Amcor shares drop on continuing weaker demand
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More news: Amcor shares listed on the ASX tumbled more than 4% to $16.05, mirroring a slide in its New York-listed shares after the packaging giant reported a drop in quarterly sales due to continuing weak demand for its containers and cartons from consumer goods companies.
The company lifted its net income by 3% from a year ago, reaffirmed full-year earnings per share guidance and also announced the sales of a 50% stake in joint venture Bericap North America.
Amcor lifts Q1 profit, to sell stake in JV
The news: Global packaging giant Amcor has lifted first-quarter profit despite sluggish sales and announced the sale of its 50% interest in joint venture Bericap North America.
The numbers: Net income for the three months to 30 September rose 3% to USD234 million ($356 million), while net sales were down 3% to USD3.35 billion year on year.
Adjusted earnings per share was up 3% from a year ago to 16.2 US cents. Amcor will pay a quarterly dividend of 12.750 US cents, up from 12.50 cents a year ago.
The company also said it will sell its 50% stake in the Bericap North America joint venture for USD122 million.
The context: Amcor sales remained sluggish during the quarter, hurt by weaker demand for its containers and cartons from consumer goods companies.
The company has faced lower customer demand as well as significant destocking in both North America and Europe over the last year. Interim CEO Peter Konieczny said volume growth and customer demand dynamics are improving and reaffirmed guidance for FY25 adjusted earnings per share to be between 72 and 76 US cents.
The source: ASX announcement
