The world’s biggest consumer goods packaging business, Amcor, saw sales revenue drop by 7 per cent in the year to June, but growth returned in the final quarter of the financial year, which the company expects to continue in the new year.
Net sales for the year were US$13.64bn, down from US$14.7bn the previous year, with EBITDA for the year down by three per cent, to US$1.96bn, from US$2.02bn in the 2022/23 year.
However, Peter Konieczny, interim CEO at Amcor, said, “Volumes returned year on year in the final quarter as customer demand improved, and our team maintained their focus on cost cutting.” Amcor shed 2000 jobs during the year, and closed 10 operating plants.
Looking ahead Konieczny said, “We remain confident in our strategy for long term growth, and will continue to invest in organic growth and pursue acquisitions.”
Both Flexibles and Rigid Packaging were hit by decreased consumer demand as cost-of-living pressures hit. Flexibles revenue for the year fell to US$10.3bn from US$11.2bn last year, while Rigid Packaging sales dropped to US$3.3bn from US$3.5bn last year.
Volumes in the June quarter returned to growth, up by one per cent compared to the prior year, and up by five per cent on the quarter to March. Softer volumes in healthcare and the US beverage sector were a drag on volumes, while home and personal care, meat, cheese and unconverted film and foil showed an increase in the quarter.
The biggest drop was in US hot fill beverages, primarily take away coffee cups, where volumes slumped by 13 per cent, as consumers reined in discretionary spending.
Amcor said it expects "strong growth" from its underlying business to continue through the 2025 year.
