Price hikes push Rexam to a record
12 April 2012
REXAM, the world's biggest maker of soft-drinks cans, has unveiled operating profits up 20% to a record £333m after forcing price increases on to Coca-Cola, Pepsi and other major customers.
Chief executive Rolf Borjesson hailed the £1.5bn acquisition of American National Can as a success, lifting his forecast for annual synergies from the deal from £30m to £35m.
When he bought ANC in 2000, there was too much capacity and can prices were falling. But Rexam had since raised prices 'by 5% plus', he said, adding an annualised £40m to the bottom line.
Group pre-tax profits rose 8% to £218m in the year to December and Borjesson promised better in 2002. The total dividend is ahead 5% at 15.9p a share.
