Financial highlights:
· Revenue growth of 53% to £1,876m reflecting the contribution from acquisitions, organic growth, polymer price tailwinds and translation benefits from foreign exchange movements
· Adjusted operating profit increase of 58% to £214.7m with adjusted EPS up 27% to 36.4p
· Return on sales increase of 30 basis points to 11.4%
· Strong cash generation; statutory net cash from operating activities increase of 62% to £245.4m, and free cash flow up 45% to £171.7m
· RONOA expansion of 320 basis points to 28.0% reflecting acquisition synergy realisation and profitability improvements
· ROCE increase of 30 basis points to 15.1%; remains well ahead of weighted average cost of capital
· Interim dividend of 7.8p up 28% representing the 25th year of consecutive growth
Strategic highlights:
· European synergy programme on track for completion in the current financial year with exceptional costs significantly lower in the half and overall implementation costs lower than expected
· Letica integration well advanced; successful completion of Astrapak acquisition (announced in FY 17)
· More than 20% of revenues now generated outside of Europe
· Healthy innovation pipeline; one additional innovation centre added taking the total to 32 worldwide
· Share buyback scheme implemented to deliver further shareholder value; £12.4m of capital deployed in the period
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Pim Vervaat, Chief Executive, said: |
“Trading was encouraging in the first half with record profitability levels and strong cash generation. The rationalisation of our European manufacturing footprint with 22 locations closing is now nearing completion with the benefits being realised as anticipated. The Letica integration is going well with the expected cost savings on track. Looking forward, the Group continues to target innovation based growth leveraging its global footprint and will participate in the ongoing consolidation of the plastic packaging markets, albeit with no significant acquisitions anticipated in the remainder of this financial year. The second half of the year has started well.”