Amcor on acquisition trail as profits grow

Profits at packaging giant Amcor are approaching US$1bn, with the company’s CEO Ron Delia signaling the company is looking at acquisition to drive further growth, as he described the year as “outstanding".

Amcor’s full year revenue was up by 3.2 per cent to US$12.9bn, its EBITDA rose by six per cent to $US2.02bn, while its net profit jumped by 53 per cent or $US$327m, to US$930m. Since its acusiiton of rival Bemis two years ago, Amcor has been listed on the New York Stock Exchange.

For the full year, flexibles and rigids both grew, with flexibles up to US$10bn from US$9.75bn in 2020, and a 10 per cent rise in EBIT, up to US$1.43bn, while rigids rose to US$2.82bn from US$2.72bn, with an EBIT that grew to US$299m from US$284m.

The company said its position in grocery staples, healthcare and medicine had given it a strong platform in Covid.

Ron Delia, CEO at Amcor said: “FY 2021 was an outstanding year for Amcor on multiple dimensions. The operating environment remains highly dynamic, but our teams stayed fully focused on the key business drivers within our control, remained agile as conditions changed, and demonstrated exceptional execution and consistency all year. Financial results exceeded our expectations.

“It was an exceptional year financially for Amcor, with record earnings, exceptional margin management, despite steep raw material cost increases, and supply constraints, and momentum building through the year. Organic sales growth was two per cent, and we exited the year in Q4 with sales  higher than the prior year.”

Delia indicated that the company was back on the acquisition trail, and was looking at Asia in particular, but would not pay over the odds for a business.

Amcor is now listed on the New York stock exchange following its US$9bn takeover of Bemis two years ago, with integration now complete.