Ann: Form 8-K - Q3 22 Results, page-2

To my mind, this is a very very good result. Anything but boring, which is what I called the previous half year results!

Any slowdown in growth has been because of currency fluctuations (which is more a US reporting issue than for us in Aussie, as it's improved the results in AUD). This is why net income only grew 2% on a statutory basis, but grew 4% on a per share basis due to the share buy backs. Amcor has bought 2.3% of the outstanding shares in the past 9 months - that's pretty phenomenal!

The big takeaway from this report is that despite supply chain disruptions which has negatively impacted some of their segments, they have still grown revenues. Net sales up 13%. This is for three reasons - one they have managed the supply chain situation very well, two they are well diversified across segments and regions, and thirdly they have PRICING POWER.

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.

Currently trading at a very reasonable price of PE=15 or EV/FCF of 4.6% yield. Considering the outlook of EPS growth of 9.5-11% (to ~80c US per share), I reckon that's good value. Overall pretty happy, and the US market bumped them up +2.3% on the back of these results.