Worries over healthcare unit weigh on can maker Rexam

 
City A.M. Reporter
BEVERAGE can maker Rexam said yesterday that its healthcare business has performed below expectations as its pharma division lost some business in animal health.

The healthcare business, which contributes about 10 per cent of the company’s total sales, makes precision medical devices such as bronchial inhalers, injection syringes and tubes.

Rexam, whose cans are used by companies such as PepsiCo, Red Bull and Carlsberg, however, reported a six per cent rise in global sales volumes at its beverage can business.

The company also said the divestment of its personal care business was in its final stages.

“We are on track to return £370m of the proceeds to shareholders,” chief executive Graham Chipchase said.

Rexam said in July that it would sell its underperforming personal care business in two parts for $709m in cash.

Shares in Rexam fell 1.2 per cent to 435.9p.