Australian-US packaging giant Amcor has reaffirmed its 2021-22 financial outlook after reporting that earnings rose in the three months to September, despite a sharp rise in raw material costs.
In its quarterly report yesterday, Amcor said that net sales rose 10% to $US3.42 billion on a reported basis, with most of that 10% due to price increases of approximately $US285 million related to the pass through of higher raw material costs.
“On a comparable constant currency basis, net sales were 1% higher than the same period last year,” the group said in the quarterly report.
Adjusted EBIT of $US381 million was 7% higher than last year on a comparable constant currency basis.
The company declared a dividend of 12 US cents a share and reaffirmed that it expects adjusted earnings per share growth of 7% to 11% on a comparable constant currency basis for the year to June 30.
“Amcor delivered a solid first quarter result in line with our expectations as our teams executed well in an environment of broad supply chain disruptions,” Amcor CEO Ron Delia said in a statement with the report.
“While sales were tempered in some parts of the business by raw material shortages, we prioritised as much as possible security of supply for our customers, recovery of higher input costs and sales mix management.
“We held margins flat in our Flexibles segment and navigated through a particularly dynamic and complex environment in the Rigid Packaging business to deliver another quarter of double-digit EPS growth.
“As a result, we are confident in our ability to meet our earnings growth and cash flow expectations and reaffirm guidance for the full 2022 fiscal year.”
The solid result saw Amcor’s securities rise 0.75% to $16.11.
