LONDON (Alliance News) - Rexam PLC on Thursday said its pretax profit fell in 2015 amid a tough trading environment and writedowns it booked on the value of its assets and said it expects a similarly difficult set of conditions to prevail in 2016.
The beverage can maker, which is in the process of being acquired in a GBP4.3 billion deal by US rival Ball Corp, re-entered the FTSE 100 on Monday.
It said Thursday its pretax profit for the year to the end of December was GBP250.0 million, down from GBP343.0 million, hit by higher exceptional items and a loss on the fair value changes in certain operating derivatives.
Sales for the year edged higher, up to GBP3.93 billion from GBP3.83 billion, as total beverage can volumes rose 2.0% organically and were up 4.0% including the contribution from United Arab Can Manufacturing Ltd. This growth was offset partially, however, by currency translation effects across the business.
Rexam said it will pay a final dividend of 11.9 pence per share, leaving its total dividend for the year flat at 17.7p.
"We expect 2016 to present a tough trading environment but with continued volume growth. The expected premium benefit will be offset by pricing pressures in Europe and the savings from restructuring will be partially offset by cost headwinds. However, as ever, we continue to focus on tight cost management and the elements that we know we can control," said Chief Executive Graham Chipchase.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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