Packaging giant Amcor record a flat profit growth for first half of 2015 of 0.4 per cent, but on a constant currency basis it was up by a healthy 7.2 per cent on the previous year.
On the constant currency basis its profits after tax was US$726.9m, but its actual profit was $680.3m, up from $677.8m last year. Sales revenue was down 3.5 per cent in actual terms although up by two per cent on constant currency basis, 2015 came in at US$9.61bn compared to US$9.96bn last year.
Amcor chief executive Ron Delia.
Ron Delia, Amcor managing director and CEO says that, while the company revenue for Australia was flat, which he says is similar to other first world countries, its heavy investment over the past 12 months in South Africa, Brazil, China, India, the Philippines, and Indonesia has paid off.
He says, “The full year results represent another year of higher profits and returns despite a depreciating Australian dollar. Earnings per share, on a constant currency basis, increased by 7.5 per cent, and dividend, in Australian dollar terms, increased by 23 per cent to 53 cents.”
“The key drivers of the increased earnings were the benefits from recent acquisitions and continued improvement in operating performance.”
He says future key elements that will ensure the company continues to grow include focusing on emerging markets, increasing customer intimacy, and grabbing opportunities to transfer innovation from one market to another.
Delia says, “It is time for evolution not revolution where we cash the opportunities in front of us. We also need to be self sufficient and generate our own growth. This means we will increase our customer intimacy and make sure that customers know that we are keen to do business with them. We are also focusing on increasing our operating agility to reflect the environments we are working in as well as adopting new talent. While we already have an excellent talent pool, there is always room for more to grow our business.”
Amcor recently moved a large number of jobs from its Melbourne HQ to Switzerland, with reports the company may also move its entire head office out of the country soon. However, Delia says while Australia only accounts for just five per cent of the entire company the relocation of its head office does not mean it will move out of Australia. He says, “Our presence in Australia is important as we are the market leader in rigid plastics as well as being listed in the Australian exchange, which gives us a great source of equity market. So it makes sense for us to stay in Australia.”
