Packaging giant Amcor sees an increase in profit and earnings per share in its 2017 full-year results, despite a decrease in its sales revenue from 2016 figures.
Sales revenue for 2017 is US$9.1bn, down 3.4 per cent, or 2 per cent on a constant currency basis, from the prior corresponding period (pcp) result of US$9.4bn. PBITDA is up 2.7 per cent, reaching $1.44bn, while PBIT is up 3.1 per cent to US$1.08bn.
Underlying profit after tax increased 4.5 per cent from the pcp, at US$701m, while statutory profit after tax more than doubled from last year’s result of US$244m, reaching US$597m.
Earnings per share are up 10 per cent on a constant currency basis, with the annual dividend per share increased to 43 US cents. Amcor notes its strong cash flow in the conclusion of 2017, $US245m. The suits were satisfied with Amcor’s share pricing trading up by three quarters of one per cent on the news.
Flexibles saw sales revenue increase by three per cent to US$6.23bn while Rigid Plastics sales revenue slumped down by almost 20 per cent to US$2.88bn.
Ron Delia, CEO, Amcor says, “Amcor’s strong full-year results reflect the progress we have made on our strategic investments and the benefits of our broad mix of geographic exposures. Underlying PBIT and EPS grew nine and 10 per cent respectively on sales growth of four per cent for the year. Cash flow was at the high end of our expectations.
“Balanced earnings growth from a variety of sources again demonstrated the resilience of Amcor’s business and management teams. Earnings were up strongly in both the Flexibles and Rigid Plastics segments, driven by organic growth and acquisitions. Across developed markets, earnings grew at rates which exceeded overall market growth. In emerging markets, we delivered increased earnings in the face of difficult conditions in several countries.
“Important progress was made against our strategic priorities with investments in the Alusa and Sonoco acquisitions and the proactive restructuring initiatives in the Flexibles segment. Together these investments contributed around US$60m to PBIT and they will underpin more than US$100m of additional PBIT growth over the next three years, in addition to organic growth and further M&A.
“Our cash flow and balance sheet remain strong, enabling us to continue to reinvest in the business and to increase the dividend paid to shareholders. Looking forward, Amcor has substantial growth potential. We have significant opportunities to increase our presence and scale in attractive market segments where we are underrepresented today, and a strong track record of generating long term value from these types of opportunities.
“We expect another strong year in 2018, with after tax earnings growth in constant currency terms and strong cash flow. Amcor remains very well positioned to continue delivering against our value proposition for shareholders – the consistent delivery of 10 to 15 per cent of additional value each year.”
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