Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn


Amcor lifts half-year underlying profit, dividend

Nicholas Grove  |  13 Feb 2017Text size  Decrease  Increase  |  

Page 1 of 1

Amcor Limited (ASX: AMC) on Monday announced a 3.8 per cent rise in underlying net profit before one-off restructuring costs to US$308.6 million for the first half of fiscal 2017.

Statutory profit for the half year was US$286.6 million, down 6 per cent, while earnings per share (EPS) were up 4.6 per cent to 26.7 US cents on a constant currency basis, the packaging company said in a statement to the ASX.

The company announced a 0.5-cent lift in the half-year dividend to 19.5 cents, unfranked. The dividend will be paid in Australian dollars and will be 25.6 cents, and will be paid on 24 March 2017 to shareholders on record as at 27 February 2017.

Investors welcomed the result, sending shares in Amcor over 4 per cent higher in mid-morning trade on Monday.

Operating cash flow, excluding net capital expenditure and cash significant items, was down 48 per cent to US$52.9 million.

Amcor CEO Ron Delia described the half-year result as "solid" and reiterated the company's full-year expectation for growth in profit after tax.

"The result illustrates the defensiveness and resilience of our unique global packaging business and our strategy. Earnings growth was balanced across the Flexibles and Rigid Plastics segments, and came from both organic sources and recently acquired businesses," Delia said.

"The half year also demonstrated the benefit of our broad geographic diversification, including having a presence in every major region around the world.

"The company is very well positioned for continued growth and the outlook for profit after tax in the 2016/17 year has not changed. In constant currency terms, we expect profit after tax to be higher than the US$671.1 million delivered in the 2015/16 year."

More from Morningstar

• 4 points to note as resources rally

• News Corp reports 16pc earnings bump, 2pc revenue slide


Nicholas Grove is a Morningstar journalist.

© 2017 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. This information is to be used for personal, non-commercial purposes only. No reproduction is permitted without the prior written consent of Morningstar. Any general advice or 'class service' have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), or its Authorised Representatives, and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Please refer to our Financial Services Guide (FSG) for more information at Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a licensed financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 ("ASXO"). The article is current as at date of publication.