Interim Management Statement

RPC Group

31st January 2013

Interim Management Statement

RPC Group, Europe's leading supplier of rigid plastic packaging, today issues its interim management statement for the period from 1 October 2012.

Trading performance

Sales volumes (as measured in polymer tonnes converted) in the third quarter of the financial year 2012/13 were on a similar level to the corresponding period of the previous year despite a more extended shutdown by many customers this Christmas. Activity levels in January are generally good notwithstanding the challenging macro-economic conditions. The improvement in the sales mix towards higher added value products such as coffee capsules continues.

As anticipated, the adverse time lag in passing through polymer price variations to the customer base resulted in operating profit (before exceptional items) in the third quarter below the corresponding period last year. When adjusted for this effect, profitability during the period on a constant currency basis improved due to the enhancement of the sales mix and cost efficiency measures. It is expected that the polymer time lag effect will have a positive impact in the final quarter as selling prices will be increased to reflect the higher polymer prices experienced in the third quarter.

The financial position remains robust with satisfactory cash flow development in the third quarter and significant headroom under the Group's debt facilities.

Other developments

The recently launched "Fitter for the Future" business optimisation project is progressing well and following the identification of the Beuningen (Netherlands) and Antwerp (Belgium) sites for proposed closure, consultations are underway. Other cost efficiency measures are also progressing to plan whilst one of the redundant properties is anticipated to be sold this financial year. The process of integrating the Manuplastics business acquired in November 2012 is going well with a major new contract won and the realisation of cost synergies on track.

Ron Marsh, RPC's Chief Executive said:

"Activity levels have been encouraging in what continues to be a challenging market environment. The financial performance in the last quarter of the financial year is set to improve as selling prices are adjusted to reflect increased polymer prices. The continued growth in higher added value products and the cost savings from the Fitter for the Future programme give me confidence for the future."

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