Amcor (ASX: AMC) has announced its first quarter result for the period to 30 September 2019.
Amcor is a global packaging company. It develops and produces flexible packaging, rigid containers, specialty cartons, closures and services for food, beverage, pharmaceutical, medical device, home and personal care and other products.
Amcor’s First Quarter Of FY20
In GAAP terms, the statutory numbers showed that net sales rose by 38.8% to US$3.14 billion and profit / earnings per share (EPS) fell by 5.2%. The prior numbers only include Amcor’s numbers (and not the acquired Bemis numbers).
But the adjusted numbers might give a more realistic view of the results and includes Bemis.
Adjusted sales fell by 2.6% to US$3.14 billion, adjusted EBIT (click here to learn what EBIT means) rose 8.1% to US$335.1 million and adjusted net income (profit) increased 13.4% to US$218.1 million. Adjusted EPS also rose 13.4% to US 13.4 cents.
Amcor said during the quarter the business performed well with volume and sales growth in North America and Western Europe.
Speaking of Bemis, management said that the integration is progressing well and it’s on track to deliver $180 million of pre-tax cost synergies over three years with $65 million in the 2020 year.
Amcor CEO Ron Delia
said: “Amcor’s fiscal 2020 is off to a solid start with strong financial results in the first quarter in line with our expectations.
“We are encouraged by the momentum in the base business, the initial synergy contribution from the Bemis acquisition, and continued progress on our sustainability agenda.”
Quarterly Dividend And Buyback
Amcor announced a quarterly dividend of US 11.5 cents per share, or AU 16.7 cents for ASX investors. This dividend amounts to a annualised yield of 4.7%.
The packaging company said that it has repurchased 5.8 million shares in the quarter with Amcor undertaking a US$500 million buy-back.
Outlook
Amcor reaffirmed its expectations for adjusted EPS to grow by 5% to 10% in constant currency terms.
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