Amcor raises outlook on strong third quarter

Packaging giant Amcor has raised its full year profits outlook, as third quarter figures all trend upwards, and its free cashflow tops US$1bn.

The company bounced back from a sluggish second quarter, with its GAAP net income for the quarter rising by 58 per cent to $US684m, while GAAP earnings per share surged 63 per cent, to US43.8c a share.

Amcor raised its full year earnings per share forecast from 10c-14c to 14c-15c. For the quarter its adjusted EPS of US51.5c a share was up 16 per cent on a comparable constant currency basis. Its adjusted EBIT rose 9 per cent on a comparable constant currency basis, to $US1.14bn.

Amcor has just taken a stake in the world’s biggest digital flexibles printer ePac, which has 76 HP Indigo printers.

“Amcor is maintaining momentum and executing well in the face of a dynamic operating environment. As a result, we delivered strong year-to-date performance and we are raising our full-year adjusted EPS growth outlook to 14 to 15 per cent in constant currency terms,” said chief executive Ron Delia.

“The business delivered strong adjusted EBIT growth of nine per cent on a year to date basis and organic growth has continued to strengthen as we progress through the fiscal 2021 year.

“We are actively investing in the future, expanding capacity in higher value segments and higher growth markets and increasingly using open innovation and now corporate venturing to identify new avenues of growth. Growth investments like these, along with continued strong execution, will enable continued momentum and reinforce our belief that the Amcor investment case has never been stronger.”

For the nine months ending 31 March, Amcor net sales were up two per cent on a constant currency basis to US$9.4bn, EBITDA was up by six per cent to US$1.45bn, and net income up by 13 per cent to US$805m. Flexibles sales were US$7.3bn, Rigids US$2.1bn. Both increased their EBIT as a percentage of sales.

The Bemis acquisition continues to perform above expectations, Amcor expects to realise US$70m in synergy benefits this year, and US$180m in 2022.