Hot fill beverages help boost Amcor returns May 6, 2021 [IMG]...

Hot fill beverages help boost Amcor returns

May 6, 2021


Strong financial results in its latest quarter has triggered packaging converter Amcor to raise its fiscal 2021 outlook for adjusted earnings per share (EPS) growth to 14-15 per cent (from 10-14 per cent).
The company posted net income of $684 million for the quarter, up 58 per cent, while EPS was up 63 per cent to $0.43. Adjusted EBIT was $1.14 billion, up 9 per cent on a comparable constant currency basis, while the company also reported cost synergies of $55m from the Bemis flexible packaging business acquisition in 2019, which are expected to rise to $70m for the full year and $180m by end of fiscal 2022.
Amcor’s chief executive, Ron Delia, said: “Amcor is maintaining momentum and executing well in the face of a dynamic operating environment. As a result, we delivered strong year-to-date performance and we are raising our full year adjusted EPS growth.”
“Delivery of cost synergies related to the Bemis acquisition continues to progress ahead of original expectations leaving us well positioned to exceed the original target with at least $180m of pre-tax benefits by the end of fiscal 2022.”
“We are actively investing in the future, expanding capacity in higher value segments and higher growth markets and increasingly using open innovation and now corporate venturing to identify new avenues of growth. Growth investments like these, along with continued strong execution, will enable continued momentum and reinforce our belief that the Amcor investment case has never been stronger.”
In North America, year-to-date volume growth in the low single digit range was mainly driven by strength in the meat, frozen food, pet food, condiments and fresh food end markets as well as specialty folding cartons. This was partly offset by lower healthcare, home and personal care and confectionary volumes.
Beverage volumes were 7 per cent higher than the prior period with hot fill container volumes up 13 per cent. Consumer demand has continued to be strong, particularly in hot fill juices, hot fill ready to drink tea and hot fill sports drinks. Strong consumer demand reflects higher at home consumption of packaged beverages supported by higher retail sales in multi-pack formats across a range of product categories. Growth was also driven by brand extensions and the introduction of new health and wellness oriented products in PET containers. Specialty container volumes were also higher than the prior period with growth in certain categories including spirits, personal care and home cleaning.
In Europe, year-to-date volumes were in line with the same period last year with higher volumes in cheese, coffee and ready meal end markets offset by lower yoghurt and healthcare volumes.
Year-to-date volumes grew at mid-single digit rates across the Asian emerging markets, with double digit growth in both China and India, partly offset by lower volumes in South East Asia. In Latin America, year to date volumes grew at low single digit rates compared with the prior period.