Amcor has released its first half and Q2 fiscal 2023 financial results, reporting a net sales of $7.35 billion, up six per cent, for the six months ending 31 December 2022 and net sales of $3.64 billion (an increase by four per cent on a reported basis) for its December 2022 Q2 quarter.
It said its net sales of $7.35 billion includes an unfavorable impact of five per cent related to movements in foreign currency exchange rates and price increases of approximately $670 million (representing 10 per cent growth) related to the pass through of higher raw material costs.
It added that for that half-year result, its GAAP Net Income was $691 million and includes a $215 million gain on the sale of the business in Russia. Its adjusted EBIT of $791 million was eight per cent higher than last year on a comparable constant currency basis.
For the December 2022 quarter, the company said its net sales of $3.64 billion includes an unfavourable impact of five per cent related to movements in foreign currency exchange rates and price increases of approximately $270 million (representing eight per cent growth) related to the pass through of higher raw material costs.
Its GAAP Net Income for this quarter was $459 million and includes a $215 million gain on the sale of the business in Russia. Its adjusted EBIT of $399 million was seven per cent higher than the same quarter last year on a comparable constant currency basis.
Amcor CEO Ron Delia said, “Amcor delivered strong financial performance for the first half of fiscal 2023, demonstrating excellent operating leverage amid ongoing challenges in the macroeconomic environment.
“For the year-to-date, organic net sales growth of two per cent drove an eight per cent increase in adjusted earnings per share on a comparable constant currency basis. We continue to make good progress on our commercial and strategic agenda and our teams are doing an excellent job navigating through volatile market conditions, while recovering general inflation and higher raw material costs.
“Our exposure to consumer staples and healthcare end markets positions our business well despite some softening in the demand environment and customer destocking through the December quarter.
“We also completed the sale of our Russian plants and announced a bolt-on acquisition in China to strengthen our healthcare packaging business in the Asia Pacific region. Notwithstanding a more cautious near-term outlook, we remain focused on executing against our strategy for long-term growth.
“Our ability to generate significant annual cash flow allows us to continue to invest in multiple growth opportunities, pay an attractive and growing dividend and regularly repurchase shares. We are confident in the strength of our underlying business, execution capabilities and capital allocation framework, all of which support our compelling investment case.”
Within its flexibles segment, for the December 2022 half year, its net sales of $5.59 billion was five per cent higher than the same period last year, which it said includes an unfavourable impact of seven per cent related to movements in foreign exchange rates and price increases of approximately $460 million (representing nine per cent growth) related to the pass through of higher raw material costs.
Net sales grew at low single digit rate across the Asia Pacific region, with the company saying it reflects price/mix benefits partly offset by lower volumes.
“Growth was strong in India, Australia and in the pan Asian healthcare and meat end markets, partly offset by lower volumes in China where demand was unfavourably impacted by COVID related lockdowns, particularly in the December 2022 quarter,” the company said.
Within its rigid packaging segment, for the December 2022 half year, its net sales of $1.76 billion was 12 per cent higher than the same period last year, which it said includes an unfavorable impact of one per cent related to movements in foreign exchange rates and price increases of approximately $210 million (representing 13 per cent growth) related to the pass through of higher raw material costs.
