Beverage can sales drive Rexam’s profits01 August 2012
Drinks can maker Rexam has reported a 1% increase in pre-tax profits to £207 million as beverage sales helped to offset a slide in the firm’s healthcare business.
London-headquartered Rexam, which makes around 57 billion cans per year for brands such as Red Bull, PepsiCo and Carlsberg, said that the combined drinks packaging and healthcare businesses delivered a 3% increase in revenue to £2.17 billion.
Can volumes were up 6% but the firm’s healthcare division reported a fall in sales due to a weaker flu season in the US and weaker pricing of one of the company’s key products.
The results do not include Rexam’s personal care business which has been put up for sale in two parts for £456.4 million.
Rexam also said that it would delay making a decision on a new can-making facility in Russia until it has a more accurate understanding of the impact of beer tax hikes and sales restritions in the country. President Vladimir Putin has said that new taxes could be introduced beyond the 25% scheduled for January 2013 as the government attempts to battle alcoholism.
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