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.

Important Information: This document has been prepared by Aequitas Investment Partners ABN 92 644 165 266 (“Aequitas”, “our”, “we”), a Corporate Authorised Representative (no. 1284389) of C2 Financial Services, (Australian Financial Services Licensee no. 502171), and is for distribution within Australia to wholesale clients and financial advisers only.

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.

General Advice Warning: This document has been prepared without taking into account your objectives, financial situation or needs, and therefore you should consider its appropriateness, having regard to your objectives, financial situation and needs. Before making any decision about whether to acquire a financial product, you should obtain and read the relevant Product Disclosure Statement (PDS) or Investor Directed Portfolio Service Guide (IDPS Guide) and consider talking to a financial adviser.

Taxation warning: Any taxation considerations are general and based on present taxation laws and may be subject to change. Aequitas is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and investors should seek tax advice from a registered tax agent or a registered tax (financial) adviser if they intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.