Over reporting season we will typically write a “flash” note, summarising the essentials. Then, we will write a follow up, highlighting some of the detail that we think is important or relevant.
Whilst the result was not very exciting, it was very dependable.
Excellent FCF generation…
Strong segmental performance, where the pricing power in the much larger flexible’s segment was essential to the maintenance of margin…
Which is well demonstrated here. Cost recovery in rigid will take some additional time, but overall we think it a robust outcome in the face of kinked supply chains and high raw material costs.
The embedded earnings expectations appear quite manageable, to our mind.
AMC is a solid QGARP company, and at a headline PE of ~15-16x, and a strong economy in front of it, we remain happy holders.
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This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.
Please note that past performance is not a reliable indicator of future performance.
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