Amcor share price higher despite profit drop, but raises dividend

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The Amcor (ASX:AMC) share price has gained 21 cents or 1.5% to $14.50 as first-half sales revenue ticked up 1.1 per cent to $4.55 billion but net profit fell 18.8 per cent to $US267.6 million ($A376.91 million), largely due to higher costs in the United States, and refinancing expenses.

Amcor lifted its interim dividend by half a US cent to 21.5 US cents, but the plunging Australian dollar – which fell about 10 per cent against the greenback in 2018 – means local shareholders will receive 29.78 Australian cents.

That’s an increase of 13.8 per cent on the prior corresponding period.

“Amcor had a good first half year with earnings growth in line with our expectations and balanced across the flexibles and rigids packaging segments,” Amcor chief executive Ron Delia said in a statement.

The results were in line with Amcor’s expectations, while the company reiterated that its scheduled takeover of American rival Bemis has been pushed back to the second quarter of 2019 following the partial US government shutdown.

The all-stock deal was initially expected to close in the first quarter of 2019.

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Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
Lauren Surplice is a keen follower of the stock market, investing in individual companies and funds. She follows the daily stock market news, covering the ASX stocks that are moving the markets. You can contact Lauren at laurens@thecapitalclub.com.au