Amcor improves full year earnings outlook
Packaging provider Amcor has posted an robust increase in profits for the nine months to March 31 and raised growth in full year earnings per share.
Amcor's net income from the nine month period rose 10.8 per cent to $US719 million ($A1.1 billion), but was 12.7 per cent higher in constant currency terms which removes the effect of foreign exchange fluctuations.
Net sales were down 1.8 per cent in constant currency terms to $US9,325 million ($A14 billion).
Amcor said it has continued to operate its 250 plants around the world with minimal disruption and has not experienced significant business continuity issues related to accessing raw materials.
Its operating costs have also not been materially impacted.
"While we are not immune from the current challenges,Amcor remains relatively well positioned and defensive, given our sales are almost entirely weighted to essential consumer staples end markets and we have broad geographic diversification and global scale," CEO Ron Delia said.
He said earnings growth has remained strong due to momentum in the business and faster than expected synergies from its acquisition of Bemis last year.
It raised the guidance from a previous 7-10 per cent estimate (constant currency basis) to 11-12 per cent for the full year as the business has avoided major problems from the COVID-19 pandemic.
Most sales come from the US and western Europe.
It declared a quarterly dividend for its ASX investors of 17.7 Australian cents per share, unfranked.
Amcor said this was based on the US dividend of 11.5 US cents per share, converted at an exchange rate of 0.6481 over the five trading days to May 4.
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