Packaging giant Amcor (AMC) is maintaining its interim dividend after the stronger US dollar flattened revenue and income in the six months to December 31.
The stronger greenback saw net profit in the December half dip 4.9% from a year ago.
But the company has maintained an interim dividend of 19 US cents a share, which will be paid on March 22.
Amcor said yesterday net earnings fell to $US305 million ($A428.9 million) for the six months to December 31, compared with $US321.3 million a year earlier.
Group revenues fell 5.4% to $US4.55 billion.
The company said that on a constant currency basis (adjusted for the various changes in the half year compared with the previous corresponding half), profit after tax rose 6.6% to $US342.6 million.
Investors liked the figures and some of the positive comments from management and sent the shares up more than 9% to $13.40 yesterday.
AMC 1Y – Amcor upbeat despite flat result
Chief executive Ron Delia said the business was performing strongly. "Cash generation was sold and returns remained above 20 per cent,” he said.
"All Amcor business units performed well during the half year. The key drivers of strong earnings growth were higher volumes in both the rigid plastics and tobacco packaging business.
“There were also benefits from recent acquisitions and continued improvement in operating performance. “Earnings per share, on a constant currency basis increased 10.2% reflecting strong profit growth and the benefit of a US$500 million share buy-back completed during the period. Cash generation was solid and returns remained above 20%,” Mr Della said.
“All Amcor business units performed well during the half year. The key drivers of strong earnings growth were higher volumes in both the Rigid Plastics and Tobacco Packaging businesses. There were also benefits from recent acquisitions and continued improvement in operating performance.
“Since 30 June 2015, the business has announced or completed six acquisitions in the USA, South Africa, Brazil, China and India. This is an important component of Amcor’s grow the strategy and we continue to find opportunities that deliver strong value for shareholders.
“Amcor has a strong foundation to build on, and an excellent track record of ongoing improvement. Amcor is well positioned in an increasingly dynamic world and has substantial opportunities to leverage the existing portfolio to generate growth,” Mr Della said yesterday.
