Global packaging giant Amcor has boosted its statutory profit by 15 per cent, showing good progress on key investments.
CEO Ron Delia said the last half-year saw increased earnings, expanded margins and strong returns.
A strong cash flow enabled the board to increase the interim dividend by eight per cent to 21 US cents per share.
“The first-half result was in line with the expectations we outlined at our AGM, and demonstrated the resilience and agility of Amcor in the context of short-term industry challenges related to raw material cost increases, weak volumes in one rigid plastics segment, and mixed conditions in emerging markets,” Delia said.
“The business has responded exceptionally well, focusing on the growth levers that are within our control, implementing pricing actions to recover higher input costs, and adapting the cost base and production capacity where volumes have been weaker.”
Amcor expects another year of earnings growth in constant currency terms.
“We have continued to make progress against our strategic priorities with investments in the Alusa and Sonoco acquisitions, and restructuring initiatives in the flexibles segment, contributing more than USD 30 million to PBIT in the current half,” Delia said.
“Together, these investments will deliver more than USD 100 million of PBIT growth across the three-year period ending FY2020, in addition to organic growth and further M&A.
“The long-term growth potential of Amcor remains substantial.
“We have a truly global business with a presence in more than 40 countries, unique market leading positions in attractive segments, and a strong, differentiated value proposition for customers.
“This will enable continued strong cash generation, allowing us to take advantage of the significant growth opportunities, both organic and through acquisitions, across all Amcor’s businesses.”
Amcor: Key profit highlights
- Profit after tax (PAT) of USD 329.7 million, up 3.7% on a constant currency basis;
- Earnings per share (EPS) of 28.5 US cents, up 3.7% on a constant currency basis;
- Profit before interest and tax (PBIT) margin, up 30 basis points to 11.4%;
- Strong returns, measured as profit before interest and tax to average funds employed of 19.7%;
- Operating cash flow, after net capital expenditure and cash significant items, of USD 90.8 million(3)
- Interim dividend per share increased 7.7% to 21 US cents.
