Sales at packaging juggernaut Amcor fell by six per cent on a constant currency basis to US$3.44bn in the three months to September, with GAAP net income down by 35 per cent to US$152m.
Non-GAAP results showed EBITDA down by seven per cent and EBIT down by nine per cent. The company said the results were broadly in line with expectations, and said it remains on track to meet its 2024 fiscal guidance.
CEO Ron Delia said, “As anticipated, market conditions remain challenging, with continued destocking and soft demand, which we expect to continue in the near term.”
Delia said Amcor was “laser focused” on taking action to minimise cost and inflation pressures, and to align its own cost base with market dynamics.
Amcor will continue to invest in organic growth, and will look to acquire businesses in faster growing high value markets, as well as giving higher dividends to shareholders. It returned US$205m in the quarter compared to US$180m in the same quarter last year.
In the quarter flexibles sales fell from $2.78bn to US$2.57bn, while rigid packaging revenue dropped from the US$933m achieved in the same period last year to US$875m this year. Volumes overall were around eight per cent lower than the same period last year.