The strong US dollar cut into the profits of Australian packaging giant Amcor for the 12 months to June 30, with the company posting a small 0.4% rise in net profit to $A947 million ($US680.3 million).
The company added that net profit had actually jumped 7.2% - when currency swings from a strengthening US dollar were excluded. Revenue was down 3.5% at $US9.61 billion.
“The full year results represent another year of higher profits and returns despite a depreciating Australian dollar,” said Amcor CEO Ron Delia. “Earnings per share, on a constant currency basis, increased by 7.5 per cent, and dividend, in Australian dollar terms, increased by 23 per cent to 53 cents. Though growth is lower, change is happening more quickly and we are adapting to our environment and accelerating to meet new opportunities. The key drivers of our increased earnings were the benefits from recent acquisitions and continued improvement in operating performance."
Over the past year Amcor announced acquisitions in South Africa, Brazil, China and India, as well as new plants in the Philippines and Indonesia.
Delia emphasised the importance of the Australian market, which makes up five per cent of its business.
“We have the market-leading flexible packaging business in Australia and New Zealand and the presence we have here is important. Australia holds an important part of our operating business, which will continue to prosper, and it is also our listing location and a great source of equity capital. We don't see any reason to shift the listing of our company anywhere else.
“The rigid plastics business had a strong year, with earnings up 8% and returns at a record 20%. There was continued growth in Latin America and the North American operations had a solid result, with higher volumes in all the main product segments," he said. Amcor's flexible packaging segment saw record returns of 25.5% and its operating sales margin increased to 12.5%.
“The outlook for the 2015/16 year is for higher earnings, expressed in constant currency terms,” said Delia.
The final dividend was 28.6 Australian cents per share, unfranked, up from 23.5 cents.