By Joseph Carbone
Shares in packaging giant Amcor jump by as much as 3 per cent at market open after the company reaffirmed FY25 guidance and showed flat sales in the first half, in-line with analyst expectations.
The $9.9bn company maintained expectations of earnings per share of 72c to 76c per share and free cash flow of between $US900m and $US1bn.
Net sales for the six months to December 31 hit $US6.6bn, down 1 per cent on the prior corresponding period. Net income for the same period of $US467m was up 3 per cent on the prior period.
Wilsons Asset Management leaders investment analyst Hailey Kim pointed to the end of healthcare destocking and its almost-completed, multi-billion dollar merger with rival Berry as positives for Amcor’s stock volumes and future returns.
“We are pleased to see Amcor’s underlying volumes returning to growth, with management confident that healthcare destocking has largely ended,” she said.
“Berry also delivered solid results … Management has shown greater confidence in its initial synergy targets from the merger. Combined with potential portfolio optimisation, we believe this will drive cash flow upside and earnings accretion for shareholders. Given Amcor’s highly regional business model, we expect minimal impact from tariffs.”
The company also announced a dividend of US12.8c, to be paid on March 13.
AMC last at $16.16, up 2.9 per cent.
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