Sales for the year ending 30 June 2010 were up 3.3% to $9.85bn at the packaging giant, while earnings before interest, tax, deductions and amortisation (EBITDA) was up 11.5% to $1.21bn.
The company’s Flexibles division led the charge with sales of $4.42bn, up 34% year-on-year. The division also posted a 46% rise in EBIT to $397.1m.
Amcor managing director and chief executive Ken MacKenzie said the results were “particularly pleasing given the ongoing difficult economic conditions”.
“A highlight for the year has been the exceptionally strong cash flow performance. The operating cash flow was $566.8m, which was an outstanding performance,” he said.
MacKenzie also said the company’s acquisition of Canadian company Alcan Packaging was “proceeding as anticipated”.
“I could not be more pleased with the way the two organisations have come together,” he said.
“Amcor took the opportunity to purchase Alcan Packaging at the right time, acquiring the business at bottom of the cycle earnings and at a bottom of the cycle multiple. By conservatively funding the acquisition, our balance sheet has remained strong.”
The acquisition saw Amcor acquire 80 plants, increasing its operating footprint to over 300 plants in 43 countries. More than 80% of the sales acquired are in flexible packaging and approximately 15% in tobacco packaging.
MacKenzie said the company is moving forward with a “plant rationalisation strategy” as part of the Alcan acquisition, following discussions with major customers.
“We remain confident of achieving $200-$250m in synergies relating to overhead cost reductions, procurement cost savings and improved operational efficiencies,” he said.
The company said in May that it was merging its Australasian and North American packaging distribution divisions as part of a bid to become “the low-cost manufacturer”.
The company is also in the process of upgrading its Botany mill and consolidating its paper-making operations onto a single site.
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