Amcor delivered a 42.3 percent rise in statutory net profit to $612 million USD, propelled by earnings from the acquisition of US company Bemis, last year and continued strong demand for its products despite COVID-19.
The company, which is listed on both the US and Australian markets, reported full year net sales of $12.47 billion USD, up substantially from the prior year on a statutory basis, but below Bloomberg consensus of $12.66 billion USD.
Amcor, which produces a range of packaging materials for the food, drinks, pharmaceutical and other industries, declared a quarterly dividend of 11.5 cents per share, which translates to a 16 cent dividend, unfranked, in Australian dollars. It will be paid on September 23.
“2020 has been a milestone financial year for Amcor during which we delivered outstanding financial results ahead of the upgraded guidance provided in May,” Amcor chief executive Ron Delia said.
“Profit and cash flow were significantly higher than last year and supported continued capital investment, an increase in our dividend and the repurchase of 3.5 percent of shares outstanding.”
The benefits to the company from its $6.8 billion USD acquisition of Bemis, which was a major player in the food packaging segment of the market, had become increasingly evident throughout the 2019-20 financial year, he said.
“We made excellent progress in this first year of integration, with cost synergies almost 30 percent higher than original expectations and performance across the combined flexibles packaging business building momentum,” he said.
In terms of guidance for the new financial year Amcor forecast free cash flow of about $1 billion to $1.1 billion USD, and earnings per share growth of 5-10 percent.
Amcor said it expected to remain resilient in the face of COVID-19, given its role in the supply of consumer goods. But it warned that its earnings and free cash flow could potentially be affected by COVID-19 impacts, such as government lockdown restrictions, supply chain disruptions and the pace of economic recovery in global economies.
