Amcor ups profits in first post-Alcan results

In results published this morning that are the first since the Australian group acquired much of the Alcan packaging business, EBITDA rose 11.5% to AUS$1.2bn (£622m) while Sales were up just 3.3% at AUD$9.85bn, around £5.6bn.

Melbourne-based Amcor completed its AUS$2bn acquisition of four of the Alcan businesses – Alcan Packaging Global Pharmaceuticals, Alcan Packaging Food Europe, Alcan Packaging Food Asia and Alcan Packaging Global Tobacco – in February this year.

In his review of the year in Amcor’s Flexibles business unit, MacKenzie said that progress following the acquisition, which was first announced in July 2008 and covered 80 factories in 28 countries, was had exceeded expectations.

“Culturally, the fit between the two organisations has been better than anticipated. As a result, teamwork and co-operation across the new organisation has been excellent.”

Cost savings on track
He said that customers were responding positively to the change and their feedback would influence cost-saving programmes in the coming months.

“We remain confident of achieving $200 to $250 million in synergies relating to overhead cost reductions, procurement cost savings and improved operational efficiencies,” he said.

Overall, MacKenzie said that the results reflected the resilient nature of the Amcor’s customers’ markets during the downturn, especially in food, beverage, healthcare and tobacco, which make up around 80% of sales.

In the group’s rigid plastics division, which acquired Ball’s Plastic Packaging Americas business at the start of August for $280m, MacKenzie said that a strong performance in Latin America had offset lower volumes in North America.

He said that the Ball acquisition would offer “significant synergy opportunities” that would improve profits in the coming year.

The group’s third division, Australasia and Packaging Distribution, saw sales drop but posted improved profits, especially in the second half of the year, MacKenzie said.

Sales 9849.5 (2009: 9535.4)
EBITDA 1213.9 (1,088.7)
EBIT 759.2 (646.6)
Proft after tax 409.2 (360.5)

Results by business unit

Flexibles
Sales 4,421.8 (2009: 3,303.6)
EBIT 397.1 (272.1)

Rigid plastics
Sales 2577.9 (3250.8)
EBIT 212.8 (242.6)

Australasia and Packaging Distribution
Sales 2,800.2 (2,984.6)
EBIT 161.2 (140.6)

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