Rexam, a leading global beverage can maker, announces its results for the full year 2015, showing how the company has continued to progress despite difficult conditions.

In announcing the results, Graham Chipcase, Rexam's Chief Executive underscored a number of the highlights achieved by the company in 2015:

• Beverage can volumes including UAC up 4% (2% organic)
• Underlying operating profit flat at constant currency, including UAC
• Underlying earnings per share up 5%
• Return on capital employed at 14.5%
• Final dividend declared as a second interim dividend of 11.9p, taking total to 17.7p in line with 2014, consistent with the terms of the Ball offer
• Recommended offer by Ball Corporation progressing with completion expected towards the end of H1 2016. 

He commented:

"I am pleased with our performance and progress as reported volumes grew 4% in difficult trading conditions. Underlying profit before tax is up 1% despite commoditisation of certain specialty cans in North America and higher energy costs in Brazil. We remained focused on our strategic priorities whilst supporting the anti-trust process for the Ball offer.

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."

Over the last years, Rexam has transformed its business, returning approximately £1.6bn of cash to shareholders since 2010, to create a focused beverage can maker. Reviewing the Ball offer, Graham Chipcase said that he, along with the board members, saw it as a strong opportunity to create a 'best in class' global service in the metal packaging industry which would enhance the company's ability to serve the demands its global customers. Despite the offer though, in 2015 Rexam continued its own plans as an independent company.

Rexam had a solid start to the year in both standard and specialty cans in Europe resulting in 3% volume growth for the year driven by Germany,  Austria and Spain. While standard cans were flat, specialty cans were up 8% as good growth continued within energy drinks.  Despite its declining beer market, Russia saw volumes grow by 3% as the can continued to gain share in the pack mix reaching 25% for beer which was helped by the development of modern retailers in the market. The company also invested in Europe to grow business with a new plant in Switzerland.

Within the Americas, can consumption in North America remains the highest in the world at 315 cans per capita per year of which Rexam has over a fifth of the market. In 2015 the company's volumes were down 2% due to the carbonated soft drinks market, however by continuing to diversify the portfolio and establishing strong positions with customers in growth categories, Rexam is now a leader in the craft beer segment - a growth category.

Rexam saw further growth in Mexico and Central America, and in South America volumes grew at 2%, with specialty cans growing particularly fast in the market.

Volumes in India grew at 22% and overall volumes in the Africa, Middle East and Asia region grew 55%.

The next months see the recommended offer by Ball Corporation progressing with completion expected towards the end of H1 2016. Rexam's proposed combination with Ball will create a global packaging leader driven by a common desire to serve all customers in the best possible way around innovation, manufacturing excellence, supply chain efficiency and sustainability that will be able to respond to industry changes in a faster and more effective manner.