Amcor Share Price Dips 0.76%

Amcor Limited [ASX:AMC] shares dropped by a mere 0.76% this morning.

Their market cap is valued at $16.53 billion and enterprise value stands at $21.01 billion.

Return on assets stands at 7.63% while return on equity holds at a high percentage of 72.67%

Incorporated in 1926 and stationed in Southbank, Australia, Amcor specialises in providing packaging solutions in Australia, New Zealand and other regions around the globe.

Amcor operates through other investment segments, while manufacturing a large variety of different products such as foods and drinks.

They also manufacture flexible high-quality materials for meeting packaging standards.

What is the current state of Amcor Limited?

Part of their share drop stems from its Rigid Plastics Segment, which delivered a low profit.

Volume challenges in the North American beverage segment was one of the reasons why Amcor suffered from such low profits in regard to their Rigid Plastics Segment.

However, Amcor isn’t doing badly, their outcome is overall a mixed result.

Amcor’s Flexibles segment contributed to a small amount of growth as it saw profits before tax increase back in February.

Management predicts growth for their flexibles segment, but doesn’t expect much of an increase from rigid plastics.

Amcor’s controlled entities

Amcor has not acquired any new businesses as of late, however back in November 2017 Amcor went through with their first option to extend the €750 million multi-currency credit.

Management will go through with monitoring evolving interpretations of certain types of tax legislations and its resulting impacts, as a result they will be able to revise estimates of Amcor’s tax.

Amcor’s news release reported that CEO Mr Ron Delia stated:

During the half year we have grown earnings, expanded margins and maintained strong returns, with good progress on key investments. Cash flow and the balance sheet remain strong which, along with our confidence in the earnings growth capacity of the business, enabled the Board to increase the interim dividend by 8% to 21.0 US cents per share.

Amcor believes the business is focusing on growth levers that are within the grounds of their control.


Ryan Clarkson-Ledward,
For Money Morning

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