Packaging giant Amcor has reported healthy figures for the 2022 year and expects continued growth.
Ron Delia, chief executive at Amcor, says, “Fiscal 2022 was another outstanding year for Amcor. Our financial performance accelerated throughout the year as we delivered our strongest quarter in June with organic sales growth of six per cent and adjusted EBIT growth of nine per cent.
“For the full year, strong execution resulted in 1 per cent adjusted EPS growth, at the top end of our guidance range and supported by organic sales growth of four per cent.
“We generated over US$1bn ($1.63bn) in adjusted free cash flow, supporting US$600m in share repurchases and an increase in what we believe is a very compelling dividend.
“This is our third consecutive year of accelerating top line growth, and we expect to sustain this momentum including by stepping up investments in areas such as higher value add priority segments. This gives us confidence the business will deliver another year of strong underlying EPS growth in the range of 7-12 per cent. We also plan to continue returning capital to shareholders while actively exploring opportunities forvalue creating acquisitions across our portfolio.
Value creation
For the financial year 2021/22, Amcor’s net sales rose by 13 per cent, or four per cent on a constant currency basis, to US$14.5bn. In addition, EBITDA rose by four per cent, or seven per cent on a constant currency basis, to US$2.1bn. The company pushed through price rises of 12 per cent during the year. Its costs such as aluminium, films and resin also rose. Net income rose by six per cent, or eight per cent on a constant currency basis, to US$1.2bn.
Delia continues, “Amcor has consistently delivered on our investment case and in fiscal 2022, we added further to the company’s strong track record for long term shareholder value creation.
“The many opportunities we see for continued underlying growth give us confidence in our outlook and we look forward to continuing to deliver on our strategic and financial objectives.”
The company completed its Bemis acquisition to bring “additional scale, capabilities and footprint”. Amcor currently has some 225 plants in operation around the world, but is selling its Russian operation and its three plants there. The company will look at further acquisitions; it has made 30 in the past decade, including the latest, a Czech-based flexibles printer. It has also raised its stake in ePac, the digital flexible packaging printer.
