in both food and non-food sectors led to a strong performance from the blow moulding activities. Sales volumes improved again, revenue was up 13.6% at GBP 93.6m (EUR 109.0m) and operating profit increased by 52% to GBP 6.4m (EUR 7.5m), helped by cost savings arising from restructuring. Barrier jars and bottles gained ground at the expense of glass and metal packaging in the UK and mainland Europe saw higher demand from the agrochemical market.
The group believes it is well placed to continue to withstand any general economic downturn and remains confident that the stated aim of 20% ROCE by March 2014 will be achieved.
e-Service:
RPC half-yearly results as a PDF document
The injection moulding business performed well, returning an operating profit of GBP 31.9m (EUR 37.1m) on sales of GBP 342.3m (EUR 398.4m). It now comprises three clusters: UK Injection Moulding (UKIM), Bramlage-Wiko and Superfos. Effective 1 April, the Superfos site in Runcorn was incorporated into the UKIM cluster, but, as a result of a review of business profitability, it is now to be closed. The majority of its activities will be transferred to UKIM’s five other sites by 30 June 2012.
New product development in pharmaceuticals, cosmetics and personal care has led to strong volume growth in the Bramlage-Wiko cluster and the combination of its positive market position with leading technological know-how is expected to enable it to take a significant share of new business opportunities. Production has been increased at the Slovakian manufacturing facility and there are encouraging growth opportunities in the US market.
At Superfos overall margins were strong despite sales in southern Europe being relatively weak in the second quarter. Growth opportunities in light-weighting and barrier products are being actively pursued.
The 10% increase in sales revenue to GBP 150.8m (EUR 175.5m) in the thermoforming business was largely attributable to the passing through of higher polymer prices. Growth for coffee capsules and barrier products offset lower volumes in vending. The business is based around three clusters: Bebo (retail food packaging), Tedeco-Gizeh (food service) and Cobelplast (sheet production). Operating profit for the half-year was GBP 7.1m (EUR 8.3m).
Strong demand in both food and non-food sectors led to a strong performance from the blow moulding activities. Sales volumes improved again, revenue was up 13.6% at GBP 93.6m (EUR 109.0m) and operating profit increased by 52% to GBP 6.4m (EUR 7.5m), helped by cost savings arising from restructuring. Barrier jars and bottles gained ground at the expense of glass and metal packaging in the UK and mainland Europe saw higher demand from the agrochemical market.
The group believes it is well placed to continue to withstand any general economic downturn and remains confident that the stated aim of 20% ROCE by March 2014 will be achieved.
e-Service:
RPC half-yearly results as a PDF document
06.12.2011 Plasteurope.com [220990-0]
Published on 06.12.2011
German version of this article...