Profit after tax for global packaging company Amcor increased by 1 per cent for half year, while sales down by 1.8 per cent, as the company pulled out of Venezuela.
The half year results for Amcor show a rise from the prior year in profit after tax (PAT) to $308.6m, however sales for the HY were down by 1.8 per cent from the previous year from US$4.5bn to US$4.46bn, but on a constant currency basis they were down by 0.6 per cent.
The dip in sales reflects in the economic climate in Venezuela causing Amcor to remove the company from the South American country in June.
The statutory profit was down to US$286.6m from $305.5m. The company claims momentum was strong with PBIT and EPS growth at 9 per cent and 12 per cent respectively, after adjusting for Venezuela, where the company has eliminated its financial exposure.
[Related: Amcor in Chinese acquisition]
Amcor says, important steps were also taken against our strategic priorities with investments in the Alusa and Sonoco acquisitions and restructuring initiatives in the flexibles segment.
Ron Delia, managing director and CEO, Amcor says, “Amcor has delivered a solid half year result and the full year expectation for growth in profit after tax remains unchanged. Our business remains well placed for the current global environment and for the long term.
“Growth in PBIT and EPS was 3.5 per cent and 4.6 per cent respectively in constant currency terms. More importantly, the business delivered PBIT growth of 9 per cent and EPS growth of 12 per cent in constant currency terms after adjusting for Venezuela, where we have eliminated our financial exposure.
“The half year also demonstrated the benefit of our broad geographic diversification, including having a presence in every major region around the world. Across our diverse footprint, we saw growth in developed markets this period offsetting challenges in some emerging markets.”
Cash flow and the balance sheet remain strong and provide the capacity to invest further in the substantial growth opportunities in attractive segments where Amcor’s businesses are positioned. Amcor operates more than 200 plants in over 40 countries and is not reliant on either imports or exports.
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