Packaging giant Amcor saw its profit after tax and before significant items for 2102/13 reach almost $2m a day to $689.5m, up 8.6 per cent on the previous year. The figure would have reached 10.8 per cent if the falling Aussie dollar hadn’t impacted the profit figures, which took a $13.8m hit on currency factors.
The company’s shareholders were well rewarded, with dividend raised by 8.1 per cent to 40c per share. Earnings per share before significant items increased 9.4 per cent to 57.2 cents per share. On a constant currency basis, earnings per share increased by 11.5 per cent. In announcing the result, Ken MacKenzie, managing director and CEO says, “The full year result represents another period of higher profits and returns. “The key drivers of higher earnings were the benefits from recent acquisitions, ongoing growth from our businesses in emerging markets and continued improvement in operating performance.” Commenting on business segment performance, MacKenzie says: “The Flexible Packaging segment had a strong year with profit up 11.9 per cent and record returns of 24 per cent. The operating sales margin increased from 11.2 per cent to 11.6 per cent which is an outstanding achievement and reflects the benefits from recent acquisitions and strong growth in emerging markets. “The Rigid Plastics group had a solid year with earnings up 5.2 per cent and returns of 16.9 per cent. The business secured substantial new volumes in both the beverage and diversified products segments that will contribute to future earnings growth. “The Australasian and Packaging Distribution business achieved a solid result. The fibre operations had higher earnings driven by improved operating performance and the benefits from recent cost reduction initiatives.” “The new recycled paper mill at Botany in NSW commenced commisioning in October 2012 and the start up is proceeding well. This is a world-class machine that will deliver $50 million in cost benefits over the next few years.” McKenzie says Amcor is well positioned to deliver continued earnings growth, particularly through its focus on new markets. He says, “The business has a comprehensive footprint in emerging markets that has consistently delivered solid growth in both sales and earnings. We have expanded our exposure to these markets over the past 12 months through new capital projects and acquisitions. These investments underpin the commitment to continually improve value for our customers and will also deliver benefits for Amcor shareholders. “In Australasia, the business has had more than $1bn of new investment over the past four years, creating low cost positions in our chosen product segments. The benefits from this capital expenditure combined with a number of new cost reduction initiatives underpin the opportunity for future growth. Not surprisingly MacKenzie gave an upbeat assessment of the outlook for Amcor, he says, “This is an exciting time for Amcor. Each of the business segments is expecting to deliver increased earnings in the current year and the strong cash flow generation will ensure there is the opportunity to deliver further growth in shareholder value.”
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