Amcor weathers higher cost environment and reaffirms full-year guidance

Wed 02 Feb 22, 9:52am (AEST)
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Source: iStock

Key Points

  • Amcor confirmed its full-year guidance after a strong first half
  • Margins remained resilient despite higher raw material costs
  • Dividends edged higher while an additional US$200m in share repurchases was declared

Amcor (ASX: AMC) shares have been relatively unphased by the market’s recent selloff, and that tenacity has been reflected in today’s half-year FY22 earnings. 

Key highlights in the first half include: 

  • Sales up 12% to US$6.9bn 

  • Earnings up 5% to US$769bn 

  • Earnings per share (EPS) up 8% to 35.8 cents (up 9% on constant currency) 

  • Reaffirmed FY22 EPS growth between 7-11%

Amcor CEO Ron Delia said the results were "solid" amid a persistently challenging operating environment. 

“We implemented a broad range of actions to recover higher input costs and manage through general inflation,” said Delia. 

“The Amor investment case has never been stronger and we are increasing investments in premium segments like healthcare and protein, in emerging markets and in our innovation capabilities to drive growth and margin expansion.” 

Amcor declared a quarterly dividend of 12 US cents per share (16.85 cents Aussie), up 2% compared to last year. The company’s stock will go ex-dividend on Tuesday, 22 February.

Amcor will be putting its free cash flow to good use, declaring an additional US$200m share buyback. The company expects to repurchase US$600m worth of shares in FY22.  

Right on target 

Morgans’ was expecting EPS on a constant currency basis to be up 9% in the first half.

Prior to today’s earnings release, the broker said that Amcor “has been a very good performer throughout the pandemic due to its defensive characteristics and strong cost out performance.”

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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