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.
