Australia-based Amcor, specialist in flexible and rigid packaging for the food, beverage, health care, and tobacco industries, has reported 3.4% decrease in its sales revenue to $9,101m for the fiscal year ended 30 June 2017, compared to $9,421m in the same period last year.
Statutory profit for the year ended 30 June 2017 was US$597.0 million.
Underlying profit(1) for the year ended 30 June 2017 was US$701.2 million.
Highlights – underlying earnings unless otherwise indicated(1)(2)
Profit after tax (PAT) of US$701.2 million up 9.6%(3) on a constant currency basis;
Earnings per share (EPS) of 60.6 US cents, up 10.1%(3) on a constant currency basis;
Strong returns, measured as profit before interest and tax to average funds employed of 20.4%;
Strong free cash flow of US$245.3 million(4); and
Annual dividend per share increased to 43.0 US cents.
Strong result for the 2017 financial year
Amcor’s CEO Mr Ron Delia said: “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 9 and 10 percent respectively on sales growth of 4 percent for the year, and 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$60 million to PBIT and they will underpin more than US$100 million 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 percent of additional value each year.”