Amcor Plc (ASX:AMC), is the leading global packaging solutions provider across food, beverage, pharmaceutical, medical, home and personal care segments. The Company has a legacy of over 160 years and takes forward the heritage as a truly Australian enterprise that successfully transitioned from being a paper mill and a bag manufacturing unit to the global multinational conglomerate that today it is.
The Current company ” Amcor Plc” was formed in 2019, following the merger with the Bemis Company Inc. The Bristol, UK headquartered giant offers a wide range of products including flexible and rigid packaging segments, each suitable for its application. The products are light in weight, recyclable and reusable in nature, allowing little wastage and harm to the environment.
The product mix range across the major 4 segments, namely-
- Flexible Packaging
- Rigid Packaging
- Speciality Cartons
Vision, Virtues and Future Path
Amcor employs over 50,000 people operating in almost 250 locations across more than 40 countries. The Company plans to continue to develop and operate environment-friendly primary packaging for fast-moving consumer goods. Focused portfolio and Differentiated capabilities remain the mantra for the company to establish as The leading global packaging company, with an aim to transition to only recyclable or reusable packaging by 2025.
Amcor continues to generate strong cash flow and reinvests the same to generate superior value for its shareholders consistently. The packaging giant believes in growing the business organically, and paying dividends and thus creating value over time efficiently and creatively.
Amcor has maintained a consistent strategy and business model. It has a unique combination of talented people, differentiated capabilities, scale and global reach. These are powerful competitive advantages that enable the company to better serve its customers and to develop and deliver packaging that best protects the environment. By remaining focused on its strategy and unique value proposition for customers, the Company expects to continue to grow and drive strong returns for shareholders and other stakeholders.
The integration of the Bemis business made Amcor, the new global leader in the consumer packaging with extended global reach, better and larger talent pool with advanced technical capabilities. The company is progressing on the opportunity for the packaging of food and healthcare products to extend the shelf life and bringing new and diversified food, medical and beverage products to the market.
Continues to Deliver Strong Performance following Bemis Acquisition
The Company delivered net sales of over US$6.184 Billion during the H1,2020 ending on 31 December 2019 against US$4.546 a year before. Additionally, almost US$30 million (pre-tax) was accounted to the cost synergies following the merger of Amcor and Bemis. The company announced a quarterly dividend of $0.17 a share in February following the strong results and higher guidance for the upcoming quarters.
Amcor announces strong H1 Results, Improved outlook for FY20: Click Here
Amcor aims to generate a free cash flow of over US$ 1 billion before the cash integration costs, which further strengthens the company’s dividend and value creation expectations for the shareholders. The company also improved its EPS growth guidance for the fiscal year to approximately 7-10%, from earlier 5-1-%. Majority of sales during the last fiscal year were realised from the flexibles business segments (78%) while rigids accounted for almost 22%, together accounting to over US$13 billion. North America continues to be the primary market for the packaging business.
Greener and Innovative
Amcor’s continued efforts on innovation fronts have paid off as the company uses 100% recycled PET bottles ideal for a variety of business segments, including food and beverages. Amcor anticipates reducing the virgin resin usage by over 200,000 tonnes by 2025, with over 1 million tonnes of recycled resign demand generation through 2025.
Amcor Supporting the global community through the COVID 19 Pandemic
Amcor realises that amid the outbreak, a larger than ever demand for nutritious food and safe medicines would be experienced. The packaging giant is proud to support the customers to deliver food, beverage hygiene and healthcare products required to reduce the spread and impact of the virus.
In order to succeed in its plan, the company would continue to operate its plants with the help of its dedicated employees across the world. The large global footprint coupled with the strong financial structure makes the company ready to support its customers during the outbreak. The Company has put in place the business continuity plans and the raw material supply chain to continue high productivity at lower risks ensuring the safety of its employees and communities.
The precautionary measures align with the latest guidelines from the WHO, including no travel and screening at the office and manufacturing locations and social distancing practices. Amcor identifies the current pandemic, not as an opportunity for greater demand but as an opportunity to give back to the communities.
Amcor made a significant contribution of RMB 1 million to the China Health Organisation and gave out large quantities of surgical masks and medical supplies to hospitals and large rigid containers to manufacture hand sanitisers in North America.
AMC settled the day in green at $ 13.980 on 29 April 2020, an increase of 3.556% from its previous closing price. The stock has a dividend yield of 5.06% and a P/E ratio of 32.590x.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.