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Amcor PLC (ASX:AMC) shares are under pressure on Friday, tumbling 2.3% to AU$15.78 from their previous close of AU$16.14. This decline contrasts with the broader S&P/ASX 200 Index (ASX:XJO), which is up 1.3% at the same time.
FY 2024 Financial Performance
Amcor’s share price drop follows the release of its full-year results for the 12 months ending June 30, 2024. Here are the key highlights:
- Net Sales: AU$13.64 billion, reflecting a 7% decrease from FY 2023.
- Adjusted EBIT: AU$1.56 billion, a 1% decline year-on-year.
- Free Cash Flow: AU$952 million, marking a 12.2% increase.
- Quarterly Dividend: 12.5 US cents per share, up slightly from 12.25 US cents per share in the same quarter last year.
Key Factors Impacting Results
The drop in sales has been a significant factor behind the slide in Amcor’s share price. The company reported that positive foreign exchange movements did not fully offset the effects of comparability issues and a 1% negative impact related to the pass-through of lower raw material costs, totaling approximately AU$220 million.
However, there was a silver lining: in the fourth quarter, which ended on June 30, Amcor saw a 1% year-on-year increase in volumes. Despite this positive trend, Q4 net sales of AU$3.54 billion were still down 4% from the same period last year.
For passive income investors, Amcor’s increased quarterly dividend is a notable highlight. Shares must be held until the market close on September 4 to qualify for the dividend, with the stock trading ex-dividend on September 5.
Management Commentary and Future Outlook
CEO Peter Konieczny highlighted several positives from the results, despite the current market reaction. He stated:
"Amcor finished fiscal 2024 strongly, with underlying business improvements in volume and earnings growth. The fourth quarter showed a 9% increase in adjusted EPS, surpassing our April expectations. Volumes grew year-on-year in the quarter as customer demand improved, and our focus on cost management drove strong margin expansion. Free cash flow was at the top end of our guidance range and up 12% from the previous year."
Looking ahead, Amcor has forecast FY 2025 adjusted earnings per share (EPS) in the range of 72 to 76 cents, compared to 70.2 cents per share achieved in FY 2024. The company also anticipates FY 2025 adjusted free cash flow between AU$900 million and AU$1.0 billion, similar to FY 2024 levels.
Share Price Performance
Despite today's intraday losses, Amcor's share price is up 12% year-to-date, reflecting a positive performance overall for 2024.
