The big hike in reported earnings at drinks can manufacturer Rexam (REX) is misleading, reflecting the fluctuating value of derivatives. Strip that out and pre-tax profit was down 2 per cent to £166m. It sold 4 per cent more cans than last year, but that was offset by the impact of rising aluminium costs and currency movements, which hit first-half operating profits to the tune of £20m.
Demand levels from the UK, Benelux and Spanish markets were on the up. But management was particularly pleased by South American volumes, which rose by over a fifth on the back of World Cup fever. First-quarter activity in the region was also helped along by glorious weather and this year’s timing of Brazil’s Carnival, which extended the normally hectic summer season.