This morning, Amcor PLC (ASX: AMC) delivered its full-year FY20 results to investors, showing a 1.8% decline in net sales to US$12.47 billion (currency-adjusted).
The packaging company’s operating profit or EBIT came in at US$1.5 billion, up 6.7% over the prior corresponding period (again, currency-adjusted).
These results have also been adjusted to account for the company’s acquisition of Bemis, which was completed on 11 June 2019. For comparative purposes, Amcor presented pro forma FY19 results as if the Bemis acquisition had been completed on 1 July 2018.
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Dividends on the rise, Bemis delivers synergies
“2020 has been a milestone financial year for Amcor during which we delivered outstanding financial results ahead of the upgraded guidance provided in May,” CEO Ron Delia said.
“Profit and Cash Flow were significantly higher than last year and supported continued capital investment, an increase in our dividend and the repurchase of 3.5% of shares outstanding.”
This morning, Amcor declared a dividend of 11.5 US cents per share, consistent with the other quarterly dividends declared throughout FY20. ASX shareholders will receive an unfranked dividend of 16 cents per share.
This takes full-year dividends to 46 US cents per share, slightly higher than the 45.5 US cents per share dividends declared in FY19. Using a USD/AUD exchange rate of $1.38, Amcor shares are currently trading on a dividend yield of around 4%.
Additionally, Mr Dalio said that the benefits from the transformational acquisition of Bemis were increasingly evident throughout the year.
“We made excellent progress in this first year of integration, with cost synergies almost 30% higher than original expectations and performance across the combined flexibles packaging business building momentum.”
Delia added: “We expect that momentum to continue to build as we leverage the broader geographic diversification, increased scale and unique capabilities that result from the acquisition.”
What next?
Looking forward, Mr Delia said the company remains well-positioned to continue delivering consistently strong shareholder returns.
“For fiscal 2021, we expect free cash flow of over $1 billion and EPS growth of 5-10% driven by continued organic growth from our defensive consumer end markets, additional cost synergies and a lower share count resulting from shares already repurchased.”
In other news today, the WiseTech Global Ltd (ASX: WTC) share price soared 34% as the logistics solutions company announced its FY20 results. Investors weren’t as keen on the a2 Milk Company Ltd
