The news: Global packaging giant Amcor has posted a drop in full-year profit but outlined earnings and volume growth for FY25 after an improved performance in the fourth quarter. The numbers: Net income for the year to 30 June fell 7% to US$1.02 billion ($1.54 billion), while net sales were down 7% to US$13.64 billion. Adjusted earnings per share was down 4% from a year ago to 70.2 US cents but was within the company’s guidance range of 68.5 to 71 US cents.
Amcor will pay a quarterly dividend of 12.50 US cents, taking its full year payout to 50 US cents, up from 49 cents a year ago. The context: Interim CEO Peter Konieczny said Amcor finished the fiscal year strongly, delivering volume and earnings growth quarter-on-quarter, as volumes returned on the back of improving customer demand and the focus on managing costs drove strong margin expansion.
The company had faced lower customer demand as well as significant destocking in both North America and Europe, particularly during the first half of the year.
For fiscal 2025, Amcor expects volumes and earnings to grow and adjusted free cash flow to remain strong, with earnings per share guidance of 72 to 76 US cents per share. What they said: "We believe our underlying business and market positions are strong and we will continue to invest for organic growth, pursue acquisitions or repurchase shares and return cash to shareholders through a compelling and growing dividend," Konieczny said. The sources:Amcor media release, Jarden research
10:51am yesterday
Amcor shares drop after tepid full-year results
More news: Shares in Amcor fell 2.1% to $15.80 after the packaging giant reported a bigger-than-expected decline in fourth-quarter sales, hurt by weaker demand for its containers and cartons.
Quarterly sales dropped 4% to US$3.54 billion against expectations of a 1% decline.
Jarden analyst James Wilson said while the overall result was in line, there was clarity needed on the FY25 guidance. The brokerage has an 'overweight' rating on the stock with a price target of $16.35. What they said: "Given improving volumes momentum over FY24, we think Amcor's issued FY25 guidance remains conservative, particularly given it also includes the benefit of lower net finance costs," he said in a note.
AMC Price at posting:
$15.69 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)