The world’s biggest packaging business Amcor achieved a profit from ordinary activities after tax but before significant items of $671.1m (all figures in US$) for the 2105/16 year, exactly the same as last year, but the company says measured on a constant currency basis profits rose by 7.5 per cent.
It sales of $9.42bn were down two per cent on last year, but similarly the company says on a like for like currency basis they were up by 3.7 per cent.
The US dollar – in which Amcor prepares its results – rose eight per cent against the Euro, and by 14 per cent against a basket of other currencies during the year.
Returns – measured as profit before interest and tax – to average funds employed surged past 20 per cent for the first time, hitting 21.6 per cent.
Net profit however took a major hit due to a pre-announced impairement on its Venezualan business, it dropped 64.1 per cent to $244.1m in the year to June 30, compared with $680.3m in the previous year.
Net debt increased by 25 per cent to $3.83bn due to the funding of acquisitions, of which Amcor made eight during the year across the world.
The downturn in sales revenue was in the flexibles side of the business, which was at $6.06bn compared with $6.29bn the previous year. Rigid plastics increased sales from $3.32bn to $3.56bn.
Its Australian flexibles business were in line with last year. The company says the benefits of higher volumes were offset by ‘an unfavourable’ product mix.
Ron Delia, CEO at Amcor says, “Amcor reported a strong full year result with growth in earnings, returns and cash flow, delievered ina challenging macro-economic environment.
“Growth was solid in both developed and emerging markets, there was a mix of growth from organic sources and from acquisitions, and both the flexibles and rigid plastics segments achieved higher results than last year.”
Shares rose by 3.4 per cent per cent to $15.82 in mrning trade on the release of the figures.
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