Overall sales revenue for the 6 month period ending September 30 was up 9 per cent to reach ₤381.9m (€456.5m), of which 3 per cent was an increase in sales volumes. Approximately, 16 per cent of the business during this period came from the personal care market which falls into the company’s injection moulding and blow moulding divisions.
‘Substantial growth’ in personal care
According to RPC chairman Jamie Pike, the group’s performance was significantly stronger in the personal care sector than many others in the food and beverage packaging sector.
“Whilst activity levels have generally been subdued, the Group is demonstrating substantial growth in the personal care, pharmaceutical and coffee capsule sectors,” he said.
Bramlage Wiko, the injection moulding division which serves the personal care market as well as others, experienced substantial volume growth, according to the company. This was partly down to a lack of destocking effects which significantly affected last year’s results, according to the company.
The blow moulding sector, which similarly serves personal care, also showed a recovery in the market with one of its German sites (Kutenholz) benefiting in particular.
In both sectors, the company highlighted a return to innovation driven by client demands for new materials and designs.
Lower restructuring costs boost net profit
Sales revenue increases combined with a more efficient business led to an adjusted operating profit of ₤21.8m, 14 per cent up on last year’s figure.
In addition, restructuring costs, which were significant last year due to the company’s extensive restructuring strategy, were much smaller this year leading to a net profit of ₤13.1m, an increase of 64 per cent on last year.
Commenting on the future for the company Pike said: “With the RPC 2010 programme reaching its conclusion, the focus has firmly turned to achieving profitable growth.”
Despite ‘subdued’ economic conditions the group says it has managed to improve market share which it believes will continue going forward. Although polymer prices remain ‘volatile’ the majority of these have been passed on to customers, it said.