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Amcor’s first half results for the current financial year prompted the company to improve the outlook for the 2020 financial year. In total, Amcor reported an adjusted EBIT of $699m, up 4.4 per cent in constant currency terms.

The integration of the US flexible packaging outfit Bemis continues and has contributed to the half-year results. The acquisition was finalised in June.

Amcor CEO Ron Delia said the integration of the Bemis business is “on track” and the business has achieved mid-single digit organic growth in addition to the delivery of synergy benefits.

Amcor CEO Ron Delia.
Amcor CEO Ron Delia.

The integration has delivered approximately $30m in pre-tax synergy benefits in the first half of this financial year, and the outlook for synergy benefits have increased to $80m, on track to deliver $180m of total pre-tax synergy benefits over three years.

“We are making very good progress capturing synergies with momentum building ahead of our initial expectations, and we are excited by the opportunities for the combined business as we look ahead,” Delia said.

He said Amcor’s financial profile remains strong and it would be enhanced further as the full financial benefits from the Bemis acquisition are realised.

“With over $1bn of annual free cash flow, we are well placed to generate strong returns for shareholders by simultaneously investing in our core business, paying a compelling dividend, buying back shares, and growing through acquisitions.”

Food & Drink Business

Nestlé has invested more than 100 million Swiss Francs (RMB 730 million, AU$155.6 million) in a significant expansion of its operations in China. While it will grow its existing pet food plant in Tianjin, it will also develop new production facility – the company’s first in Asia – for plant-based products.

Yowie Group has proposed a four per cent share capital return, subject to shareholder approval and an ASX waiver. Company secretary Neville Bassett said the decision reflected the board’s consideration that Yowie had surplus capital at the end of April 2020 in excess of its working capital requirements.

Meal kit company Marley Spoon has added snacks to its home delivery service. The snacks are designed to be made at home and will launch on 1 June.