The Amcor PLC (ASX: AMC) share price looks set to end the week on a positive note.
In morning trade on Friday the packaging company’s shares are pushing 2% higher to $14.64.
Why is the Amcor share price pushing higher?
Investors have been buying Amcor’s shares today following the release of its first quarter results.
During the first quarter of FY 2020, Amcor posted net sales of US$3,140.7 million. This was up 38.8% on the prior corresponding period thanks to the acquisition of Bemis.
Amcor’s adjusted earnings before interest and tax (EBIT) came in at US$335 million, which was an increase of 9.5% in constant currency terms.
On the bottom line, adjusted net income was US$218 million and adjusted earnings per share was 13.4 U.S. cents per share. Both were up 14.9% on the prior corresponding period in constant currency.
As well as providing the financial results, management provided an update on the integration of Bemis.
According to the release, the integration is progressing well and is on track to deliver US$180 million of pre-tax synergies over the next three years.
CEO, Ron Delia, was pleased with the start to FY 2020. He said: “Amcor’s fiscal 2020 is off to a solid start with strong financial results in the first quarter in line with our expectations.”
“We are encouraged by the momentum in the base business, the initial synergy contribution from the Bemis acquisition, and continued progress on our sustainability agenda,” added Mr Delia.
In light of this solid start to the new financial year, management confirmed that it is on track to deliver on its guidance of 5% to 10% earnings per share growth.
The CEO continued: “We are making strong progress against our priorities to deliver organic growth in the underlying business, maximise the benefits from the Bemis acquisitions and capitalise on the increasing need to develop packaging that best protects the environment.”
“With over $1 billion of annual cash flow to deploy across dividends, acquisitions, strategic investments and share buy-backs, Amcor is well positioned to continue generating strong returns for shareholders,” he concluded.
This positive performance appears to have given the shares of its rivals a boost today. Both Orora Ltd (ASX: ORA) and Pact Group Holdings Ltd (ASX: PGH) are up around 1% in early trade.
The post Amcor share price pushes higher on solid first quarter update appeared first on Motley Fool Australia.
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