Amcor/AMC

Amcor, the large packaging company, out with an upgrade to guidance.

We are pleased, in our results note back in February (see here) we discussed the below outlook from the earnings call. That would appear to have played out, now.

The story is the same in both the flexibles and rigids segments, namely “improved sequential quarterly growth”, and productivity uplifts from prior cost out efforts.

Here’s the larger flexibles segment, with a decent margin uplift. That 3Q24 result was an 8% improvement relative to 2Q24 in terms of volume.

And the smaller rigids segment.

Again, this is all in context of a good quality company going through a cyclical drawdown due to inventory destocking from end users (customers), which appears to be coming out of that downturn in a stronger position due to productivity initiatives.

The opening Q&A remarks are also quite encouraging. Management are expecting the upturn to continue. That would certainly be nice.

Given the solid yield, good momentum, and modest valuation, we remain happy holders.

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