“We are encouraged by early indications that the short-term challenges our industry has experienced have started to stabilize as we head into the 2019 financial year,” said Amcor CEO Ron Delia. “Volumes in the North American beverage segment have modestly improved, earnings headwinds in some regions have started to slow as higher raw material costs are passed through and emerging markets organic growth improved in the second half to 4%.
“Earnings for the 2018 financial year were in line with the prior period in constant currency terms. The business continued to implement pricing actions to recover higher input costs in the Flexible Packaging segment and to adapt the cost base to reflect lower volumes in some parts of the business. We continued to make good progress against investments in the Alusa and Sonoco acquisitions and the restructuring initiatives in the Flexibles segment. Amcor continued to generate strong margins and cash flow which, along with confidence in the earnings growth capacity of the business, enabled the Board to increase the full year dividend by 5% to 45.0 US cents per share,” Delia added.
“Earlier this month, we announced an agreement to acquire Bemis Company Inc in an all-stock combination at a fixed exchange ratio,” Delia noted. “By combining the complementary commercial, operational and innovation capabilities that Amcor and Bemis each bring, there is an exceptional opportunity to deliver an industry leading value proposition to our customers, employees and the environment. Looking ahead, we expect constant currency earnings growth in the 2019 financial year and the long-term growth potential of Amcor remains substantial.”