Rexam plc, the drinks and food packaging company says it is ahead of expectations as it goes into a World Cup summer where booze and other sales are expected to lifts is results.
The beer can manufacturer has ramped up production by 42 pct in Brazil and Chile where teams are expected to do well, in this year's competition.
UBS Wealth Management Research, who also have a 'buy' recommendation on Rexam said that Brazil was their favorite to win, having successfully predicted Italy's 2006 win.
"The greater Brazil's chance of winning, the more beer people will drink," said Rexam's commercial director in Brazil.
UBS recently upgraded their target price for the stock to 370.00 after it rose 15.28 pct over the last year.
The manufacturer is investing £68 million in production for Brazil, said that it will know more clearly its full year performance over the summer months.
So far this year it has grown volumes of 'Beverage cans' in Europe and South America whilst North America remains stable:
"Profits in Beverage Cans are somewhat higher than we anticipated at this stage, although it is early in the year, and there remains uncertainty in Russia." said Rexam in its statement on Q1.
"The execution of the cost reduction programme in Beverage Cans is complete and will reduce costs year on year by about £19m in 2010." the statement added.
'Plastic packaging' meanwhile remains unchanged.
"Net debt at March 2010, at just under £2bn, was up on December 2009, mainly due to our normal seasonal inventory build and £100m of foreign exchange translation movements." the statement read. "Our committed bank facilities maturing in 2011 and 2012 have been refinanced for 5 years to 2015 at better rates than our existing facilities."
The half year results are due 28 July - 17 days after the end of the World Cup.
Graham Chipchase, Chief Executive said, "Trading in the first quarter was encouraging, with Beverage Can volumes better than expected in Europe and North America. However, it is still early in the year, and trading in the traditionally busy summer season will influence our full year performance. As previously expected, we are seeing some recovery in Plastic Packaging, although Closures remains weak. The execution of our cost reduction initiatives and our continued focus on cash generation gives us confidence of improved performance in 2010."