"It has been debateable whether Amcor does indeed have pricing power. Well, this quarter has proven without a doubt that they do. They have increased prices while maintaining volume and margins. Amcor is leveraged to the consumer / consumption side of the economy, and so even in a decline will still do alright. And they are a hedge against inflation because they can pass on the rising costs."
Spot on.
NPAT growth:
DH2021: +6%
MQ2022: +8%
So, accelerating earnings growth in the face of rampant input costs.
You need to be able to re-price quite promptly at the front end of your business in order to report that sort of outcome.
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AMC Price at posting:
$16.74 Sentiment: None Disclosure: Held
(20min delay)