On Wednesday, global packaging company Amcor [ASX:AMC] released its results for the first quarter of 2023.
Amcor said it passed on $400 million in price increases during the quarter as it sought to recoup higher raw material costs.
While net sales rose, Amcor’s bottom line was affected by a strong US dollar.
AMC shares were down 4% late on Wednesday.
Amcor is up 8% over the past 12 months.
Source: Trading View
Amcor’s Q123 Results
On Wednesday, Amcor presented its first quarter results for the new financial year, a quarter plagued with supply chain issues, lingering COVID lockdowns, and rising inflation.
These were the highlights:
- ‘Net sales of US$3,712 million, up 9%;
- ‘GAAP Net income of $232 million, up 15%; GAAP earnings per share (EPS) of 15.5 cps, up 18%
- ‘Adjusted EPS of 18.1 cps, up 10% on a comparable constant currency basis
- ‘Adjusted EBIT of US$392 million, up 9% on a comparable constant currency basis
- ‘Quarterly dividend increased to 12.25 cents per share
- ‘Fiscal 2023 outlook: Reaffirmed adjusted EPS growth on a comparable constant currency basis of 3-8%. Updated adjusted EPS on a reported basis to 77-81 cps to reflect further strengthening of US dollar. Reaffirmed adjusted Free Cash Flow of $1.0-$1.1 billion’
AMC’s free cash outflow totalled US$400 million, in comparison with US$242 million at the same time last year.
The company’s net debt totalled $6,393 by the end of September.
CEO of Amcor Ron Delia commented:
‘The result demonstrates the relative stability of our end market exposures, our relentless focus on recovering higher raw material costs and general inflation, and our proactive approach to driving costs out of the business. Our consistent execution has enabled us to generate strong organic earnings growth in a volatile and challenging operating environment and gives us confidence in our ability to achieve our adjusted EPS and free cash flow outlook for the FY23 year.
‘We remain focused on executing against our strategy for long term growth. Amcor consistently generates significant annual cash flow, providing substantial capacity to reinvest for future growth and to return cash to shareholders through an attractive and growing dividend and regular share repurchases. We believe the strength of our underlying business, proven execution capabilities and capital allocation framework position us well to deliver strong and consistent value for shareholders and supports our compelling investment case.’
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Regards,
Kiryll Prakapenka,
