Packaging giant Amcor returns $US500 million to shareholders as profits rise 6.7%

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Amcor announced a 6.7% increase in profit to $US321.3 million for the first half and a $US500 million share buy back.

Sales were $4.809 billion, a rise of 0.3%, and sales margins rose to 10.8% from 10.3%.

The packaging giant announced a 9.2% dividend increase to 19 US cents, paid as 24.4 AUD cents.

CEO Ken MacKenzie says the result represents another period of higher profits and returns.

“There continued to be good growth in emerging markets and acquisitions delivered the benefits anticipated,” he says.

The company has completed 16 acquisitions over four years and undertaken a number of organic growth investments.

“Given our solid financial metrics and ongoing cash generation, a $US500 million share buy-back achieves the appropriate balance between returning capital to shareholders, maintaining flexibility to pursue growth and retaining strong credit metrics,” MacKenzie says.

He says the company will deliver another year of higher profits this year.

Amcor’s shares are trading at $13.54, about 2.7% higher.

Ken MacKenzie has decided to retire at the end of this financial year after ten years as CEO of packaging company Amcor.

He will be replaced by Ron Delia, currently Amcor’s Chief Financial Officer and a former McKinsey consultant based in New York.

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