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AMCOR LIMITED (AMC)

AMCOR LIMITED (AMC)

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General Information
Company Name: Amcor Limited
Stock Code: AMC
Website: www.amcor.com
GICS Sub-Industry: Paper Packaging
Market Cap ($M): 8,423
Equiv. Shares (M): 1,207

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 6.990 $ 7.010 $ 7.090 $ 6.970 $ 6.980 3,706,239 $ 0.010  0.143 %

Current Broker Consensus Recommendation more
Recommendation: Buy
Recommendation Date: 2nd Feb 2012
12 Month Target Price (average): $7.873
Brokers Surveyed: 8

Company Overview

Business Description:
Amcor Limited (AMC) is a global packaging company with five operating divisions spread over five major geographic areas (over 42 countries); Australasia, North America, Latin America, Europe and Asia. As a packaging manufacturer, they offer a broad range of rigid plastics, flexibles, fibre, metal and glass products along with packaging-related services.

Strategy Analysis:
AMC is focused on potential acquisitions and increased segment participation on order to grow the business. There will be a divestment of non-strategic businesses as well as investment into new equipment in order to lower operating costs and increase plant focus. Geographic expansion through Central and Eastern Europe via organic and acquisitive growth is being developed. The company hopes to leverage strong regional positions and an extensive product portfolio in order to further enhance their market position and capture high performance product growth. Amcor reported NPAT up 94.9% to $356.7m for the year ended 30 June 2011. Revenues from ordinary activities were $12.41bn, up 26% from last year. Recent acquisitions have been significant contributors to earnings growth and higher returns. Diluted EPS was 28.7 cents compared to 15.6 cents last year. Net operating cash flow was $785.8m compared to $784.1m last year. The final dividend declared was 18 cents, taking the full year dividend to 35 cents compared with 29.5 cents last year. Over the past six years, the Company has undergone a substantial transformation that has included the acquisition of Alcan Packaging and Ball Plastics Packaging. The improved earnings and strong cash flow, positions the Company to accelerate growth in attractive market segments.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F 777.6 62.2 9.7 11.2 43.0 6.2 0.0
2012  F 695.9 56.7 22.0 12.3 39.0 5.6 0.0
2011  A 570.3 46.5 32.9 14.6 35.0 5.2 0.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F
Amcor (AMC) $8,483 M 0.1512 0.1530 0.0777 15.3192 13.2867 12.3290 0.0356 0.0555 0.0612

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
AMC 1.49 13.9 2.32 1.21 0.69
Market 0.82 12.5 1.38 1.21 1.90
Sector 0.61 12.1 1.30 0.67 20.9

Directors
Name Position Start Date
Mrs Jenny Seabrook -- 01 December 2011
Mr Kenneth Norman MacKenzie Chief Executive Officer,Managing Director 01 July 2005
Mr Christopher Ivan Roberts Non-Executive Chairman,Non-Executive Director 19 February 1999
Mr Jeremy Leigh Sutcliffe Non-Executive Director 22 October 2009
Mr George (John) John Pizzey Non-Executive Director 23 September 2003
Mr John Gordon Thorn Non-Executive Director 08 December 2004
Mrs Karen Jane Guerra Non-Executive Director 20 April 2010
Dr Armin Meyer Non-Executive Director 20 April 2010

Management
Name Position
Julie Mcpherson Company Secretary
L A Desjardins Executive Vice President, Finance
R Delia Executive Vice President, Finance and Chief Financial Officer
I G Wilson Executive Vice President, Strategy & Development
G Blatrix Managing Director, Amcor Flexibles Food
J Czubak Managing Director, Amcor Rentsch
N Garrard President, Amcor Australasia and Packaging Distribution
P Brues President, Amcor Flexibles Europe & Americas
W J Long President, Amcor Rigid Plastics

Substantial Shareholders
Holding Name
103,042,837 (8.40%) The Capital Group Companies, Inc.

Calendar of Events
Date Event
13 September 2012 Report (Annual)
20 August 2012 Report (Prelim)
20 February 2012 Report (Interim)
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