Amcor Plc (AMC)
BUY

AMC - Stock Update

 6 May 2022
Sector: Materials

AMC published its 3Q22 result earlier this week for the 9-months ending Mar-22. The company mentioned that:

  • Group EBIT of US$1,196
  • March quarter net sales were up 16%
  • Net sales up 13%
  • Adjusted Free Cash Flow of ~US$1.1 billion (prev. US$1.1-1.2 billion)
  • Adjusted EPS up 15% on a comparable constant currency basis
  • GAAP Net income up 2%

Notably the Free Cash Flow guidance was slightly lowered which management mentioned was related to impacts from higher material costs on working capital. The Australian dollar has also softened since last quarter which theoretically could be a positive for Amcor as it’s an offshore earner. This supports our BUY rating for AMC.

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Company Overview

Amcor are global leaders in developing and producing responsible packaging for food, beverage, pharmaceutical, medical, home and personal-care, and other products. Defensive stocks have become more attractive due to macroeconomic pressures. AMC is a defensive offshore earner that has displayed growth despite raw material cost pressures. As discussed within our most recent research report we have a BUY rating for Amcor.

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