Packaging company, Amcor Limited (ASX: AMC) has released its results for half year ended 31 December 2018. For the half-year period, the company has reported Profit after tax (PAT) of US$328.5 million which is 3.4% higher than the previous corresponding period (pcp) on a constant currency basis. The operating cash flow of the company has increased by 27.0% to US$115.3 million. The revenue from the ordinary activities was $4,551.8 million, up 1.1% on pcp. Following the release of the results, the share price of the company increased by 1.889 percent as on 11 February 2019.
As per the company’s CEO Mr. Ron Delia, the company had a good first half year with earnings growth in line with its expectations and balanced across the Flexibles and Rigids packaging segments. While announcing the results he informed about the improvements in the company’s world-class safety performance, with the number of recordable cases declining by 20% compared with last year, continued sales growth with multinational and regional customers and in healthcare packaging globally and strong earnings growth in emerging markets. Further, the full-year earnings outlook for the Rigid Plastics segment has not changed from the guidance provided in August 2018.
According to Mr. Ron, the company is on track to deliver against the full year outlook which was provided in August 2018. In FY 2019, the company is expecting both of its Flexibles and Rigids segments to achieve solid underlying earnings growth in constant currency terms, and cash flow is expected to be strong.
In Europe, the Middle East and Africa division, the company’s business delivered good sales growth particularly with large multinational customers, and cost and operating performance remained solid. During the period, the Sales increased across a range of end markets including the healthcare, petcare and coffee segments, however, overall product mix was unfavourable mainly within food categories. During the half-year period, the company also secured a multi-year extension to the long-term relationship with Nespresso.
In the Asia Pacific segment, the company delivered good sales growth. Further, the large multinational customers and cost performance were excellent with the business benefiting from prior period restructuring and cost savings initiatives. During the period, the company opened a greenfield plant in the high-growth Indian market which will provide an excellent opportunity to improve Amcor’s product offering and to strengthen the partnership with an important global customer.
The Board has declared an interim dividend on ordinary shares of 21.5 US cents per share, unfranked, which will be paid on 1 April 2019. The interim dividend will be paid in Australian dollars and it will be 29.78 cents per share, representing a 13.8% increase on the pcp.
Meanwhile, in the last six months, the share price of the company increased by 1.85 percent as on 8 February 2019. AMC’s shares traded at $14.560 with a market capitalization of circa $16.55 billion as on 11 February 2019. It has 52 weeks high of $15.370 and 52 weeks low of $12.665.
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