Shares in Amcor Plc (ASX: AMC) are trading more than 4% higher after the company boosted its dividend on strong earnings results.
Strong sales figures
The packaging company said net sales for the third quarter came in at US$5.91 billion, up 77%, driven by the company’s acquisition of Berry, which was finalised in April last year.
Net income was US$278 million, and adjusted EBITDA was US492 million, up 87%.
Amcor said synergies from the Berry deal came in at US$77 million, “at the upper end of expectations”.
Amcor Chief Executive Peter Konieczny said regarding the result:
Third quarter results were in line with expectations and reflect the resilience of our business as we mark the first anniversary of bringing legacy Amcor and Berry together as One Amcor. Over the past year, we have executed a smooth integration, built a strong leadership structure, and made meaningful progress on synergy delivery and portfolio optimization. While we continue to operate in a challenging market environment, our global scale, diversified portfolio, and strong customer and supplier partnerships position us well.
Mr Konieczny said the company was pricing responsibly to offset inflation and it had “clear visibility to additional synergy benefits”.
Amcor, he said, had a proven ability to navigate volatility and “we are confident in our outlook and the continued strength of our business”.
While the company’s financial results were stronger, Amcor estimated that volumes were about 1.5% lower than for the combined Amcor and Berry businesses in the March quarter last year.
Amcor said regarding its dividend:
The Board’s confidence in Amcor’s near and long term growth opportunities and ability to generate significant free cash flow is reflected in today’s declaration of a quarterly cash dividend of 65.0 cents per share, compared with 63.75 cents per share in the same quarter last year, declared as 12.75 cents per share before adjusting for the 1-for-5 reverse stock split effected on January 14, 2026. Holders of CDIs trading on the ASX will receive an unfranked dividend of 91.0 Australian cents per share.
The ex-dividend date is May 27.
Cash flow downgrade
Amcor downgraded its free cash flow outlook for the full year to the end of June from the previous US$1.8 to US$1.9 billion to US$1.5 to US$1.6 billion, which “reflects higher inventory levels at higher cost to secure customer service levels given the impact of the Middle East conflict”.
Amcor shares traded as high as $55.45 early on Thursday before settling to be 4.1% higher at $54.54.
Amcor is valued at $24.13 billion.
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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.