Finance Finance News Amcor profits up on growth, acquisitions

Amcor profits up on growth, acquisitions

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Global packaging giant Amcor’s half year profit has jumped more than 20 per cent to $326 million.

The company has put the increase to December 2013 down to strong growth in emerging markets, improvements to operations and benefits from recent acquisitions.

After significant items, its profit was down 30.1 per cent to $159.3 million.

During the first half, Amcor demerged its Australasian and Packaging Distribution operations and created a separately-listed company, Orora Limited.

“The demerger will enable both companies to be more focused on their respective end markets and better positioned to deliver further improvements in customer value,” chief executive Ken MacKenzie said in a statement on Tuesday.

“Volumes across developed markets were generally stable and there was continued solid growth in emerging markets.

“China, one of our larger emerging market exposures, achieved sales growth of 18 per cent of which 11 per cent was underlying organic growth and seven per cent was from acquisitions.”

Amcor’s flexible packaging operations increased earnings by seven per cent.

Mr MacKenzie described Amcor’s outlook as exciting.

“Amcor has an exciting growth agenda through both organic growth and acquisitions,” he said.

“Over the past six months, there have been a number of acquisitions announced that will deliver earnings growth over the next few years.

“It is expected Amcor will deliver another year of higher underlying profits in the current year.”

Amcor’s 21.2 per cent profit rise to $326.6 million compares to $269.4 million profit for the same period in 2012.

The company declared an unfranked interim dividend or 19.5 cents per share, unchanged from the previous year.