Amcor Limited Concludes 2018 Annual General Meeting Today

  • Oct 11, 2018 AEDT
  • Team Kalkine
Amcor Limited Concludes 2018 Annual General Meeting Today

Amcor Limited (ASX: AMC) arrowed up on the business transacted in Annual General meeting of the company held today.

After the conduct of Amcor’s 2018 Annual General Meeting scheduled for today, 11 October 2018, the ASX listed packaging company Amcor Limited released its results drawn out from the meeting. Among many resolutions passed with full majority, the re-election of Director Mr. Graeme Liebelt and Mr. Jeremy Sutcliffe confirmed no change in Board composition.

In an address to AMC’s shareholders, Managing Director and Chief executive officer Mr. Ron Delia confirmed that Fiscal Year 2019 performance is well in line with expectation and there is no change to FY19 outlook, announced in August.

In the start of Fiscal year 2019, the company has reportedly witnessed an increasing trend in the Rigid plastic business in Latin America, the Flexible business segment in Asia and Specialty Cartons in Eastern Europe. Mr. Delia told that there has been decent traction in recovering higher raw material costs in the flexible segment, while in the rigid plastics business there has been a continued volume growth in North American beverage end market.

Based on the elevating pattern of growth recorded at the start of FY19, the company expects solid Profit Before Interest and Tax (PBIT) for the year and modest earnings for first half of FY19, significantly higher than H1 2018. Whereas, Free Cash flows are expected to be between US$200 and US$300 million in FY19.

Further, as first announced in early August this year Amcor Limited has joined hand with fellow consumer packaging Bemis Company (NYSE: BMS) to form new company “New Amcor”. This merger transaction includes all-stock acquisition of NYSE listed Bemis by Australian consumer packaging group Amcor Limited at the fixed stock exchange ratio of 5.1 Amcor share for each Bemis share. The purchase consideration for the transaction was set to premium price of US$75.75 per Bemis share, based on Amcor’s A$15.28 per share.

In the newly formed “New Amcor”, Amcor shareholders will hold majority 71% of ownership while Bemis holding will have 29% holdings. The key selling point of the deal lies in the cost synergy potential of approximately US$ 180 million. However, the transaction is expected to reach the final close in first quarter of calendar year 2019.

With the consistent growth over past one decade, Amcor Limited has delivered strong shareholders return of more than 300% since October 2008. For Fiscal Year 2018, Amcor’s Board announced 5% higher dividend compared to FY17. This translates full year dividend to jump to 45.0 US cents per share from previous dividend of 43.0 US cents per share.

Amcor’s Earnings per share (EPS) increased from 60.6 US cents per share in FY17 to 62.6 US cents per share in FY18. It was driven by higher FY18 Profit After Tax (PAT) of US$724.0 million, up from US$701.2 million in prior year.  Free cash flow for the Fiscal year 2018 was US$194.1 million.

In today’s trading session, the share price of Amcor Limited has gone up by 1.601% or $0.210. It last traded at $13.330 on 11 October 2018. The stock has seen a negative performance change of 14.47% over the past one year. Most recently, AMC traded at a PE of 15.490 x with market capitalization of $15.19 billion.

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