The company said it expected to reap about $50 million of savings once its new paper plant in the Sydney suburb of Botany was fully operational. The $550 million plant will produce lightweight recycled grades for packaging.

The projected net cost of the mill has increased by $20 million and the commissioning date has been pushed back from July to September.

The site is scheduled to reach full capacity 18-24 months later and produce large savings in energy (34%), water consumption (26%) and landfill (75%).

Amcor’s net profit rose 15.7% year-on-year for the 12 months to 30 June 2012, although revenue fell 1.8% to $12.2 billion and net debt worsened by 11.3% to $3.6 billion.

The company attributed the climbing debt to the increased spending on the Botany mill and the $238 million acquisition of Aperio Group.

It also blamed the high Australian dollar for wiping away $35 million of profits.

The Australasia and Packaging Distribution division boosted sales by 1.3% to $2.9 billion, but pre-tax profits fell 4.5% to $153 million and operating margins declined from 5.6% to 5.3%.

Amcor reported “stable volumes in beverage cans, cartons, corrugated boxes and glass”.

“Given the uncertain outlook for the Australian economy and the ongoing adverse impact of the high Australian dollar, earnings in the Australasian and Packaging Distribution business in the 2012-13 financial year are expected to be in line with the 2011-12 financial year.

“It is anticipated that the business will build momentum during the year as second-half earnings will benefit from the start-up of the new paper mill at Botany.”

Australia and New Zealand contributed 19% of Amcor’s revenue with the balance coming from North America (33%), Western Europe (29%) and emerging markets (19%).

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