Packaging solutions giant Amcor has released its half-yearly financial report ending December 31, 2015 showing positive results for the company, with a four per cent growth in developed markets and profit after tax up 6.6 per cent compared to the first half of 2015.
r volatile’ economic conditions.
Commenting on the results, Amcor chief executive Ron Delia says despite operating in less than ideal economic conditions, the company must do everything it can to generate growth.
He says, “We are seeing a lot of markets fairly subdued and with reasonable volatility which proves the resilience of our business… Even in a period where there is trouble throughout the world we have shown a good result.”
Ron Delia, CEO of Amcor
Delia says the greatest influencer of growth during this period was Amcor’s rigid plastics sector, which jumped 10.4 per cent in PBIT, and also an increase in demand for tobacco packaging in Europe.
Although he expects tobacco demand to wind down in future, Delia says, “Tobacco had an excellent first half particularly in Europe and this came down to two factors, the first was pending tax increases which led to customers buying inventory ahead of those tax increases.
“The second was in Western Europe, which has new incoming regulations on tobacco packaging, called the Tobacco Packaging Directive and it comes into effect in May. Customers, in anticipation, have started to fill inventories.”
The report stated the company’s solid cash flow during the second half of 2015 enabled a dividend of US0.19cents, completion of US$500m on-market share buy-back and six new acquisitions.
The company has also announced it will open three new plants: a tobacco packaging plant in Indonesia due for completion in June 2016; a new flexible packaging plant to be completed at the same time in the Philippines; and a rigid plastics facility in the US which commenced construction late last year.
Delia expresses confidence in Amcor’s future, with its opportunities for growth and financial capabilities to pursue them. He concludes, “We have a strong foundation to build on, none of this has or will change, we will continue to improve.”
