Packaging giant Amcor has achieved record profits, up by a very decent 5.7 per cent to $322m for the six months to Dec 31, 2012.
This is despite an estimated $20m negative impact of the high Australian dollar on the figures, which would have sent the result up by 12.2 per cent to $342m.
Amcor's revenue fell 0.8 per cent to $6.035bn but earnings per share improved by seven per cent (or 14 per cent on a constant-currency basis) as management eked out the promised efficiencies from recent acquisitions.
Significant items after tax, relating to the closure of the cartonboard plant in Queensland, were $83.7 million. Profit after tax and significant items was $238.3m, up 16.3 per cent, rreturns, measured as underlying profit before interest and tax to average funds employed, of 15.8 per cent; the interim dividend increased 8.3 per cent to 19.5 cents per share; and the company had an operating cash flow of $236.7m.
In announcing the result, Amcor’s managing director and CEO, Mr Ken MacKenzie said: “The first half result represents another period of higher underlying profits, returns and dividends.
“Earnings per share before significant items increased and the dividend increased.
“The result again highlights the defensive nature of our businesses. Volumes across a number of the key market segments in developed countries continued to be stable and there was strong volume growth in emerging markets.”
Commenting on business segment performance, MacKenzie said: “The Flexible Packaging segment had a strong result with profit up 14.3 per cent and returns at 23.0 per cent. The business benefited from continued volume growth in emerging markets and the successful integration of the Aperio and Aluprint acquisitions.
“The Rigid Plastics group achieved a 9.5 per cent increase in earnings. The highlight was strong profit growth in the Diversified Products business as it continues to reposition itself in the higher value-add product segments.
“The Australasian and Packaging Distribution business achieved a solid result. After experiencing a slow first quarter, volumes were stronger in the second quarter.
“The new recycled paper mill at Botany in NSW commenced commissioning in October and to date the start-up has proceeded well. This is a world-class machine that will deliver $50m in PBIT benefits over the next two years.”
“Amcor is well positioned to deliver continued earnings growth.
“This growth is underpinned by the benefits from the new recycled paper mill at Botany, further acquisitions and our focus on innovation and emerging markets.
“In emerging markets, Amcor continues to support our customer’s growth. These regions represent more than 20 per cent of our sales and have delivered strong growth in earnings and returns over an extended period.
“All these growth initiatives are underpinned by a strong and growing cash flow.”
“This is an exciting time for Amcor. The outlook for the current year remains unchanged from the full year results in August. It is expected Amcor will deliver another year of higher underlying profits in the current year.”
