Underlying profit for the year ended 30 June 2016 was US$671.1 million.
Highlights for year ended 30 June 2016 - underlying earnings unless otherwise indicated (1)
- Profit after tax of US$671.1 million up 7.5% on a constant currency basis;
- Earnings per share (EPS) up 11.3% to 57.7 US cents on a constant currency basis;
- Returns, measured as profit before interest and tax to average funds employed of 21.6%;
- Free cash flow of US$311.2 million(2); and
- Annual dividend per share (DPS) increased to 41.0 US cents. Paid as 55.3 AUD cents, up 4.3%.
In announcing the result, Amcor’s Managing Director & CEO, Mr Ron Delia said: “Today, Amcor reported a strong full year result with growth in earnings, returns and cash flow delivered in a challenging macroeconomic environment.
The defensiveness and resilience of our businesses was once again evident with balanced growth across the portfolio. Growth was solid in both developed and emerging markets, there was a mix of growth from organic sources and from acquisitions and both the flexibles and rigid plastics segments achieved higher results than the same period last year.
“Underlying earnings per share, on a constant currency basis increased 11.3% reflecting strong profit growth and the benefit of a US$500 million share buy-back completed during the period.
“Cash generation remained solid, the balance sheet is strong and returns exceeded 21% for the first time. This enabled Amcor to redeploy US$1.2 billion of cash to generate value for shareholders through acquisitions, a share buy-back and by increasing the dividend. In Australian dollar terms, the annual dividend has increased 4.3%.
“Amcor has made good progress against a set of strategic priorities that were introduced over the last 12 months.
The business is in a strong position today, and there are many opportunities to make it even stronger by generating our own growth, increasing our agility and adapting the organisation, and developing our people.
“Since 30 June 2015, Amcor has announced or completed eight acquisitions in the United States, Canada, South Africa, South America, China and India, and has invested in three dedicated greenfield facilities to support the growth of our customers. We have also been proactive in making changes to our organisation in order to unlock further growth and to take advantage of our global reach. These are important components of Amcor’s growth strategy and we continue to see many opportunities to deliver strong value for shareholders.
Business Group Performance
“Amcor’s end markets are relatively defensive with most sales into the food, beverage and health care segments. Against a backdrop of challenging economic conditions, the performance of the businesses was strong reflecting growth from acquisitions and robust organic growth in emerging and developed markets.
“The Flexible Packaging segment had a solid year with constant currency earnings growth of 7.2%. The key drivers of earnings growth were higher tobacco packaging volumes, benefits from prior period acquisitions, excellent cost performance and strong organic growth in emerging markets.
“The Rigid Plastics business had an outstanding year with earnings up 9.7%. There was strong volume growth in the North American operations with higher volumes in all the main product segments, and continued earnings growth in Latin America.
“The Company is very well positioned for continued growth. The outlook for the 2016/17 year is for higher earnings than the 2015/16 year, expressed in constant currency terms.”
- (1) Throughout this document, references are to underlying earnings unless otherwise stated. Underlying earnings have been adjusted for costs related to restructuring in the Flexibles segment and change of accounting treatment in Venezuela. Both of these were previously announced on 9 June 2016.
- (2) Free cash flow is operating cash flow less dividends. Operating cash flow is after capital expenditure and proceeds from sale of property, plant and equipment.
- Certain non-IFRS financial information has been presented within this release. This information is presented to assist in making appropriate comparisons with prior periods and to assess the operating performance of the business. Amcor uses these measures to assess the performance of the business and believes that the information is useful to investors. Non-IFRS information, including underlying earnings and average funds employed has not been audited but has been extracted from Amcor’s audited financial statements.
Amcor has released to the Australian Securities Exchange a presentation on its financial results for the full year ended 30 June 2016. This is available at www.amcor.com
For further information please contact:
, Acting Executive General Manager Corporate Affairs Amcor Limited,
Ph: +61 3 9226 9028
FY16-Results-Investor-Presentation (.pdf, 1.14MB)Appendix-4E-Final-FY16-and-Accounts-Combined (.pdf, 328.78kB)Long-form-news-release-FY2016 (.pdf, 187.18kB)Short-form-news-release-FY2016 (.pdf, 97.95kB)