Amcor (ASX: AMC) has revealed its financials for FY22, reporting its third consecutive year of accelerating growth.
The company reported its net sales at $14.5 billion, up 13 per cent from the same time last year, which includes price increases of approximately $1.53 billion (representing 12 per cent growth) related to the pass through of higher raw material costs and a combined unfavorable impact of three per cent related to items affecting comparability and currency.
Its adjusted EBIT was $1.701 billion, up seven per cent on a comparable constant currency basis. Its full year net sales were four per cent higher than the same period last year on a comparable constant currency basis largely reflecting favorable price/mix. Its full year volumes were also higher than the prior year.
As for the June quarter, net sales for the Amcor Group of $3.91 billion increased by 13 per cent on a reported basis and six per cent on a comparable constant currency basis mainly reflecting strong price/mix benefits.
June quarter volumes were also higher than the prior year. Adjusted EBIT for the June quarter of $505 million was nine per cent higher than the same quarter last year on a comparable constant currency basis.
Amcor CEO Ron Delia said, “Fiscal 2022 was another outstanding year for Amcor. Our financial performance accelerated throughout the year as we delivered our strongest quarter in June with organic sales growth of six per cent and adjusted EBIT growth of nine per cent.
“For the full year, strong execution resulted in 11 per cent adjusted EPS growth, at the top end of our guidance range and supported by organic sales growth of four per cent. We generated over $1 billion in adjusted free cash flow, supporting $600 million in share repurchases and an increase in what we believe is a very compelling dividend.
“This is our third consecutive year of accelerating top line growth, and we expect to sustain this momentum including by stepping up investments in areas such as higher value-add priority segments.
“This gives us confidence the business will deliver another year of strong underlying EPS growth in the range of seven per cent to 12 per cent. We also plan to continue returning capital to shareholders while actively exploring opportunities for value-creating acquisitions across our portfolio.”
Within its flexibles business, its full-year net sales of $11.1 billion were 11 per cent higher, which includes price increases of approximately $1.09 billion (representing 11 per cent growth) related to the pass through of higher raw material costs and a combined unfavorable impact of four per cent related to items affecting comparability and currency. Full year net sales were four per cent higher than the prior period on a comparable constant currency basis reflecting favorable price/mix.
As for its rigid packaging business, its full-year net sales of $3.39 billion were 20 per cent higher than the prior year, which includes price increases of approximately $439 million (representing 16 per cent growth) related to the pass through of higher raw material costs. Full year net sales were five per cent higher than the prior period on a comparable constant currency basis reflecting volume growth of three per cent and a favorable price/mix benefit of two per cent.
Amcor also provided an update on its business in Russia and Ukraine, saying that after a thorough review of all strategic options, it has decided to pursue the sale of its three factories in Russia.
“While it is difficult to determine the exact timing for finalisation, the company is working towards completion during the second half of the 2023 fiscal year. Until that time, Amcor remains committed to supporting its employees and customers, while preserving value for shareholders through an orderly sale process,” it said.
“The company is also undertaking proactive initiatives to help offset the future impact of divested earnings. Assets and liabilities of the Russian business have been classified as held for sale at June 30, 2022.
“Impairment and restructuring charges related to the Russia and Ukraine operations of approximately $200 million were recognised in the June 2022 quarter and have been excluded from adjusted earnings.”