Takeover target RPC posts flat third-quarter earnings

Writer, Stock Market Wire
Friday, February 1, 2019 - 07:24

Plastic packaging company and takeover target RPC Group posted flat earnings performance in the third quarter owing to higher polymer prices and weak Christmas trading.

The company also confirmed that it would engage with Berry Global Group, which on Thursday made a bid for the company rivaling a £3.3bn offer from Apollo Global Management.

Revenues generated by continuing operations in the three months through December were £894m, ahead of the corresponding period and reflecting organic growth of 1.4%, RPC said.

However, it added that sales growth moderated towards the end of the quarter due to weak trading around the Christmas period.

RPC said its operating profit from continuing operations was similar to the corresponding period amid a time lag passing on higher polymer prices to customers.

The time lag resulted in a 'temporary headwind', which had totaleld £10m at the end of the first six months of the year.

'The board of RPC confirmed that it will engage with Berry in accordance with its obligations under the code and in order to advance discussions in the interests of delivering best value to shareholders,' RPC said.

'There can be no certainty that any offer by Berry will be made for the company, nor as to the terms on which any offer might be made.'


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