Page 6 - Packaging News Magazine May-June 2020
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6 NEWS |
www.packagingnews.com.au | May-June 2020
TOP CLICKS
1ECO PACKAGING FOR READY MEALS COMES TO COLES Dineamic, an Australian ready-to-eat meal
provider, is moving from plastic to eco-cardboard packaging, the Halopack, for its tray meals sold at Coles
2and IGA starting in April.
PACKAGING IN THE TIME OF CORONAVIRUS: AUSTRALIA’S WAY
The coronavirus pandemic has brought
a time of unprecedented change and uncertainty to our industry. PKN spoke to industry figures to find out how the crisis is affecting
3business. (See story p22) WPO PRESIDENT TALKS
PACKAGING AND PANDEMIC
As the pandemic continues to run rampant, packaged
goods are in high demand everywhere. PKN asked World Packaging Organisation president Pierre Pienaar to share his views on the role of
4packaging in a pandemic. PACKAGING OEM
FOODMACH TO BUILD MASK-MAKING MACHINES
Foodmach was contracted by Med-Con to help set up medical mask production, in one of the many stories of packaging companies shifting gears to help meet demand for personal protective equipment
5to combat the coronavirus. (See story p49).
OUR PACKAGING FUTURE REPORT LAUNCHES TO POSITIVE ACCLAIM
Our Packaging Future, the
new strategic framework outlining how Australia will deliver the 2025 National Packaging Targets launched in April. (See story p12)
Amcor lifts outlook for year on panic hoarding
TOP STORIES FROM THE PACKAGING NEWS WEBSITE PACKAGINGNEWS.COM.AU
AMCOR has raised its full year earnings per-share outlook. The company released robust third- quarter profits it said were due in part to coronavirus-induced supermarket panic buying.
The world’s biggest packaging company now expects to pay a dividend of between 11-12 per cent per share – up from 7-10 per cent – on the back of increased production at its 250 plants around the world.
Almost all Amcor’s packaging customers are in consumer sta- ples such as food, beverage, and healthcare. These are in high demand around the world as consumers react to the Covid-19 pandemic.
Amcor’s net income from the nine months to March rose 10.8 per cent to US$719m ($1.1bn) but was 12.7 per cent higher in con- stant currency terms, which removes the effect of foreign exchange fluctuations.
Amcor CEO Ron Delia
Net sales for the nine months were down 1.8 per cent in con- stant currency terms to US$9.3bn ($14 billion). Flexibles contrib- uted US$7.28m, while rigid packaging brought in US$2.04bn.
Amcor CEO Ron Delia said Amcor remains well positioned and defensive, given its sales are almost entirely weighted to
essential consumer staples end markets, and the company has a broad geographic diversification and global scale.
“For the second consecutive quarter we have increased guid- ance for the 2020 fiscal year,” Delia said.
“Earnings growth has remained strong due to momentum in the base business, and faster than expected synergies from our acquisition of Bemis last year. Amcor continues to deliver con- sistent cash flow and the board remains committed to a compel- ling dividend.”
Amcor’s stock price fell by 30 per cent as the virus spread in March, but since recovered and is now trading less 10 per cent lower than three months ago, and above its $14 target.
The company said its acquisi- tion of Bemis had delivered US$55m in pre-tax synergies sofar.■
Visy sells Penrith factory
VISY has offloaded its Penrith factory in a $17.25m sale and leaseback deal. that will see the company continue to run a glass sorting and recycling operation from the premises.
The 42,000-square-metre plant has been bought by Sandran
Property, with Visy taking a seven-year lease on the 8000-square-metre warehouse, with renewal options. Penrith is one of 120 sites that Visy oper- ates from.
The Visy glass-sorting opera- tion mainly supplies O-I Glass,
which is located in the same street. O-I Glass ANZ was up for sale, but that process has been deferred until the Covid-19 cri- sis diminishes. Visy is believed to be the main potential buyer of the business. A sale is expected in the next few months.
If Visy bought O-I Glass ANZ, it would become the sole local producer of cartons, cans, and bottles, making for a highly leverageable trifecta.
O-I Glass has around 1100 staff in Australia, across five plants, including 250 in Penrith. In the year to March, its local business saw full year profits down by four per cent, operating profit down by 35 per cent, and segment profit margin down to 3.4 per cent from 5.3 per cent. ■
Visy’s glass-sorting operation is a supplier to O-I Glass.