Softer than expected sales volumes and the continuing high value of the Australian dollar have contributed to the Australian and New Zealand business of Amcor having a subdued start to the 2012-2013 financial year, Amcor chief executive Ken Mackenzie says.
Speaking ahead of the company's annual general meeting, MacKenzie said the company's first quarter of the current financial year had been in line with expectations, but challenging trading conditions in its home market had led to a quieter start to the year in the region.
“The high Australian dollar is impacting our customers ability to export, as well as the headwinds of rising costs in terms of spending on energy and people,” he said. “Volumes are softer than anticipated.”
He said the company was geared for positive growth from the imminent official opening of its new B9 recycled paper mill in the Sydney suburb of Botany.
He said the mill had already started producing saleable quality paper and would start ramping up production early next year.
The machine is expected to deliver cost benefits of $50 million in the next two years and help Amcor deliver new products.
On the positive side of the ledger, he said the company's presence in developing markets was yielding it the strongest growth. He said the company was now achieving almost a fifth of its sales in emerging markets, particularly Asia and South America, accounting for 18 per cent compound sales growth over the past decade.
