• Ron Delia, Amcor CEO: Committed to a future of more sustainable packaging.
    Ron Delia, Amcor CEO: Committed to a future of more sustainable packaging.
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Global packaging juggernaut Amcor says it will continue with strong growth in the new financial year, after reporting upticks in all its figures for the 2022 year, with the fourth quarter the best of all.

The company said 2022 was an “outstanding” year, with CEO Ron Delia saying the same would be the case in 2023. Speaking at a conference call on the results he said, “Amcor has grown organically, through acquisitions, and in value.”

Delia said Amcor was focusing on high growth, high value segments, which included healthcare and consumables, specifically meat, cheese, coffee and petfoods. He said the non-discretionary nature of the products it supplied packaging for would shield it against any "headwinds" in the coming year.

He said, “This is our third consecutive year of accelerating top line growth, and we expect to sustain this momentum including by stepping up investments in areas such as higher value-add priority segments.”

For 2021/22 net sales were up by 13 per cent, or four per cent on a constant currency basis, to US$14.5bn, EBITDA rose by four per cent, or seven per cent on a constant currency basis, to US$2.1bn, while net income rose by six per cent, or eight per cent on a constant currency basis, to US$1.2bn.

The company pushed through price rises of 12 per cent in the year, as costs including resin, plastic films and aluminium prices soared.

Delia said along with a focus on its priority segments, innovation would drive organic growth, along with emerging markets and sustainability. Amcor is stepping up its investment in innovation, and in capex, it expects to spend 4-5 per cent of its sales revenue on capex in the coming year. Delia said "We are making strong investments in R&D, and have an excellent team."

The company is also looking at further acquisitions, Delia said it had made 30 in the past decade, including the latest, a Czech-based flexibles printer. It has just increased its stake in global digital flexibles producer ePac, in which it first invested last May. Delia said it would continue to invest in high-growth “visionary” companies.

As a consequence of the invasion of Ukraine, Amcor is selling its Russian operation, which comprises three plants, and from which it expects to take a two per cent hit to its overall revenue. Delia expects the sale to go through in the second half of the year “in an orderly fashion”. Amcor currently has some 225 plants in operation around the world.

Shareholders were celebrating the result, with earnings per share up by 11 per cent to 80.5 cents, a figure Delia says will be emulated in 2023, guidance is between 80-84 cents. Dividend was 48 cents a share.

Delia said Amcor was in a leadership position in most of its segments, and said, “The many opportunities we see for continued underlying growth give us confidence in our outlook and we look forward to continuing to deliver on our strategic and financial objectives.”

Flexibles sales rose to US$11.1bn from US$10bn, while Rigids rose to US$3.4bn from US$2.8bn, although on a constant currency basis the rise was five per cent. Flexibles EBIT rose to US$1.5bn from $1.4bn, but Rigids EBIT dipped to US$289m from US$299m, with higher raw materials and shipping costs behind the slippage.

The company said “persistent supply chain disruptions” had a dampening effect on volume growth in some categories through the year, and in parts of the business actions were taken to direct constrained materials to their highest value use, which also had a “favourable impact” on the mix.

Amcor shares are up eight per cent on the year, although from the low of $14.72 in March they have risen strongly, up to $18.77 today.

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