The Amcor PLC (ASX: AMC) share price is in the green today after the dual-listed company released its third-quarter results (Q3 FY21).
At the time of writing, shares in the packaging giant are trading for $15.91 – up 3.3%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.63% higher.
Let's take a closer look at today's news and what it means for the Amcor share price.
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Quarterly results and the Amcor share price
In its statement to the ASX, Amcor advised net income (or profit) for the quarter was US$267 million, 47.5% higher than the prior corresponding period (pcp). For the first 3 quarters of the financial year, net income was US$684 million – up 58% on the pcp.
Net sales for the quarter were US$3.2 billion – up only 2.1% on the pcp. For the nine months ending 31 March 2021, net sales totalled US$9.4 billion – up 0.88%.
Cost of sales is up 1.4% in Q3 and down 1.2% for the three quarters combined. The company attributed the gap between gross and net profit largely to a US$44 million positive change in restructuring expenses for the quarter and a US$40 million change for all 3 quarters.
Amcor had a negative cash flow for the first 3 quarters of FY21 of US $53 million. This is down 17.2% on the pcp, however. Total cash on hand for the company is US$690 million – up 28.3% on the pcp.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) are 5.6% higher on the pcp to US $1.45 billion. Adjusted earnings per share (EPS) are 51.5 cents.
Due to today's results, Amcor will pay shareholders an interim dividend of US11.75 cents a share. This is US 0.25 cents higher than the dividend payment for the pcp.
Investors are responding well to today's results, judging by the Amcor share price rise.
Management commentary
Commenting on the update, Amcor CEO Ron Delia said:
Amcor is maintaining momentum and executing well in the face of a dynamic operating environment. As a result, we delivered strong year-to-date performance and we are raising our full year adjusted EPS growth outlook to 14-15% in constant currency terms.
The business delivered strong adjusted EBIT growth of 9% on a year-to-date basis and organic growth has continued to strengthen as we progress through the fiscal 2021 year. Delivery of cost synergies related to the Bemis acquisition continues to progress ahead of original expectations, leaving us well positioned to exceed the original target with at least $180 million of pre-tax benefits by the end of fiscal 2022.
Amcor share price snapshot
The Amcor share price has increased 18% over the last 12 months and is up nearly 5% year-to-date. Although, in an exclusive interview with Motley Fool Australia last month, a leading fund manager explained why the company has sold its Amcor shareholdings as the market progressed post-COVID.
Amcor has a market capitalisation of $18.2 billion.
