Shares in packaging giant Amcor (AMC) jumped more than 6% at one stage in yesterday morning’s mad stockmarket fall after the company beat market analysts, but revealed a sharp rise in final dividend because of the weaker Aussie dollar.
The shares leapt to $6.29, before retreating over the rest of the day to close up 4.3% at $13.05 after the market turned tail and sprinted higher for a 2.6% gain for the day.
Amcor said it will pay a full-year dividend of 53 Australian cents, a 23.3% lift compared to 2014, on September 9.
Annual dividend was set in US dollar terms at 40 cents a share, unfranked, up marginally from 2013-14. The final dividend is 21 US cents a share, unfranked.
The company said the final dividend will be paid in Australian dollars. The amount received will be 28.6 cents, reflecting the dividend declared in US dollars converted at an exchange rate of 0.7353.
"This rate reflects the average exchange rate over the five days ending 18 August 2015,” the statement explained.
Amcor reported net profit of $US680.3 million ($A946.09 million) for the 12 months to June 30, up just 0.4%, including the negative impact of the higher US dollar. Excluding currency swings, profit rose 7.2%.
Revenue, however, dipped 3.5% to $US9.61 billion ($A13.36 billion).
CEO Ron Delia told investors the company expected higher earnings in the next 12 months.
He said the company had a strong balance sheet and it had completed 60% of the $US500 million buyback announced with the interim figures in February.
"Amcor has a very strong foundation … and has substantial opportunities to leverage the existing portfolio to generate growth," Mr Delia said.
"Over the past 12 months there have been a number of growth initiatives. These include acquisitions in South Africa, Brazil, China and India, as well as new Greenfield plants announced in the Philippines and Indonesia."
He said continued growth in North and South America fuelled the gains in the rigid plastics division, with higher volumes in all the main product segments.
