Plastic packaging firm buy paying off for Aussie giant
Homegrown global consumer packaging group Amcor posted a big jump in interim revenue following its $13 billion acquisition of a U.S. rival.
Amcor generated net sales of US$11.1 billion ($15.8 billion) in the six months to December, up 70 percent from the previous year, the Australia-based Switzerland-based company said on Wednesday.
Amcor’s underlying earnings before interest, tax, depreciation and amortization rose 80 percent to $1.7 billion ($2.4 billion), with net income halved to $439 million ($627 million).
Amcor CEO Peter Konieczny said the benefits from the April 2025 acquisition of Indiana-based rigid plastic packaging company Berry Global exceeded his expectations.
“Performance in the first half of the year supports our confidence in reaffirming fiscal 2026 earnings and free cash flow guidance,” he said.
Mr. Konieczny said Amcor was working on “portfolio optimization activities” and that the company was positioned to become a global leader in consumer packaging and distribution solutions for major nutrition, health, beauty and wellness industries.
Amcor produces packaging for products such as baby wipes, baking bags, stretch film often used for products such as paper towels, blister packs for medications, and pouches for food and liquids such as yogurt, among others.
The US and Australia-listed company reaffirmed its target of $4 to $4.15 in earnings per share and $1.8 billion to $1.9 billion (about $2.6 billion) in free cash flow in 2025/26.
Amcor will pay investors a dividend of 65 cents per share in the second quarter. This rate was 63.75 cents the previous year. Holders of Australian-listed securities will receive an unvested dividend of 93 cents per share.
Goldman Sachs analyst Niraj Shah said Amcor’s earnings were four percent below consensus estimates, but the midpoint of full-year guidance was 1.8 percent above expectations.
He added that this means all eyes will be on his performance in the second half of 2025/26.
Goldman Sachs reiterated its buy rating and twelve-month price target of $86.55 for the company’s Australian equities.
In trading on Wednesday morning, Amcor’s ASX-listed CDIs (or Chess Depositary Interests) were changing hands at $63.94, up 1.4 per cent from Tuesday’s close.
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