Organic sales growth of two per cent helped Amcor to a six per cent uptick in sales revenue for the first half of the year, as the company signalled it will continue to invest in growth opportunities.
Flexibles growth was particularly strong in Australia, as well as India and the pan-Asian meat and healthcare markets. Covid lockdowns in China saw volumes lower.
Net sales for the six months to December were US$7.35bn, with a net income of US$691m, up by 62 per cent on the same period last year, although US$210m of this was a one-off from the sale of its Russian operations. The company's adjusted EBIT was up by eight per cent on a comparable currency basis to US$791m. Amcor’s six per cent sale revenue growth included some US$670m of higher raw materials costs, which it passed on to its customers.
Ron Delia, CEO at Amcor said, “We continue to make good progress on our commercial and strategic agenda and our teams are doing an excellent job navigating through volatile market conditions, while recovering general inflation and higher raw material costs.
“Our exposure to consumer staples and healthcare end markets positions our business well, despite some softening in the demand environment and customer destocking through the December quarter.”
In December Amcor sold off its Russian business, and last month entered into the process to buy MDK, a US$50m a year Shanghai-based flexible packaging business focused on the medical sector, with the deal expected to complete by March.
Amcor’s flexibles business saw sales rise from US$5.35bn to US$ 5.59bn in the half year, while its rigids operation achieved an increase to US$1.76bn from US$1.58bn for the prior corresponding period.
Looking ahead Delia said, “Notwithstanding a more cautious near term outlook, we remain focused on executing against our strategy for long term growth. Our ability to generate significant annual cash flow allows us to continue to invest in multiple growth opportunities, pay an attractive and growing dividend and regularly repurchase shares.”
