Amcor Plc Stock Price, News & Analysis

Amcor (NYSE: AMCR) has announced a strategic investment of $10 to $15 million in ePac Flexible Packaging, a leader in short-run digital printing for flexible packaging. This investment includes a minority stake in ePac Holdings LLC and funding for additional sites. ePac, operational at 18 locations and expanding to 5 more, generates approximately $100 million in annual revenues, primarily serving small to medium-sized consumer goods companies. This venture marks Amcor's first corporate investment aimed at leveraging innovative technologies and models in the flexible packaging sector.

Amcor has collaborated with several companies to launch Australia's first soft plastic food wrapper made from recycled content. This joint effort aims to tackle the challenges of plastic waste by promoting a circular economy. The prototype is a KitKat wrapper, showcasing advanced recycling technology to convert soft plastic waste back into oil. The initiative aligns with Amcor's commitment to make all packaging recyclable or reusable by 2025, reflecting a strong consumer demand for sustainable packaging solutions.

Amcor has joined the Alliance to End Plastic Waste at the Executive Committee level, reinforcing its commitment to sustainability. This partnership aligns with Amcor's 2025 Sustainability Pledge to ensure all its packaging is recyclable or reusable by 2025. CEO Ron Delia emphasizes the necessity of collaboration for effective waste management and recycling. The Alliance comprises 57 member companies committed to tackling plastic waste through innovative projects. Amcor's initiatives include partnerships in Latin America and ongoing efforts in Indonesia, aiming to enhance recycling and waste treatment.

Amcor reported a strong performance for the first half of FY21, achieving a GAAP Net Income of $417 million, a 65% increase year-over-year, with an EPS of 26.5 cents, up 71%. Adjusted EPS reached 33.3 cents, reflecting a 16% rise in constant currency. The company delivered $35 million in Bemis cost synergies and expects this to reach approximately $70 million for FY21. Amcor announced a quarterly dividend increase to 11.75 cents per share and plans to repurchase $350 million in shares. Adjusted EPS guidance for FY21 was raised to 10-14% growth.

Amcor is intensifying its sustainability efforts, aiming for all packaging to be recyclable or reusable by 2025. The company invests $100 million annually in R&D, showcasing innovations such as the AmLite HeatFlex recyclable pouch. With $7.7 billion in revenue from recyclable packaging, Amcor is leading the way with new solutions like AmPrima™ and Eco-Tite R. Collaborations with groups like CEFLEX and MRFF are enhancing recycling infrastructure globally. Amcor also focuses on consumer education to boost recycling rates and plans to use 10% PCR content across its portfolio by 2025.

Amcor will announce its Half Year 2021 results for the period ending 31 December 2020 after US market close on 2 February 2021. A conference call to discuss the results is scheduled for 5:30 PM EST on the same day. Participants can dial in using various numbers depending on their location, or access the call via a webcast available on Amcor's investor website. A replay will be available post-call.

Amcor (NYSE: AMCR), a global packaging leader, has become the first diversified packaging company to report against SASB standards, enhancing industry transparency and risk management. By adhering to SASB's Containers & Packaging standard, Amcor aims to promote sustainable practices recognized by investors. Over the past nine years, the company has also reported sustainability metrics under GRI Standards and committed to various initiatives, including joining the WWF's ReSource program to address plastic waste. Amcor generates $12.5 billion in annual sales across 230 locations worldwide.