Global packaging manufacturer Amcor says it is starting to see a turnaround in recent tough trading conditions caused by higher raw material costs in some markets after reporting a 21% jump in full-year net profit in its last year as an Australian-based company.
Amcor is in the process of taking over US packager Bemis in a $9 billion deal that will see Amcor relocate its domicile to the US.
CEO Ron Delia said there are "early indications" in the new financial year that short-term challenges in the packaging industry had started to stabilise.
"Volumes in the North American beverage segment have modestly improved, earnings headwinds in some regions have started to slow as higher raw material costs are passed through and emerging markets organic growth improved in the second half to four per cent," Mr Delia said in a statement.
Amcor’s net profit rose to $US724 million for the year ended June 30, with sales revenue up 2.4% to $US9.32 billion.
The shares fell 3.6% to $13.76. Amcor shares are down 7% in the past month as investors worry about the cost of the Bemis deal and the company’s shift to the US.
Amcor will pay a final dividend of 24 US cents, up up from 23.5 US cents a year earlier.
This brings the dividend for the 2018 financial year to 45.0 US cents per share, 2.0 US cents or 5% higher than 2017.
The final dividend will be paid in Australian dollars and will be 32.65 cents, 9.4% higher than the final dividend paid last year.
This reflects the final dividend declared in US dollars converted at an exchange rate of 0.7350. This rate is the average exchange rate over the five days ending 14 August 2018.
In its rigid plastics division, which makes bottles for drinks and other plastic containers, Amcor’s sales revenue slipped to $US2.78 billion, down from $US2.88 billion in 2016/17.
The flexibles business, which makes plastic films and other flexible packaging for food and beverages, pharmaceuticals and consumer goods, saw revenue rise to $US6.5 billion, up from $US6.2 billion in 2016-17.
