AMC -3.54%: global packaging giant Amcor fell today after the release of their first half numbers. Revenue jumped 12%, nearly topping $US7b, largely driven by price increases which accounted for 11%. Net profit was only 3% higher than the same period last year as costs bit into margins. Higher labour and input costs as well as supply chain issues weighed on the numbers. The company guided to 7-11% EPS growth for the year which was inline with expectations however the market appears to have taken a dimmer view on the outlook given costs that plagued the first half aren’t expected to subside anytime soon. They flagged free cash flow of $US1.1-1.2b for the full year with the company flagging an additional $US200m will be spent on buying back stock in the next financial year. Amcor moved the primary listing to the US following the takeover of Bemis in 2019. CDIs still trade on the ASX, they’ll receive a 16.85cps share quarterly dividend.
MM is neutral AMC
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