Global packaging giant Amcor achieved a 16 per cent growth in sales in the third quarter, although that was five per cent on a constant currency basis, as all its figures beat estimates.
Sales in the third quarter reached US$3.7bn, earnings per share were up by 15 per cent on a constant currency basis, while for the nine months of this financial year so far net sales are up by 13 per cent to US$10.6bn, and EBIT is up by six per cent on a comparable constant currency basis to US$1.2bn.
Shareholders are in for a treat with the earnings per share outlook for the full financial year raised by between 9.5 per cent and 11 per cent.
Amcor CEO Ron Delia said: "Amcor has consistently demonstrated the ability to execute exceptionally well, remain focused on our strategic priorities and deliver for our customers. The business has delivered another strong result with March quarter net sales growth accelerating to five per cent, contributing to 15 per cent adjusted EPS growth in the quarter, and 11 per cent on a year to date basis.”
Delia said the company had been fully focused on managing supply chain issues and inflationary pressures, he said, “Across our business we have continued to focus on sales mix management and to prioritise security of supply for customers. At the same time, our teams have acted quickly and decisively, implementing a range of pricing actions through the year to manage inflation and recover higher input costs. As a result, both the Flexibles and Rigid Packaging segments achieved their strongest earnings growth for the year in the March quarter."
Outlining the current priorities he said, “We are capitalising on a range of attractive opportunities and increasing investments in priority segments such as healthcare and protein and in our innovative, more sustainable product platforms, which are expected to drive stronger growth, margin expansion and long term value creation for all stakeholders."
For the March quarter, net sales for the Amcor Group of US$3.7bn reflected a strong price/mix benefits. Adjusted EBIT for the March quarter of US$427m was nine per cent higher than the same quarter last year on a comparable constant currency basis.
Year to date net sales for the Amcor Group increased by 13 per cent on a reported basis, which includes price increases of approximately US$1.1bn (representing 12 per cent growth) related to the pass through of higher raw material costs and a combined unfavourable impact of two per cent related to items affecting comparability and currency.
Year to date net sales were per cent higher than the same period last year on a comparable constant currency basis. Overall year to date volumes for the Amcor Group were one per cent higher than the same period last year and price/mix had a favorable impact on net sales of per cent. Year to date adjusted EBIT of US$1.2bn was six per cent higher than last year on a comparable constant currency basis.
Flexibles sales were up by three per cent on constant currency basis to US$8.2bn, while Rigids were up by five per cent on the same basis to US$2.45bn.
