The UK-based rigid packaging specialist announced that headline revenues had jumped 53% to £582m (€678m) - 11% higher on a like-for-like basis - and that operating profits had doubled to £41.3m compared to the same period last year.
The closure of the Runcorn plant in the UK plus other exceptional items had cost £4.1m.
Sales and polymer prices
The first half of the year had also witnessed a drop off in polymer prices, which had allowed the RPC to boost its margins.
The firm, which converts polymer granules into finished packing products across a range of sectors including food and beverage, said that sales volumes were similar to 2010 but that more demand for ‘higher added value’ products such as coffee capsules had inflated sales revenues.
RPC said its selling price increases reflected the “pass through of higher polymer prices and the improved sales mix”.
It added that polymer markets in the first half of 2011/12 had “stabilized and process started to fall from June, resulting in improved margins for most product groups”
RPC said it had seen savings of around £4m from the Superfos deal during the period with this figure forecast to rise to £9m by the end of the year.
Superfos, oxygen barriers and glass replacement
In its injection moulding operations, year-on-year sales more than doubled to £342m and operating profits nearly trebled to £32m – due largely to returns generated by Superfos that was acquired in February 2011.
Superfos makes and distributes open top filled injection moulded containers and has plants in France, Belgium, Spain, Poland, Denmark and Sweden, with joint ventures in Turkey and North Africa.
“Although sales volumes in southern Europe were relatively weak in the second quarter due to generally subdued activity levels in the industrial markets, overall margins were strong as the polymer purchasing and other synergies have started to take effect,” said RPC.
A modest performance improvement in the thermoforming unit was largely driven by developments in containers for margarines and spreads.
“Most of the growth is currently generated from new business developments in oxygen barrier packaging (replacing glass and metal) and coffee capsules, which continues to grow with further investment in the period in three new production lines at Kenfig (Wales) and additional lines at Bouxwiller (France) and Deventer (the Netherlands) required to keep up with customer and consumer demand,” added the company.
The blow moulding division saw sales rise 10% to £94m. In food applications there had been strong demand for barrier blow moulded plastic jars and bottles.
The firms said: “Manufacturing capability and technological innovation is helping to accelerate the conversion of conventional glass and metal packaging to lighter weight plastic.”
Outlook
RPC acknowledged that looming economic problems were already giving rise to a demand slowdown in some product areas.
However, it remained upbeat on continued demand for higher added value products and the fact that around 60% of its activities were in “relatively resilient food markets.”