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Amcor hikes half-year profit to $461m

Tuesday, 13 February 2018
By Print 21 Online Article

Melbourne-based global packager Amcor lifted its first-half profit by 15 per cent to $US329.7 million ($A461.6 million), despite rising costs of raw materials including resin and aluminium.

‘The business has responded exceptionally well’: Ron Delia, chief executive Amcor.

CEO Ron Delia says the profit increase was largely the result of expanded margins and progress on key investments. Revenue for the six months to December 31 rose only marginally, up 0.8 per cent to $US4.5 billion.

Delia says the entire flexible packaging industry has been hit by rising raw material costs, with oil prices a major contributor. Resin prices were up by 15 per cent and aluminium had risen by 17 per cent, while a range of inks and varnishes and other raw materials had also been rising.

“The business has responded exceptionally well, focusing on the growth levers that are within our control, implementing pricing actions to recover higher import costs and adapting the cost base and production capacity where volumes have been weaker.

“Those actions helped underpin the first-half result and will continue to provide further support for earnings and margins as these short-term challenges continue into the second half,” Delia said.

The company declared an unfranked interim dividend of US21 cents per share, up from 19.5 cents a year ago.

Amcor employs 35,000 people at 200-plus locations in 40 countries, generating more than nine billion dollars a year in sales.

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