Amcor's annual profit drops as demand slows

The news: Global packaging giant Amcor has posted a drop in full-year profit amid higher costs and softening demand in the second half of the financial year.

The numbers: Net income for the year to 30 June fell 11% to USD1.09 billion ($1.7 billion), while net sales were up 1% to USD14.7 billion. Adjusted earnings per share fell 9% from a year ago to 73.3 US cents. Amcor will pay a quarterly dividend of 12.25 US cents, taking its full year payout to 49 US cents.

The context: Amcor CEO Ron Delia said demand softened considerably and customer destocking persisted in the last two quarters. While the company expects adjusted EPS to drop further in FY24 to 67-71 US cents a share, Delia flagged a "return to solid earnings growth" in the second half of FY24 as the company rolls out price hikes, cost reduction and as headwinds from the sale of its Russian plants last year subside.