The Amcor CDI (ASX: AMC) share price opened over 6% higher this morning following release of the company's half-year results. At the time of writing, Amcor shares have dropped back slightly and are swapping hands for $15.17 apiece.
Amcor develops and produces packaging for food, beverage, pharmaceutical, medical, home and personal care, and other products. The company employs approximately 47,000 people and does business in over 40 countries.
What's moving the Amcor share price today?
The Amcor share price is on the run as investors digest a strong set of half-year results.
Amcor reported a GAAP (generally accepted accounting principals) net income of $417 million for the six months ended 31 December 2020. Compared to the previous corresponding period (PCP), this is a 65% increase.
Amcor's GAAP earnings per share (EPS) gained a whopping 71% compared to the PCP. EPS for the period was a massive 26.5 cents per share. Adjusted EPS came in at 33.3 cents per share.
The company's quarterly dividend also jumped up to 11.75 cents per share, compared to 11.5 cents in the fourth quarter of 2019.
As a result of these achievements and other influences, Amcor has raised the outlook for adjusted EPS growth to 10–14% in constant currency terms. The previous estimate was 7–12%.
The company further notes a pre-tax synergy benefit of approximately $70 million following the Bemis acquisition. Bemis, a US-based plastic supplier and manufacturer, was acquired through an all-stock transaction in June 2019.
Volume growth in all geographic regions
Amcor advised that all geographic regions delivered volume growth. Volumes in North America grew 'in the mid single digit range'. This was driven by strength in the meat, frozen food, liquid beverage, pet food, home and personal care end markets as well as speciality cartons.
In Europe, overall 'low single digit' volume growth was driven by higher volumes in cheese, snacks, coffee, pet food, and ready meal end markets.
Flexible packaging volumes grew at 'mid single digit rates' across Asian emerging markets. China and India both experienced double digit growth which was offset by lower volumes across South East Asia. Overall Latin America volumes also grew in the 'low single digit range' for the period.
CEO comments
Weighing in on Amcor's half-year results and the company's position for the rest of FY21, CEO Ron Delia said:
Amcor's investment case remains as strong as ever. We are well positioned to continue generating growth from attractive consumer and healthcare end markets, our leadership and scale in emerging markets and our extensive innovation capabilities. With annual free cash flow of more than $1 billion, we have substantial capacity to create value for shareholders by reinvesting in the business, pursuing acquisitions, and returning capital through a compelling and growing dividend and share repurchases
The Amcor share price has lost more than 9% over the past year. On current prices, the company has a market capitalisation of $23.78 billion.
