Buoyed by a series of acquisitions and organic growth, RPC Group plc, the plastics packaging group, has reported full year sales up 17 percent and a 14 percent rise in pre-tax profits, and the United Kingdom-based firm said it is continuing to seek other acquisitions.
The group, which manufactures a range of thermoformed, injection and blow molded products for food and other sectors, said turnover in the 12 months ending March 31 rose to 1.2 billion pounds ($1.8 billion), while pre-tax profits came in at 67.1 million pounds ($103.9 million).
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rose 29 percent to 187.6 million pounds ($290.5 million).
In a statement RPC, based in Rushden, England, said its underlying profit growth at 4 percent was good, “despite a generally flat economic environment in mainland Europe” and a weaker euro currency.
Speaking about the numbers RPC's chief executive Pim Vervaat said the group had made yet more progress in implementing its “Vision 2020” strategy.
This comprised of “three strategic objectives of continuing focused organic growth in selected areas of the packaging markets, selective consolidation in the European packaging market through targeted acquisitions and creating a meaningful presence outside Europe where growth rates are considerably higher.”
Growth in Asia, following last year's deal to buy Hong Kong-based Ace Corp., “significantly enhanced the group's presence outside Europe”, while the acquisition of Promens — where projected synergies are said to have doubled to 30 million euros ($33.6 million) — had “accelerated the program for European consolidation, whilst providing access to new technologies and geographic expansion.”
Highlighting what he called “additional platforms for growth in Asia, North America, Africa and Europe,” Vervaat said the group would continue to look for more acquisition opportunities.
“Despite the currency translation headwinds and the adverse impact from the time lag in passing through higher polymer prices, the start to the new financial year has been satisfactory and in line with management's expectations,” he added.
