Reusable packaging solutions producer Amcor has announced a 7% decline in net sales for financial year 2024 (FY24), with figures dropping to $13.64bn from $14.69bn the previous year.
The company's net sales were affected by multiple factors, including a 1% favourable impact from foreign exchange rate movements and a 1% unfavourable impact from items affecting comparability.
Additionally, the pass-through of lower raw material costs, amounting to approximately $220m, contributed to a 1% negative impact.
On a comparable constant currency basis, net sales were 6% lower, with a 5% decrease in volumes and a 1% negative mix impact.
Amcor's net income for FY24 stood at $730m, a decline from $1.04bn in FY23.
Its diluted earnings per share (EPS) for the 12 months ending 30 June 2024 fell to $0.505 from $0.705 in the previous fiscal year.
Its adjusted earnings before interest and taxes (EBIT) was reported at $1.56bn, marking a 1% decline on a comparable constant currency basis from the previous year.
In the fourth quarter (Q4) of FY24, Amcor's net sales were $3.53bn, a 4% decrease on a reported basis compared to the same period last year.
However, volumes increased by approximately 1%, indicating a five percentage point sequential improvement.
On a comparable constant currency basis, net sales in Q4 FY24 were 1% lower than the previous year while adjusted EBIT rose by 4%.
Amcor interim CEO Peter Konieczny said: "Amcor finished fiscal 2024 strongly, as the underlying business delivered another sequential improvement in volume and earnings growth, with fourth-quarter adjusted EPS up 9%, ahead of the expectations we set out in April.
“In fiscal 2025, we expect volumes and earnings will grow and adjusted free cash flow will remain strong. Importantly, combined with our historical average dividend yield, growth at the midpoint of our EPS guidance range results in total value creation in line with our shareholder value creation model 10-15% range."
In May this year, Amcor expanded its global packaging innovation hubs with the opening of its new facility in Ghent, Belgium.
