RPC profits up as restructuring pays dividends

A trading update this morning said that although sales were down in the first three months of this financial year compared to 2008, pre-tax profit had risen.

The company said that a shortfall in sales volume had been “more than compensated” by the restoration of profit margins and lower costs, notably through the RPC 2010 restructuring programme that was first announced last June.

In the last year, RPC has closed its Mozzate plant in Italy, the Aš  facility in the Czech Republic and Ravenstein in the Netherlands.

In addition, the company’s operations at Raunds in the UK and Halfweg in the Netherlands are due to close in the coming months.

Sales were hit in the cosmetics and personal care sectors, although RPC said that sales in the food and DIY markets were holding up well.

Chief executive Ron Marsh said: “Whilst the current economic environment remains difficult and is impacting volume levels, the actions undertaken to address the cost base and restore margins have so far more than offset the impact of lower volumes.”

“I remain convinced that RPC’s prospects are good with improving industry dynamics and the successful completion of the RPC 2010 programme.”