28th Apr 2015 07:00
28 April 2015
Trading update
Rexam, a leading global beverage can maker, is today issuing the following trading update for the period from 1 January 2015.
Results for the Group are in line with our plans. Overall global beverage can volumes were up 5% (3.5% excluding the acquisition of UAC) in the first quarter. Volumes in Europe were strong driven by good growth in energy drinks and growth in Russia, UK, Germany and Italy. There were robust performances in India and Egypt, offset by softness in the Middle East. In North America, standard volumes were down in line with the market while specialty volumes continued to grow driven by energy drinks. Volumes in South America, after a strong start to the year, slowed down towards the end of the quarter, as expected, with continued growth in specialty cans outweighed by lower standard volumes.
Aluminium premiums have come down sharply and, at current rates, we would now expect a reduced cost headwind of £10-15m this year, compared to the £30m headwind expected when we reported our 2014 results in February.
Graham Chipchase, Rexam's Chief Executive said:
"Overall performance so far this year has been in line with our plans. Volume growth has been strong in Europe with good growth in energy drinks. Volumes in India and Egypt continued to perform well offsetting some softness in the Middle East. In North America, the soft drinks market remains challenging, but we did see growth in specialty volumes. South America volumes, after a strong start to the year, slowed down towards the end of the quarter, as expected.
We continue to expect 2015 to present a tough trading environment, but, as ever, we will focus on tight cost management and the elements of our business that we know we can control."
On 19 February 2015, Ball and Rexam announced that they had reached agreement on the terms of a recommended offer for Rexam. As previously announced, the offer requires approval from Ball's shareholders at the Ball Shareholders' Meeting, to be held by 19 August 2015. Prior to the meeting, Ball will be filing a Proxy Statement with the United States Securities and Exchange Commission, the final version of which will include Rexam's Q1 2015 results with 2014 comparatives.
Enquiries
Investors
Marion Le Bot, Head of Investor Relations, Rexam +44 20 7227 4100
Media
Mark Bunker, Head of Communications, Rexam +44 20 7227 4100
Martin Robinson, Tulchan Communications +44 20 7353 4200
A copy of this press release has been posted on the Rexam website, www.rexam.com.
Rexam will host a conference call for investors and analysts on Tuesday 28 April at 8am (UK time).
Participants dial-in number:
UK Participant dial-in: + 44 20 3139 4830 or 0808 237 0030
US Participant dial-in: +1 718 873 9077 or +1 866 928 7517
Participant PIN Code: 65131633#
A replay service will be available until 28 May 2015:
UK replay: +44 20 3426 2807 or 0808 237 0026
US replay: +1 866 535 8030
Replay PIN Code: 653037#
Editors' notes:
Rexam is a leading global beverage can maker. We are business partners to some of the world's most famous and successful consumer brands. Our vision is to be the best beverage can maker in the world.We have 55 can making plants in more than 20 countries and employ around 8,000 people. In 2014, our sales were £3.8 billion.Rexam's ordinary shares are listed with the UK Listing Authority and trade on the London Stock Exchange under the symbol REX. Visit www.rexam.com for further information.
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