Taxbreak helps Amcor (AMC) results
Stock
Amcor Limited (ASX:AMC) $13.81 as at 21/08/2018Event
Packaging maker Amcor has come under pressure today despite what looks to be a reasonable FY18 result. On first glance, their profit number is inline and dividend as expected, but much of the result is driven by a falling tax rate working to offset rising raw material costs. The company didn’t give specific guidance, only to say they expect solid growth which in our view likely implies mid-single digit growth which is below the market, although this is clearly not precise.
The focus now turns to their acquisition on US packaging giant Bemis. Shares have come under pressure since this was announced earlier this month with the dilution on the back of the pending Bemis purchase expected to be completed in early 2019, where shares will be dual-listed on the NYSE and the ASX. Management remain positive on the acquisition looking for synergies and growth in the combined entity.
Amcor (AMC) Chart
