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Packaging firm Amcor misses sales estimates on tepid demand
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Packaging firm Amcor misses sales estimates on tepid demand
Aug 15, 2024 4:06 PM

Aug 15 (Reuters) - Packaging company Amcor ( AMCCF )

reported a more-than-expected decline in fourth-quarter

sales on Thursday, hurt by weaker demand for its containers and

cartons.

Volumes for the company's products in rigid packaging fell

due to persistent destocking in healthcare categories in North

America - a major revenue-generating region.

Sales were also hurt by lower volumes in North American

beverage business through the quarter ended June 30.

Quarterly sales at Amcor ( AMCCF ) - which counts Cadbury parent

Mondelez International ( MDLZ ) and beverage maker PepsiCo ( PEP )

as its customers - dropped 4% to $3.54 billion. Analysts

on average estimated 1% decline to $3.64 billion, according to

LSEG data.

Peer International Paper ( IP ) also saw a slowdown in

demand for its corrugated packaging containers in the latest

quarter.

Amcor's ( AMCCF ) adjusted earnings for the fourth quarter were at

21.1 cents per share, edging past analysts' estimate of 20

cents, aided by easing raw material costs.

The company expects adjusted earnings per share for fiscal

2025 to be between 72 and 76 cents, the midpoint of which was in

line with analysts' estimate of 74 cents.

It posted adjusted profit of 70.2 cents per share for fiscal

2024.

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